Company: SBH
Filing Date: 2025-12-10
Form Type: DEF 14A
Source: 0001193125-25-313464
Chunk: 52

Company: Sally Beauty Holdings, Inc.
Filing Date: 2025-12-10
Form: DEF 14A
Chunk 52
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 to measure results and determine annual incentive and PSU payouts:

| AIP | Performance Metric & Rationale |     | PSUs |

| SALLYBEAUTY HOLDINGS, INC. | 57 | 2025 Proxy Statement |

Use of these metrics supports the following objectives: Generate sustainable growth. The Committee believes these performance components – incorporated into the Company’s annual budget and long-term planning – represent the metrics that can be used by our stockholders to assess the Company’s value. Using these metrics, together with overlapping performance periods for our PSUs, enables the Committee to evaluate the NEOs’ performance in generating sustainable growth. Balance annual and long-term objectives. The Committee also believes these measures highlight the importance of leading the Company to achieve both annual and long-term financial and strategic goals. These measures also reduce the risk that actions would be taken to sacrifice long-term growth to meet annual targets or vice versa. Accountability for controllable operating performance and long-term growth. The standards for determining performance against the AOI and AOIM metrics are determined in accordance with generally accepted accounting principles (GAAP) and, this year, adjusted for Fuel for Growth and Other, Corporate Relocation, and Asset Impairment. See Appendix 1 for a reconciliation of these measures to financial measures derived in accordance with U.S. GAAP. The terms of our AIP and PSUs provide the Committee the ability to adjust results to exclude certain items, either positive or negative, that it considers extraordinary when determining performance against pre-established financial goals. The Committee believes that retaining the ability to make adjustments encourages management’s willingness to take actions that may limit annual Company performance yet support long-term growth. BASE S ALARY The Committee determines the base salary of each NEO on an annual basis (unless market conditions or changes in responsibilities warrant a mid-year change) and targets the 50th percentile of our peer group. The Committee uses its judgment to vary executive officer pay based on factors such as an executive officer’s experience, performance and responsibilities, as well as internal parity. In evaluating the NEOs’ performance, the Committee, together with the Board, reviews our Chief Executive Officer's performance and relies primarily on our Chief Executive Officer’s performance review of each of the other executive officers. The subjective factors considered by our Chief Executive Officer ("CEO") primarily consist of whether the executive officer met his or her developmental and operational goals and the financial performance within the executive officer's area of responsibility. In September 2024, the Committee reviewed market data provided by FW Cook, our independent compensation consultant, on