Company: RRGB
Filing Date: 2025-03-18
Form Type: PRE 14A
Source: 0001104659-25-025001
Chunk: 17

Company: RED ROBIN GOURMET BURGERS INC
Filing Date: 2025-03-18
Form: PRE 14A
Chunk 17
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 marketing plan that includes digital, loyalty, social and earned marketing efforts as well as “appointment dining” promotions to drive incremental traffic on days of the week that are less busy, provide opportunities to upsell additional items, and drive in-restaurant traffic allowing guests to fully experience our food quality and hospitality upgrades. • The Company launched a revamped Red Robin Royalty program that allows guests to earn rewards faster and encourages more frequent visitation. At the end of 2024, the Red Robin Royalty program had almost 15 million members, and we believe this was, and will continue to be, a key driver of our improved traffic. • The Company delivered strong Relative Guest Traffic, as reported by Black Box Intelligence, an independent third party. The Company was in the top 60th percentile change in guest traffic as compared to 70 other restaurant brands in the casual dining segment versus the prior year. 27 TABLE OF CONTENTS 2024 COMPENSATION ACTIONS Our incentive programs demonstrate our commitment to a pay for performance compensation philosophy. In 2023, the Compensation Committee did not make any year over year adjustments to base salary, short-term incentive targets, or long-term incentive targets for our named executive officers. In 2024, the Compensation Committee made limited year over year adjustments, taking the compensation actions described below. Base Salary The Compensation Committee made year over year market adjustments to the base salaries of the following named executive officers in 2024: • Ms. Mussetter received a base salary increase from $410,000 to $420,000, effective March 1, 2024; and • Mr. Wilson received a base salary increase from $425,000 to $475,000, effective July 15, 2024. Short-Term Performance-Based Incentive In 2024, Adjusted EBITDA remained the primary measure of our short-term incentive (STI) program, at 85% weighting (with 60% based on annual Adjusted EBITDA and 25% based on a cumulative quarterly Adjusted EBITDA). Relative Guest Traffic (percent change in guest traffic of comparable restaurants in the casual dining segment versus the prior year, as reported by Black Box Intelligence, an independent third party) replaced achievement of G&A Expenses for the remaining 15% weighting. Additionally, in 2024, the STI offered a “kicker” of up to an additional 25% of target STI award if annual Adjusted EBITDA is equal to or greater than 120% of target