Company: CL
Filing Date: 2025-03-26
Form Type: DEF 14A
Source: 0001308179-25-000223
Chunk: 22

Company: COLGATE PALMOLIVE CO
Filing Date: 2025-03-26
Form: DEF 14A
Chunk 22
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 compensation for Mr. Wallace based on his individual performance, including his leadership, his long tenure as CEO and overall Company performance. Following this review, which also considered our compensation philosophy, our Company’s size relative to companies in the Comparison Group, competitive data from the Comparison Group and market trends, the P&O Committee determined in March 2024 to set (i) Mr. Wallace’s target cash compensation (salary and annual bonus) near

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Executive Compensation the median of the Comparison Group and (ii) his target long-term incentives (PBRSUs, annual stock options and annual time-based RSUs) above the median of the Comparison Group to ensure a direct and meaningful link between his long-term pay opportunity and continued stockholder value creation. In aggregate, Mr. Wallace’s overall target direct compensation (salary and annual and long-term incentives) for 2024 was therefore between the median and the 75th percentile of the Comparison Group. The P&O Committee continued to have the variable portion of Mr. Wallace’s target direct compensation represent a larger portion of his compensation as compared with the other Named Officers, to ensure his compensation is particularly strongly tied to Company performance. In making these determinations, the P&O Committee worked together with the other independent directors of the Board. In accordance with our compensation philosophy and in light of the market data and the other considerations noted above, in March 2024 the P&O Committee determined to maintain Mr. Wallace’s salary and annual bonus opportunity at the same level as in 2023 and to increase the long-term equity incentive portion of Mr. Wallace’s target direct compensation by approximately seven percent from $10,250,000 to $11,000,000 to link a more significant part of his compensation to the achievement of multi-year performance goals and our absolute and relative stock price performance. Comparison Group We use comparative compensation data from a group of other leading companies as a point of reference in designing our compensation programs and in setting compensation levels. The P&O Committee does not use this comparative data as the determinative factor in setting compensation levels but rather as a single component in its effort to verify that our compensation programs are reasonable and competitive in light of compensation levels at similarly situated companies. The P&O Committee also reviews our performance against this group for purposes of making awards that are based on relative performance measures, including the long-term incentive awards granted under the Growth Performance Plan. The comparison group is selected to include companies of similar size and complexity to us (including our substantial international operations) and