Company: CHD
Filing Date: 2025-03-20
Form Type: DEF 14A
Source: 0001193125-25-059273
Chunk: 62

Company: CHURCH & DWIGHT CO INC /DE/
Filing Date: 2025-03-20
Form: DEF 14A
Chunk 62
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 We refer to this objective as “retention incentives”. |

Church & Dwight’s fiscal year 2024 results continued to be aligned with pay in the following ways:

| • |     | Annual Incentive Plan: The Annual Incentive Plan aligns the interests of our executives and stockholders by achieving goals that support long-term stockholder return. Each year the Committee assesses the difficulty of the projected EPS goal and provides a rating that influences the target payout. In 2024, the Annual Incentive Plan rating was set at 1.2, a level 20 percent higher than a 1.0 target rating because our projected EPS growth on a percentage basis was significantly more challenging to achieve than the median projected EPS growth of the Corporate Incentive Plan Rating Peer Group (as defined below). The Company achieved a plan rating of 1.39 based on 2024 actual performance, as adjusted. The Annual Incentive Plan payouts to our named executive officers for 2024 are discussed in further detail below under “2024 Compensation – Annual Incentive Plan.” |

| • |     | Long-Term Incentive (“LTI”): The Committee utilizes stock options as the primary form of long-term compensation. The Committee believes that stock options provide a strong incentive to increase stockholder value, since the value of stock options is directly dependent on the market performance of our common stock. The Committee believes that options are an appropriate vehicle for long-term equity compensation because they directly reflect the stockholder experience, are straightforward to communicate, and provide value only if our stock price increases over time, which aligns our executives’ interests with those of our stockholders in delivering TSR. Beginning in 2023, the Committee approved performance stock units and restricted stock units as additional LTI vehicles in order to more closely align with market practice and to provide our executives with alternative forms of incentives that complement our stock option awards. In deciding the weighting among LTI vehicles, the Committee benchmarked the Compensation Peer Group but also balanced the historical reliance on stock options in driving successful results. For 2023 and 2024, 75% of the long-term incentive awards for the executive officers consisted of stock options, 15% of performance stock units, and 10% of restricted stock units. The performance stock units granted in 2023 and 2024 are measured based on a relative ranking of total shareholder return over a three-year performance period as we believe this is the best output metric available. |

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