Total compensation: $3,612,168 (year ended June 30, 2019)
Salary: $950,000 • Bonus: $145,802 • Nonequity incentive pay: $715,431
Other: $26,946 • Value realized on vesting shares: $1,773,989 • CEO pay ratio: 409-1
Median employee pay: $20,626 • Total shareholder return: 16.6%
Note: Regis is in the midst of strategic shift to an asset light and fully franchised business model. As a result of that strategic change, the company has also redesigned its executive-compensation plan. In designing it, the company met with some its largest shareholders, compensation experts at proxy advisory firms and hired a new compensation consultant.
Among the changes made was to eliminate annual automatic equity grants and instead grant a larger equity award every five years The value of the five-year equity grant is smaller than the combined value of annual equity grants under the previous model but includes a new stock-purchase plan and matching restricted stock plan that if executives participate could receive greater rewards than under the old plan.
The company also set what it believed to be "genuinely tough stretch goals" for the prior fiscal year's annual cash awards. It missed two of the financial goals but exceeded the target for franchise salon openings. Executives also generally exceeded individual goals so the board of directors used their discretion to award executives bonuses, including an additional $145,802 for Sawyer.
Sawyer's annual-incentive pay, including the discretionary bonus, was $861,233, still less than the approximately $2 million bonus he earned the previous year. He did realize $1.8 million from previously granted restricted shares that vested, which pushed his total realized compensation to $3.6 million for the year, a 17% increase over the previous year. That amount doesn't include Sawyer's five-year equity grant of $6.6 million worth of restricted stock, but that award is used to calculate Sawyer's total compensation used in the CEO pay ratio.
Patrick Kennedy
