Company: RRGB
Filing Date: 2025-03-18
Form Type: PRE 14A
Source: 0001104659-25-025001
Chunk: 26

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-03-18
Form: PRE 14A
Chunk 26
---
-based cash incentive. Under the 2024 STI, named executive officers were eligible to receive a cash incentive equal to a percentage of their annual base salary if certain performance measures were met. The STI was based on the following three performance measures: Annual Adjusted EBITDA (60% weight), Quarterly Adjusted EBITDA (25% weight) and Relative Guest Traffic (15% weight). Annual Adjusted EBITDA (60% weight) . The Annual Adjusted EBITDA performance measure consists of earnings before interest, taxes, depreciation, and amortization (“EBITDA”), which may be adjusted in accordance with the 2017 Plan to remove the effect of any one or more of the following: equity compensation expense under ASC 718; accelerated amortization of acquired technology and intangibles; asset write-downs; litigation or claim judgments or settlements; changes in or provisions under tax law, accounting principles or other such laws or provisions affecting reported results; accruals for reorganization and restructuring programs; discontinued operations; restaurant closure costs; executive transition costs; acquisition and dispositions; a material change

37

TABLE OF CONTENTS

in planned capital expenditures; and any items that are unusual in nature, non-recurring, or infrequent in occurrence and is referred to herein as “Adjusted EBITDA.” The Compensation Committee selected Adjusted EBITDA as a measure because it captures our operating results without reflecting the impact of decisions related to our growth, non-operating factors, and other matters. The Compensation Committee believes the 2024 Adjusted EBITDA goals were rigorous and demonstrated our commitment to a pay for performance philosophy. Quarterly Adjusted EBITDA (25% weight) . The Quarterly Adjusted EBITDA performance measure is calculated using Adjusted EBITDA, except on a quarterly year-to-date (cumulative) basis (6.25% weight for each quarter, totaling 25%). Potential payout amounts for the Adjusted EBITDA metric under the 2024 STI ranged from 0% to 200% of the executive’s target opportunity based on achievement as shown in the tables below. Payouts for performance between minimum, target, and maximum are calculated by linear interpolation. The maximum payout for each Quarterly Adjusted EBITDA performance period was 100%, with a year-end “true-up” if the Annual Adjusted EBITDA exceeded 100% of the target.

| ​ | ​ | Annual Adjusted EBITDA Target and Payout Scale |   |   |