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

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-04-24
Form: DEF 14A
Chunk 24
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 our pay programs do not encourage unnecessary or excessive risk taking. The factors considered by the Compensation Committee include: • the general design philosophy of our compensation policies and practices for employees whose behavior would be most affected by the incentives established by our compensation policies and practices, as such policies and practices relate to or affect risk taking by employees on our behalf, and the manner of their implementation; • our risk assessment and incentive considerations in structuring our compensation policies and practices or in awarding and paying compensation; • how our compensation policies and practices relate to the realization of risks resulting from the actions of employees in both the short term and the long term; • our policies regarding adjustments to our compensation programs and practices to address changes in our risk profile; and • material adjustments we have made to our compensation policies and practices as a result of changes in our risk profile. The Compensation Committee believes it has mitigated unnecessary risk taking in both the design of the compensation plans and the controls placed upon them because: • payouts under our STI and LTI compensation plans are capped at 200% of target; • payouts under PSUs with relative TSR performance metric are capped at the target grant amount if Company TSR is negative; • LTIs feature multiple components; performance is measured over multi-year periods with value dependent on share price as compared to a group of key competitors; • the Compensation Committee has the ability to reduce payouts under our incentive compensation plans in its discretion; • executives are subject to robust stock ownership guidelines; 31 TABLE OF CONTENTS • executives are subject to anti-hedging and anti-pledging policies with respect to our common stock; • The Company has a robust Clawback Policy for the return of incentive-based compensation in the event of a financial restatement • the performance goals under our incentive programs relate directly to the business plan approved by the Board of Directors; and • appropriate balance between our annual operating achievements and longer-term value creation, with a particular emphasis on longer-term value creation for our executives. The Compensation Committee completes this evaluation annually. Accordingly, based upon the foregoing, the Company believes the risks arising from its compensation policies and practices are not reasonably likely to have a material adverse effect on the Company. 32 TABLE OF CONTENTS 2024 EXECUTIVE COMPENSATION OVERVIEW Our 2024 executive compensation program was comprised of three primary elements: (i) base salary, (ii) STI opportunity for an annual performance-based cash award, and (iii) LTI opportunity that consists of RSUs that vest ratably over three years and PS