Company: WCN
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001104659-25-032201
Chunk: 38

Company: Waste Connections, Inc.
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 38
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 the Compensation Committee introduced performance-based restricted share units, or PSUs, which are awards subject to three-year performance hurdles to further enhance the link between executive compensation and our performance. Performance goals for the three-year performance period are recommended by management based on our historical performance, current projections and trends. The Compensation Committee reviews management’s recommendations (including a discussion of associated risks), determines appropriate revisions, and once satisfied with the degree of difficulty associated with goal achievement, approves the goals for each performance period during the first quarter of the performance period. The Compensation Committee seeks to establish goals for which the likelihood of missing the target goal is at least as high as the likelihood of achieving the target goal based on reasonable assumptions and projections at the time of grant. For the annual award in February 2024, the Compensation Committee provided that, for the 2024-2026 performance period, each participant can earn up to 200% of the target number of PSUs based on achievement of three metrics: a return on invested capital (“ROIC”) improvement goal, weighted at 50%, a free cash flow per share (“FCFPS”) growth goal, weighted at 50%, and supplemental ESG target goals, as described in greater detail below. The Compensation Committee selected the ROIC and FCFPS metrics because it believes they are critical drivers of sustained value creation over the longer term and align with the interests of shareholders. The addition of ESG and sustainability targets was made in 2021 following the adoption of long-term, aspirational targets for achievement of sustainability-related goals in 2020. The table below shows the required achievement of ROIC improvement and FCFPS growth performance measures and the corresponding potential payouts under our PSUs granted in 2024 using annual measurements to calculate three-year achievement against thresholds (as interpolated and pro-rated) for each of the three years.

| ​ | ​                              | ​ | ​ | 3-YEAR ROICIMPROVEMENT | ​ | ​ | ANNUAL FREE CASHFLOW/SHAREGROWTH | ​ |
| ​ | Threshold (0% payout)          | ​ | ​ | 25 basis points        | ​ | ​ | 2.0%                             | ​ |
| ​ | Minimum (50% of target payout) | ​ | ​ | 75 basis points        | ​ | ​ | 4.0%                             | ​ |
| ​ | Target (100% payout)           | ​ | ​ | 125 basis points       | ​ | ​ | 6.0%