Company: SBH
Filing Date: 2025-12-10
Form Type: DEF 14A
Source: 0001193125-25-313464
Chunk: 48

Company: Sally Beauty Holdings, Inc.
Filing Date: 2025-12-10
Form: DEF 14A
Chunk 48
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 reconciliation of these measures to financial measures derived in accordance with U.S. GAAP. |
|                                 | (3)3-Year Average Return on Invested Capital (“ROIC”) is defined as net income plus after-tax interest expense divided by monthly invested capital over the three-year performance period.                                                                                                                                                                               |
|                                 | (4)Please see“Compensation Discussion and Analysis — FY25 Executive Compensation Program — Long-Term Incentives”section of this CD&A for Total Shareholder Return (“TSR”) and AOIM definition.                                                                                                                                                                           |

| SALLYBEAUTY HOLDINGS, INC. | 52 | 2025 Proxy Statement |

| FY25Changes | Compensation Program ChangesAs we looked at program design for FY25, we focused on improvements to our Strategic Initiatives aimed at driving long-term future growth and enhancing efficiencies and profitability. We also strived to balance retention, incentivizing associates on key growth and efficiency initiatives, and growing our value for shareholders. As a result, we made minor adjustments to our payout scales and continued to set challenging yet reasonable goals aligned with our annual plan. For the Annual Incentive Plan ("AIP"), we kept the same metrics and weightings (60% AOI, 20% Comparable Sales, and 20% Strategic Initiatives), with Comparable Sales continuing to be based on two, six-month performance periods (first six-months or half ("H1") and second six-months or half ("H2")) versus a one-year performance period used for the other metrics, with any payout for this metric occurring after the end of FY25. Stock-based long-term incentive ("LTI") awards continued to be in the form of 50% performance share units ("PSUs") and 50% restricted stock units ("RSUs"), with the weighting of the PSU performance metrics continuing to be 60% AOIM over three, one-year performance periods and 40% relative TSR ("rTSR") over a three-year cumulative performance period.See “Compensation Discussion and Analysis — FY25 Executive Compensation Program — Annual Incentive” section and “Compensation Discussion and Analysis — FY25 Executive Compensation Program — Long-Term Incentives” section for specific goals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| FY25NEO Pay | ✓ The Committee increased base salaries for the NEOs between 3.1% to 11.8%, to make overall levels more consistent with market data from our peer group.✓ The NEOs were eligible for annual