Company: PRGO
Filing Date: 2025-03-10
Form Type: PRE 14A
Source: 0000950170-25-035751
Chunk: 43

Company: PERRIGO Co plc
Filing Date: 2025-03-10
Form: PRE 14A
Chunk 43
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 of the target value. 2022-2024 rTSR PSUs

#### 38PERRIGO•2025 PROXY STATEMENT
Executive Compensation The performance period for the 2022-2024 rTSR PSUs ended December 31, 2024. The Company’s relative TSR was below the 30 th percentile versus the constituents of the S&P 500, and therefore no shares were earned under this award LTIP Program Changes for 2025 As it does every year, the TCC, together with management, reviewed the design of our incentive programs to ensure they optimally support our key strategic and financial objectives. As input into decisions on our go-forward designs, the TCC considers peer group and broader market practices with respect to incentive program design, as well as feedback from shareholders. For the 2025 LTI program, the TCC made two changes from the 2024 program: 1) replaced PSU OI with PSUs based on Free Cash Flow Return on Net Sales and 2) changed the comparison group of companies used to measure relative TSR. 2025-2027 PSU Free Cash Flow Return on Net Sales During our robust engagement with shareholders on executive compensation issues, some shareholders suggested we consider including a return metric in our LTIP. Some also expressed a preference to avoid using the same measure in both short-term and long-term incentive plans. For these reasons, for the 2025 grant, the TCC replaced the PSU OIs with PSUs tied to Free Cash Flow Return on Net Sales (“PSU FCF/NS”). The TCC and management, with the support of their independent consultant, evaluated a wide variety of alternatives, and determined that FCF/NS optimally supported our business strategy by holding management accountable for the conversion of net sales into free cash flow, which should ultimately drive shareholder value creation. FCF/NS goals at threshold, target, and maximum for each of fiscal years 2025, 2026, and 2027 were established at the start of the performance period, reflecting our objective of continuous improvement in this return metric over time. At the end of the three-year period, and subject to the participants continued service through the three-year performance period, the payout will be based on the average of the payouts resulting from actual performance each year versus the pre-established goals. 2025-2027 rTSR PSUs During the review of the rTSR PSU program, the TCC reviewed our comparison group for rTSR performance to ensure