Company: PRMB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0002042694-25-000003
Chunk: 157

Company: Primo Brands Corp
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 157
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iversaries of the date of grant and include a service condition.Additionally, the Company granted 465,481 Performance-based RSUs which vest at the end of a three-year performance period beginning on the first day of the Company's 2025 fiscal year and ending on the last day of our 2027 fiscal year ("2025 Performance Awards"). The number of shares ultimately awarded will be based upon the performance payout rate, which can range from 0% to 200% of the awards granted. During the year ended December 31, 2024, the Compensation Committee determined that the 2025 Performance Awards will vest based on the Company’s achievement total shareholder return (”TSR”) relative to the TSR attained by companies within the Company's defined peer group for the applicable performance period (the “Performance Objective”). The number of Performance-based RSUs that may vest, and the related unrecognized compensation cost is subject to change based on the Performance Objectives achieved during the vesting period.

F-36

The grant date fair value of the 2025 Performance Awards granted during the year ended December 31, 2024 was estimated at the grant date using the Monte-Carlo simulation model with the following weighted-average assumptions:December 31, 2024Risk-free interest rate4.0 %Average expected life (years)3.1Expected volatility28.3 %Beginning TSR Price$30.30 The risk-free rate is based on the U.S. Treasury yield in effect at the grant date with a term equal to the simulation period used in the Monte-Carlo simulation model. The simulation period is equal to the performance periods associated with the performance shares. Volatility is based on the Company's historical data. Beginning TSR price is equal to the average closing price for the last eight trading days immediately prior to the grant date.The following table summarizes the activity for the Company's Time- and Performance-based RSUs:Number of Performance-based RSUs (in thousands)Weighted-average grant date fair valueNumber of Time-based RSUs (in thousands)Weighted-average grant date fair valueOutstanding as of December 31, 2023—$— —$— Replacement awards in conjunction with the Transaction—$— 3,288$24.21 Awarded465$44.23 240$31.73 Issued—$— (971)$24.21 Forfeited—$— —$— Outstanding as of December 31, 2024465$44