Company: SYY
Filing Date: 2025-03-03
Form Type: 8-K
Source: 0000096021-25-000013
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Company: SYSCO CORP
Filing Date: 2025-03-03
Form: 8-K
Item: Item 5.02
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ITEM 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 26, 2025, the Compensation and Leadership Development Committee (the “Committee”) of the Board of Directors (the “ Board”) of Sysco Corporation (“ Sysco” or the “Company”) approved for Mr. Thomas R. Peck, Jr., Executive Vice President, Chief Information and Digital Officer a one-time award of performance share units (“PSUs”) valued at $1.5 million and intended by the Committee to focus him on the successful implementation of a significant, multi-year technology initiative and enhance his retention during this critical period.

The Company is currently implementing a long-term technological transformation business strategy over the next three years that is critical to our Algorithm for Growth, and Mr. Peck’s knowledge and skills are essential to the successful execution of this initiative. The PSUs are tied to specific metrics, including the successful completion of the long-term technological transformation project.

The PSUs provide the opportunity for Mr. Peck to receive shares of Sysco common stock (“Common Stock”) based on performance over a three year performance period, but the ultimate number of shares of Common Stock to be earned with respect to Mr. Peck’s PSUs will be determined at the end of the three-year performance period and will either be 0% (if one or more of the metrics is not satisfied) or 100% (if all of the metrics are satisfied) of the target number of PSUs. Dividend equivalents accrue during the performance period and are paid either in shares or in cash, in the discretion of the Committee, based on the number of PSUs earned following certification of the performance metrics.

In order to enhance the retentive effect of this one-time PSU award, the Committee established special provisions governing the treatment of the PSUs upon the occurrence of certain events resulting in the termination of Mr. Peck’s employment:

• Retirement/Involuntary Termination with or without Cause/Resignation with or without Good Reason: the PSU award will be forfeited in its entirety;

•Death: the PSUs will vest pro-rata based on (i) the number of months served in the performance period and (ii) performance at target level;

•Disability: the PSUs will vest pro-rata based on (i) the number of months served in the performance period and (ii) the actual performance achieved at the end of the performance