Company: CL
Filing Date: 2025-03-26
Form Type: DEF 14A
Source: 0001308179-25-000223
Chunk: 28

Company: COLGATE PALMOLIVE CO
Filing Date: 2025-03-26
Form: DEF 14A
Chunk 28
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 not met. These ethics and compliance objectives were achieved in 2024 and therefore no downward adjustment was applied. Performance Measures and Bonus Payouts Financial Measures (80%) 80% of the 2024 cash bonuses for the Named Officers were based on financial performance measures, namely Base Business Earnings Per Share and organic sales growth, in each case as reported in our 2024 financial results. The organic sales growth measure was selected to drive our growth strategy and reflect the underlying momentum of our business. The earnings per share measure was selected to create a strong focus on our overall profit goal and its underlying drivers of sales, cost control and financial efficiency. The earnings per share measure is adjusted for the effects of the following, as applicable: restructuring charges, charges for certain litigation and tax matters, acquisition-related costs, gains and losses from certain divestitures and certain other unusual, non-recurring items. The purpose of the adjustments is to ensure that the measurement of performance reflects factors that management can directly control and that payout levels are not impacted by factors unrelated to the ongoing operation of the business. These adjustments are consistent with the presentation in our public filings in which the impact of these items is discussed separately. The P&O Committee established annual bonus targets in March 2024 consistent with our publicly announced guidance for 2024 and based on our 2024 plan to continue to deliver organic sales growth and consistent compounded earnings per share growth through increasing household penetration, improving brand health and investing behind our strategic priorities. Given the economic and market conditions at the time the targets for the annual bonus award were set, the target goals were designed to be challenging but achievable, with payout levels intended to encourage strong, focused performance in a difficult operating environment characterized by continuing foreign exchange volatility, high interest rates, geopolitical turmoil and macroeconomic uncertainty. Due to our 2024 focus on returning to more balanced volume and pricing growth as lower levels of underlying raw material inflation led to less pricing growth in our categories, the 2024 organic sales growth target was set slightly lower than the 2023 target percentage, consistent with our publicly announced organic sales growth goal for 2024, while the maximum was set at a higher percentage than in 2023 to ensure the goals were appropriately challenging. We take into account the budget for our share repurchase program when setting our earnings per share targets, and no decisions about share repurchase plans are tied to an attempt to influence compensation results.

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Executive Compensation In 2024, the performance required to receive threshold, target and