Company: THS
Filing Date: 2025-03-03
Form Type: PRER14A
Source: 0001320695-25-000014
Chunk: 36

Company: TreeHouse Foods, Inc.
Filing Date: 2025-03-03
Form: PRER14A
Chunk 36
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 are committed to structuring an executive compensation program intricately linked to Company performance and stockholder value. Our governance practices and executive compensation programs are designed to drive Company performance.

TreeHouse has a history of paying for performance. For 2024, the Compensation Committee exercised negative discretion to not provide any Short-Term Incentive Plan ("STIP") payouts due to the Company's shortfall to meet its financial targets. Additionally, the 2022 Performance Stock Units ("PSUs") for the FY2022-2024 performance measurement period of the Long-Term Incentive Plan ("LTIP") paid out below target at 57.8%. The 2024 performance was impacted by the significant inflationary pressure on U.S. households, which persisted over the past year, contributed to sluggish overall food and beverage consumption trends. Additionally, the impact of the voluntary recall of frozen griddle products impacted cost and production. Furthermore, industry-wide supply chain disruption over the last several years still impacts ingredient costs and packaging input costs, which remain elevated compared to historical levels. Over the last six years, our STIP has paid out above target only two times, while the LTIP PSUs have only been earned above target once, as the challenging performance targets set by the Compensation Committee were not achieved. The CEO's realized pay during his tenure has been less than 60% of target pay, as shown in the CEO Pay for Performance chart. These results demonstrate clear alignment between executive pay and Company performance.

Following extensive engagement with our stockholders, we saw a significant increase in support for our executive officer compensation program, with approximately 96% of the votes cast at the 2024 Annual Meeting approving our Say-on-Pay proposal. As part of our ongoing efforts to address stockholder concerns raised during our 2023 and 2024 engagement efforts, in 2024 we adjusted our PSU design, incorporating two new metrics—return on invested capital and total organic revenue—and establishing cumulative three-year performance targets for each metric in lieu of consecutive one-year targets. As in 2023, no special equity awards were granted to our NEOs during 2024.

As we continue to hear your feedback and adjust our compensation programs accordingly, we encourage you to vote “FOR” approval of the advisory resolution to approve the Company’s executive compensation under Proposal 2.

| This letter is respectfully submitted by the Compensation Committee of the Board. 
 Jean E. Spence, Chair                                                             
 Adam J. DeWitt                                                                    
 Scott D. Ostfeld                                                                  
 Joseph E