Company: RRGB
Filing Date: 2025-04-24
Form Type: DEF 14A
Source: 0001104659-25-038610
Chunk: 36

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-04-24
Form: DEF 14A
Chunk 36
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 deduction limit, no assurance can be given that compensation intended to satisfy the requirements for exemption from Section 162(m) in fact will. Further, while we consider deductibility as one factor in determining executive compensation, in some cases we may decide it is either not possible or desirable to satisfy all of the conditions of Section 162(m) for deductibility and still meet our compensation needs. Accordingly, we may pay compensation that is not deductible under Section 162(m) from time to time.

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TABLE OF CONTENTS GOVERNANCE OF EXECUTIVE COMPENSATION ✓ Pay for performance-focused executive compensation structure, with a significant portion of pay “at-risk” ✓ Independent Compensation Committee approves executive compensation structure and performance goals ✓ Independent compensation consultant advises the Compensation Committee ✓ Payouts under our annual and long-term incentive compensation plans are capped ✓ Long-term incentives feature multiple components; performance is measured over multi-year periods with value dependent on share price as compared to a group of key competitors; payouts are capped if TSR is negative ✓ Double trigger required for cash severance and equity vesting upon change in control (other than certain performance awards) ✓ Meaningful stock ownership guidelines for executives and Board members ✓ Formal policy prohibiting hedging and pledging of Company securities by executive officers and directors ✓ Clawback policy for the return of incentive-based compensation in the event of a financial restatement ✓ Limited perquisites ✓ No incentivizing of short-term results to the detriment of long-term goals and results ✓ Compensation practices are appropriately structured to avoid incentivizing excessive risk taking ✓ No excise tax gross ups for change in control related situations ✓ No repricing of underwater options without stockholder approval Executive Stock Ownership Guidelines The Compensation Committee believes that executive stock ownership requirements increase alignment of executive interests with those of stockholders with respect to long-term ownership risk. The guidelines require executive officers to achieve during the term of the executive’s employment a dollar value of Company’s securities based on a multiple of base salary. The current ownership guidelines require our CEO to own five times base salary and our other executive officers to own three times base salary. Pursuant to the guidelines, the value of the executive’s holdings is based on the value of Company securities held, which is calculated using the 30-day average share price of the Company’s common stock. Equity owned of record or beneficially, including RSUs, earned but unvested PSUs, and vested in-the-money options, are credited toward the guidelines. The executive officers have five years to achieve the guidelines from their effective date of employment or promotion date.