Be You. No One Else Can
In March 2022, Schick launched a new brand positioning that challenged the grooming industry status quo with the debut of "Be You. No One Else Can," a campaign that celebrates men as they are and encourages them to embrace their individuality. The rebrand included a new logo, minimalist packaging, redesigned website (Schick.com), video-led creative and digital-first activations on Reddit and TikTok that give men a platform to join the conversation and tell their unique stories. Rather than featuring renowned celebrities, actors or models, the campaign spotlights everyday men because Schick is a brand for every kind of man. The rebrand brings Schick's legacy of listening to men to life and represents it in a new, different and engaging way.
People First
In furtherance of our purpose-led, people-first values, in January 2022 we awarded global hourly and salaried employees a year-end bonus in appreciation of their hard work during the COVID-19 pandemic. In addition to our growth strategy, we have also implemented an equally important holistic cultural transformation, transforming into an organization that embodies purpose and empathy and prioritizes the well-being and mental and physical health of every employee, from its corporate offices to its manufacturing facilities. Similarly, one of many examples of our continued commitment to living our “Listen Up, Speak Up” value is our use of periodic “pulse” surveys which promote open and transparent dialogue that enable us to increase brand, product,check in on our teammates quickly and market investment levels. Our goal isefficiently on a wide variety of topics. This helps us respond swiftly to compete against large, small,their concerns and new players both in the U.S., our largestfeedback, adjust or change course as required and most critical market, and internationally. For us to compete at the next level in this new environment, we are taking several steps to accomplish the following goals:
We will be powered by our regions, with an entrepreneurial bias towards “local and fast” and increased accountability and decision rights at the market/customer level.
We will integrate all brands and declare and support our priority markets.
To innovate with more agility, and to leverage our strong central R&D team, regions will drive our innovation agenda, supported by a global Innovation and Insights team.
We will continue to be consumer-centric, with more precise strategic marketing and all functions collaborating to drive business plans and execution against consumer-based opportunity.
We are confidentremove processes that the underlying strength of our Company and the steps we are taking to redesign our operational model will result in an Edgewell that is more purposeful, more in control of outcomes, closer to the consumer, faster and more agile, and a better partner to retailers.do not add value.
How Pay Was Tied to our Company’s Performance in Fiscal Year 20212022
Our fiscal year 20212022 results and compensation decisions continue to illustrate application of our pay-for-performance philosophy, with pay being driven by performance in the following ways:
Fiscal Year 20212022 Base Salary. In November 2020, in response to2021, the ongoing pandemic, the Compensation Committee decided not to increaseHC&CC increased base salaries for the existing named executive officers for fiscal 2021.2022 to ensure that compensation remains competitive with comparable positions at companies considered to be our peers, while continuing to emphasize pay-for-performance.
Fiscal Year 20212022 Annual Incentive Payout. For the fiscal 20212022 Executive Officer Bonus Program, the combined weighted payout for the NEOs was 110%77.6% of the target amount.
Fiscal Year 20212022 Long-Term Incentive Payout. The performance metrics for our fiscal year 2019 and April 2020 Long-Term Incentive award were adjusted EPS for the 2020 fiscal yearcumulative EBIDTA (weighted 60%50%) and adjusted cumulative free cash flow as a percentage of adjusted cumulative net sales (weighted 40%50%). The total payout for these PRSEs was 80%72.7% of target. Certain named executive officers also had a Project Fuel Savings metric (100%). The total payout for these PRSEs was 171.4%.
See Appendix A for reconciliation and other information about these non-GAAP financial measures.
Principles of the Edgewell Compensation Program
We believe thatone of the most important factors to the long-term success of Edgewell depends on the talents of our executive officers and the alignment of their compensation with the interests of the Company and our shareholders. Our ability to attract, retain, and motivate our executive officers is influenced in large part by our compensation program. Periodically,Annually, we review various aspects of our compensation program to ensure that it remains aligned with our business strategy and the above-referenced goals. The guiding principles of our compensation program include:
A “pay-for-performance” culture, which drives achievement of our short- and long-term goals and, ultimately, shareholder value.;value;
We incentivize sustained company performance as measured by operating results and total shareholder return;
Alignment of our executive officer’s interests with those of our shareholders by linking a significant portion of total compensation to the achievement of Company-wide performance criteria during one- and three-year performance periods; and
We discourage behavior that could lead to unnecessary or excessive risk-taking by providing a balance of fixed and at-risk pay, with short-term and long-term performance horizons.