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CHECK THE APPROPRIATE BOX:
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☐ Preliminary Proxy Statement
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☐ Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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☑ Definitive Proxy Statement
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☐ Definitive Additional Materials
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☐ Soliciting Material under §240.14a-12
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PAYMENT OF FILING FEE (CHECK ALL BOXES THAT APPLY):
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☑ No fee required
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☐ Fee paid previously with preliminary materials
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☐ Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11
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William S. Simon
Chairman of the Board of Directors |
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Stephen B. Bratspies
Chief Executive Officer |
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2024 Proxy Statement
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1
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WHEN:
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WHERE:
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RECORD DATE:
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April 22, 2024
9:00 a.m., Eastern time |
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The Annual Meeting will be held
exclusively online at www.virtualshareholdermeeting.com/ HBI2024. |
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Stockholders of record at the close
of business on February 13, 2024 are entitled to notice of, and to vote at, the Annual Meeting. |
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Purpose
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Board Vote Recommendation
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Page
Reference |
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1.
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to elect ten directors to serve on the Hanesbrands Board of Directors until Hanesbrands’ next annual meeting of stockholders and until their successors are duly elected and qualified;
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FOR all ten director
nominees |
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2.
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to vote on a proposal to ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for our 2024 fiscal year;
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FOR
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3.
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to approve, on an advisory basis, named executive officer compensation as disclosed in this Proxy Statement; and
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FOR
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4.
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to transact such other business as may properly come before the meeting or any adjournment or postponement thereof.
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HOW TO VOTE:
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Whether or not you plan to attend the meeting, we urge you to authorize a proxy to vote your shares via the toll-free telephone number or over the Internet, as described in the enclosed materials. If you requested and received a copy of the proxy card by mail, you may sign, date and mail the proxy card in the envelope provided.
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BY TELEPHONE
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BY INTERNET
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BY MAIL
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In the U.S. or Canada, you can authorize a proxy to vote your shares toll-free by calling 1-800-690-6903.
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You can authorize a proxy to vote your shares online at www.proxyvote.com.
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You can authorize a proxy to vote by mail by marking, dating, and signing your proxy card or voting instruction form and returning it in the postage-paid envelope.
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2024 Proxy Statement
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2
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NOTICE OF THE 2024 ANNUAL MEETING OF
STOCKHOLDERS |
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| PROPOSAL 2 — RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | | | | 40 | | |
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| PROPOSAL 3 — ADVISORY VOTE TO APPROVE NAMED EXECUTIVE OFFICER COMPENSATION | | | | | 43 | | |
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Item 1.
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Election of Directors
The Board of Directors recommends a vote FOR the ten director nominees named below
See page 17 for further information about our director nominees
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Name
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Occupation
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Age
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Director
Since |
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Independent
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Other Public
Company Boards |
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Stephen B. Bratspies
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Chief Executive Officer of Hanesbrands Inc.
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56
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2020
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NO
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Geralyn R. Breig
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President of Revlon North America
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61
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2018
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YES
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Colin Browne
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Former Chief Operating Officer of Under Armour, Inc.
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59
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2023
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YES
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Natasha C. Chand
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Principal at NoBo, LLC
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50
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2023
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YES
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Mark A. Irvin
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Executive Vice President and Chief Supply Chain Officer of Best Buy Co., Inc.
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61
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2023
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YES
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James C. Johnson
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Former General Counsel of Loop Capital Markets LLC
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71
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2006
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YES
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3
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John G. Mehas
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CEO of Vineyard Vines, LLC
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60
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2023
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YES
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Franck J. Moison
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Former Vice Chairman of the Colgate-Palmolive Company
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70
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2015
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YES
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2
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Robert F. Moran
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Chief Executive Officer of UNATION, Inc.
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73
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2013
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YES
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William S. Simon
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Former Executive Vice President of Walmart Stores, Inc. and former President and CEO of Walmart U.S.
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64
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2021
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YES
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2
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2024 Proxy Statement
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4
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Stephen B. Bratspies
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Geralyn R. Breig
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Colin Browne
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Natasha C. Chand
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Mark A. Irvin
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James C. Johnson
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John G. Mehas
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Franck J. Moison
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Robert F. Moran
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William S. Simon
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Total Directors
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Skills and Qualifications
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Chief Executive Officer Experience
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5/10
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Governance, Compliance and Risk Oversight
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10/10
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Financial/Accounting/Audit
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10/10
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Apparel, Retail or Consumer Products Industry Experience
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10/10
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Business Operations
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10/10
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Strategy Development
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10/10
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Supply Chain/Distribution/Manufacturing Experience
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9/10
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Talent and Human Capital Management/Diversity, Equity & Inclusion Experience
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10/10
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International Business Experience
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9/10
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Chief Financial Officer Experience
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1/10
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Gender
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Women
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2/10
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Men
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8/10
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Race/Ethnicity
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Racial/Ethnic Diversity
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3/10
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2024 Proxy Statement
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5
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Item 2.
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To ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm
The Board of Directors recommends a vote FOR this item
We are asking you to ratify the appointment of PricewaterhouseCoopers LLP (“PwC”) as our independent auditor for our 2024 fiscal year.
See page 40 for further information about our independent auditors
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Item 3.
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To approve, on an advisory basis, named executive officer compensation as disclosed in this Proxy Statement
The Board of Directors recommends a vote FOR this item
Hanesbrands’ stockholders have the opportunity to cast a non-binding, advisory “say on pay” vote on our named executive officer compensation, as disclosed in this Proxy Statement. We ask for your approval of the compensation of our named executive officers. Before considering this proposal, please read our Compensation Discussion and Analysis and the executive compensation tables and related narrative disclosure in this Proxy Statement, which explain our executive compensation programs and the Talent and Compensation Committee’s compensation decisions.
See page 43 for further information about our executive compensation program
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2024 Proxy Statement
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6
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ISG Principle
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Hanesbrands Practice
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Principle 1
Boards are accountable to stockholders
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Annual Board and committee self-assessments
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Declassified Board – all Directors are elected annually
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Proxy access for Director nominees
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Individual Directors tender resignation if they fail to receive majority of votes cast
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No poison pill
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Disclosure of corporate governance and Board practices
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Principle 2
Stockholders should be entitled to voting rights in proportion to their economic interest
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One share, one vote
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No disparate voting rights
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No dual-class structure
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Principle 3
Boards should be responsive to stockholders and be proactive in order to understand their perspectives
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Directors available for stockholder engagement
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Stockholder outreach process
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Disclose key actions taken in response to stockholder feedback, including stockholder votes on proposals at the annual meeting
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Principle 4
Boards should have a strong, independent leadership structure
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Annual review and determination of leadership structure
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Independent Chairman of the Board
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Non-management directors meet regularly in executive session
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Principle 5
Boards should adopt structures and practices that enhance their effectiveness
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9 of 10 Director nominees are independent
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All Board committees fully independent
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Approximately 98% average attendance by incumbent Directors at Board and committee meetings in 2023
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No “overboarded” Directors – no Director serves on more than three other public company boards of directors
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Specified retirement age policy for Directors
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Principle 6
Boards should develop management incentive structures that are aligned with the long-term strategy of the company
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Board oversees executive compensation programs to align with long-term strategy of the Company
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Combination of short- and long-term performance goals
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Executive and Director stock ownership program and equity holding requirements
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Hedging and pledging of company stock is prohibited
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Our annual “Say on Pay” advisory vote received approximately 93% support in 2023 (including abstentions and excluding broker non-votes).
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2024 Proxy Statement
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7
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By 2030, we aim to improve the lives of at least 10 million people through health and wellness programs, diversity and inclusion initiatives, improved workplace quality and philanthropic efforts that improve local communities.
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By 2030, we aim to reduce direct greenhouse gas emissions by 50% and indirect emissions by 30% to align with science-based targets, reduce water use by at least 25%, use 100% renewable electricity in Company-owned operations and bring landfill waste to zero.
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By 2025, we aim to eliminate all non-commonly recyclable or compostable single-use plastics and reduce packaging weight by at least 25%. By 2030, we aim to move to 100% recycled/degradable polyester and sustainable cotton.
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PEOPLE—By focusing on comfort (comforting people during times of need, crisis and uncertainty), inclusion (advancing diversity, equity and inclusion through education and youth sports), and health (creating healthier communities by bringing medical care to those in need), we promote our value of “do what’s right,” which underpins all of our sustainability efforts and corporate responsibility.
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PLANET—By focusing on climate, water, wastewater and chemical management, we aim to reduce our greenhouse gas and water footprint, both in production of raw materials and throughout the entire manufacturing process, while advancing energy-efficiency practices across our operations.
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PRODUCT—By focusing on more sustainable fibers, particularly cotton and polyester, we aim to reduce the impact of the products we make and meet the needs of consumers who increasingly desire sustainable products. By focusing on packaging improvements, we are able to reduce the weight of corrugate, paper board, and other materials while helping deliver products safely to consumers in a low-carbon, low-waste economy, all while generating cost savings. We continue to improve our manufacturing steps to reduce waste overall, find ways to repurpose certain waste streams, and establish local recycling partnerships to divert waste from landfills.
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2024 Proxy Statement
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8
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2023 Key Accomplishments
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More than $10M total sustainability 2023 savings
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Met or exceeded most of our 2023 sustainability milestones
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Received SBTi approval of our 2030 Scope 1, 2 & 3 GHG emission reduction goals
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Received A- score in CDP Climate Change Report and Water Security Report
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Awarded 14th consecutive Energy Star Sustained Excellence/Partner of the Year Award
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2024 Outlook
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Continue philanthropic efforts in the themes of comfort, inclusion and health
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Focus on our Scope 3 greenhouse gas inventory and reduction of Scope 3 impacts
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Continue our progress on packaging and waste reduction
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Drive consumer and other stakeholder awareness of our progress on our sustainability initiatives
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Our Governance and Nominating Committee
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Our Talent and Compensation Committee
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Our Audit Committee
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Coordinates oversight of our ESG strategy and communications, as well as our corporate governance policies and practices; also assesses whether relevant ESG risks, opportunities and disclosure obligations are regularly reviewed and considered by the appropriate Board committees.
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Is primarily responsible for the “People” pillar of our ESG strategy, which includes oversight of diversity, equity and inclusion, talent development, labor management supply chain labor standards, and health and safety.
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Has primary responsibility for the Planet and Product pillars of our ESG strategy, including the aspects of our ESG strategy designed to address risks and strategies related to climate change, water usage, waste management, greenhouse gas emissions, chemical management, raw material sourcing product, packaging, and product liability.
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2024 Proxy Statement
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9
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2024 Proxy Statement
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10
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Achieved goal to return gross margin to pre-inflation level by end of 2023. Entering 2023, we set a goal to exit the year with gross margin returning to the high 30% range. We exceeded that goal and reached gross margin of 38.1% in fourth-quarter 2023, which was 400 basis points over prior year and was 570 basis points above first-quarter 2023.
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Re-igniting our Innerwear business behind consumer-focused initiatives. Our U.S. Innerwear business gained market share in both its men’s and women’s businesses in 2023. These gains were driven by key consumer-led innovations, including the multi-category launch of our Hanes Originals products and the launch of Maidenform M, permanent retail space gains, and increased brand marketing investments, as well as improved on-shelf product availability. Revenue from new product innovation was up more than 40% in 2023. For 2024, the Company has a robust pipeline of innovation launches spanning its global brand portfolio, including new products within Hanes, Bonds and Bali.
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Cost reduction. We reduced SG&A expenses in 2023 compared to prior year, largely driven by cost savings initiatives. For 2024, we remain committed to continued cost reduction, and we believe we’re well positioned for continued margin improvement.
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Exceeded goals of generating $500 million of operating cash flow and paying down $400 million of debt. In 2023, we generated $562 million of cash from operations driven by various initiatives to unlock working capital. Through disciplined inventory management, we reduced inventory 31%, or $612 million, compared to prior year. Through strong positive cash generation, we also paid down paid down over $500 million of debt in 2023, exceeding our goal by over $100 million. We also further strengthened our liquidity position to more than $1.3 billion as of the end of 2023.
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Initiated evaluation of strategic alternatives for the global Champion business. As part of our ongoing effort to maximize shareholder value, in September 2023, we announced that we initiated an evaluation of strategic alternatives for our global Champion business, including, among others, a potential sale or continuing to operate the business as part of HanesBrands.
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2024 Proxy Statement
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11
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Reward financial and operational performance
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Place a significant portion of compensation at risk based on achievement of performance goals
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Align the interests of NEOs with those of our stockholders
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Attract, retain and incentivize highly skilled and performance-oriented talent
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Compensation Element
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Key Features
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Objectives
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Base Salary
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Fixed compensation component
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Reflects the individual responsibilities, performance and experience of each NEO
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Provides a foundation of cash compensation for the fulfilment of fundamental job responsibilities
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Annual Incentive Plan (“AIP”) Awards
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Performance-based cash compensation
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Payout determined based on Company performance against pre-established targets
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Motivates performance by linking compensation to the achievement of key annual objectives
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Long-Term Incentive Program (“LTIP”) Awards
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Performance-based and at-risk, time-vested compensation
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Performance Share Awards (“PSAs”) (50% of LTIP opportunity)
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Vesting on the third anniversary of the grant date
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Number of shares received ranges from 0% to 200% of the number of units granted based on fiscal 2023-2025 Company performance against pre-established targets
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Restricted Stock Unit Awards (“RSUs”) (50% of LTIP opportunity)
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Ratable vesting over a three-year service period
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Encourages behavior that enhances the long-term growth, profitability and financial success of the Company, aligns executives’ interests with our stockholders and supports retention objectives
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2024 Proxy Statement
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12
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2024 Proxy Statement
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13
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2024 Proxy Statement
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14
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2024 Proxy Statement
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15
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2024 Proxy Statement
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17
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Stephen B. Bratspies
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Age: 56
Director Since: 2020 Committee Membership: None |
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Experience
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Chief Executive Officer, Hanesbrands Inc. (2020 to current)
•
Chief Merchandising Officer, Walmart, Inc. (2015 to 2020); Executive Vice President, Food (2014 to 2015); Executive Vice President, General Merchandise (2013 to 2014); Various Executive Positions (2005 to 2013)
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Chief Marketing Officer, Specialty Brands (2003 to 2005)
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Various Executive Positions, PepsiCo, Inc.’s Frito-Lay, North America Division (1996 to 2003)
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Management Consultant, A.T. Kearney (1994 to 1996)
Education
•
M.B.A., The Wharton School of Business, University of Pennsylvania
•
B.A., Franklin & Marshall College
Reason for Nomination: Mr. Bratspies has extensive experience and knowledge with Hanesbrands, including its business and strategic objectives and goals. Leveraging his multiple senior leadership positions in the industry, Mr. Bratspies brings collective experience in corporate risk management, financial management, marketing, global sourcing, strategic planning, consumer products, and a key understanding of large publicly traded company business issues.
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2024 Proxy Statement
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18
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Geralyn R. Breig
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Age: 61
Director Since: 2018 Committee Membership: Governance and Nominating (Chair), Audit
Independent Director
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Experience
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President, Revlon North America (2023 to current)
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Principal, Twin Bridges Consulting Group (2021 to current)
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Chief Executive Officer, AnytownUSA.com (2016 to 2021)
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President, Clarks (C&J Clark Ltd), Americas Region (2014 to 2016)
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President, Avon North America (division of Avon Products Inc.) (2008 to 2011); Senior Vice President and Brand President, Avon Global Marketing Business Unit (2005 to 2008)
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President, Godiva Chocolatier International (2002 to 2005)
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Various Executive Positions, Campbell Soup Company (1995 to 2002)
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Various Leadership Positions, Kraft Foods, Inc. (1986 to 1995)
•
Various Leadership Positions, The Procter & Gamble Company, Inc. (1984 to 1986)
Other Public Company Boards
•
1800flowers.com (2012 to 2022)
Other
•
Welch Foods Inc (2013 to 2022)
Education
•
B.S., The Wharton School of Business, University of Pennsylvania
Reason for Nomination: Ms. Breig has served in various senior leadership positions in a wide variety of international retailers and consumer product manufacturers, including some of the largest such companies in the world. Her experience in both the consumer manufacturing and retailing industries, including deep insights into sales, marketing and operations, is a strong fit for the Company’s business and primary customer base. Through her senior executive positions and prior public company board service, Ms. Breig has developed expertise in digital marketing strategy, corporate risk management, financial management, and corporate governance, which contribute to the shared knowledge and expertise of our Board of Directors in these functions. Her strong experience in governance and risk oversight enable her to serve effectively as Chair or the Governance and Nominating Committee.
|
|
|
|
| |
2024 Proxy Statement
|
| |
19
|
|
|
Colin Browne
|
| ||||||
|
Age: 59
Director Since: 2023 Committee Membership: Audit
Independent Director
|
| |
Experience
•
Chief Operating Officer, Under Armour, Inc. (2020 to 2023; Interim President and Chief Executive Officer (2022 to 2023); Chief Supply Chain Officer (2017 to 2020); President Global Sourcing (2016 to 2017)
•
Vice President and Managing Director — Asia Sourcing, VF Corporation (2013 to 2016); Vice President of Sourcing — Footwear (2011 to 2013)
•
Executive Vice President of Footwear and Accessories, Li & Fung USA (2010 to 2011)
•
Chief Executive Officer — Asia, Pentland Brands PLC (2006 to 2010)
Other
•
Director, Worldly (formerly Higg) (2023 to current)
•
Co-Chairman, Digital Supply Chain Institute (2020 to current)
Reason for Nomination: Mr. Browne’s career as an executive officer at prominent apparel, retail and supply chain companies enables him to bring deep insights into oversight of the Company’s business. Through his experience, Mr. Browne contributes significant expertise in the areas of supply chain management, logistics, sourcing, and distribution, as well as operational efficiencies. His valuable experiences in senior positions at public companies also position him to advise senior management on many elements of the Company’s operations.
|
|
|
|
| |
2024 Proxy Statement
|
| |
20
|
|
|
Natasha C. Chand
|
| ||||||
|
Age: 50
Director Since: 2023 Committee Membership: Governance and Nominating, Talent and Compensation
Independent Director
|
| |
Experience
•
Principal, NoBo, LLC (2022 to current)
•
Co-Founder and Leader, Softlines Private Brands, Amazon.com, Inc. (2016 to 2021); Director & Category Leader, Sporting Goods (2014 to 2016)
•
Executive Vice President of Menswear, Target Australia Pty Ltd (2012 to 2014)
•
Various Leadership Positions, Levi Strauss & Co. (2005 to 2012)
Other
•
Independent Board Director, Fair Trade USA (2022 to current)
Education
•
M.B.A., Stanford University
•
H.B.A., University of Western Ontario
Reason for Nomination: Ms. Chand has held a variety of senior leadership positions with a focus on consumer business and technology. Her experience in these positions sharpened her expertise in the areas of building, leading and scaling consumer brands. Ms. Chand also has significant experience in the operations of retail and apparel companies, enabling her to bring deep insights into key elements of the Company’s core business. Her strong understanding of matters in the areas of global business operations and strategy development contribute to the Board of Directors’ oversight of these important areas of the Company’s operations.
|
|
|
|
| |
2024 Proxy Statement
|
| |
21
|
|
|
Mark A. Irvin
|
| ||||||
|
Age: 61
Director Since: 2023 Committee Membership: Governance and Nominating
Independent Director
|
| |
Experience
•
Executive Vice President and Chief Supply Chain Officer, Best Buy Co. Inc. (2022 to current); Chief Inclusion, Diversity and Talent Officer (2020 to 2022); Various Senior Supply Chain Leadership Positions (2013 to 2020)
•
Distribution Leadership Positions, Target Corporation (2003 to 2013)
•
Served in the U.S. Army as Lieutenant/Captain (1984 to 1992)
Other
•
Director, Best Buy Foundation
•
Director, Black Men Teach
•
National Retail Federation (NRF) Foundation Board
Education
•
M.B.A., Franklin University
•
B.A., Fisk University
Reason for Nomination: Mr. Irvin has served in various leadership positions with large, omnichannel retailers, which allows him to provide deep insight into this critical component of our customer base. With expertise developed through his senior executive positions with some of the nation’s largest retails, Mr. Irvin contributes to the Board of Directors’ collective proficiency in the areas of supply chain procurement, logistics, transportation, and distribution, all critical elements of the Company’s business. Mr. Irvin also brings to the Board of Directors extensive experience in the areas of human capital management, inclusion and diversity, and corporate governance, key areas of focus relating to our employee base and executive leadership.
|
|
|
|
| |
2024 Proxy Statement
|
| |
22
|
|
|
James C. Johnson
|
| ||||||
|
Age: 71
Director Since: 2006 Committee Membership: Talent and Compensation (Chair), Governance and Nominating
Independent Director
|
| |
Experience
•
General Counsel, Loop Capital Markets LLC (2010 to 2014)
•
Vice President and Assistant General Counsel, Boeing Commercial Airplanes, The Boeing Company (2007 to 2009); Vice President, Corporate Secretary and Assistant General Counsel, The Boeing Company (1999 to 2007)
•
Corporate Secretary and Assistant General Counsel, Northrop Grumman Corporation (1988 to 1998)
•
Staff Attorney, The U.S. Securities and Exchange Commission, Los Angeles Regional Office (1978 to 1980)
Other Public Company Boards
•
Energizer Holdings, Inc. (2015 to current)
•
Edgewell Personal Care Company (2013 to current)
•
Ameren Corporation (2005 to current)
Other
•
Member, Board of Advisors, University of Pennsylvania, College of Arts and Sciences
•
Chairman, External Advisory Board, University of Pennsylvania, College of Arts and Sciences
Education
•
J.D., University of Pennsylvania
•
B.A., University of Pennsylvania
•
Certificate of Cybersecurity Oversight, NACD
Reason for Nomination: Mr. Johnson has served in senior executive positions in the legal departments of some of the nation’s most prominent corporations. Through these roles and his extensive public company board service, including as chairman of compensation and governance committees, he has developed extensive experience and qualifications in the areas of corporate risk management, staff and legal affairs, executive compensation, and corporate governance policies and programs, which enable him to serve effectively as Chair of the Talent and Compensation Committee.
|
|
|
|
| |
2024 Proxy Statement
|
| |
23
|
|
|
John G. Mehas
|
| ||||||
|
Age: 60
Director Since: 2023 Committee Membership: Talent and Compensation
Independent Director
|
| |
Experience
•
Chief Executive Officer, Vineyard Vines, LLC (2022 to current)
•
Chief Executive Officer, Victoria’s Secret Lingerie (2019 to 2020)
•
President, Tory Burch, LLC (2017 to 2019)
•
Group President, Ralph Lauren Kids (2015 to 2017)
•
Chief Executive Officer and President, Club Monaco (2001 to 2017)
Other
•
Director, Vineyard Vines, LLC (2022 to current)
Education
•
B.A., University of Toledo
Reason for Nomination: Mr. Mehas has held senior executive leadership positions at several of the world’s most iconic and recognizable apparel brands and consumer goods companies, which positions him to contribute to the oversight of the Company’s business and to advise senior management on key elements of the Company’s operations. Mr. Mehas’s extensive senior leadership skills and chief executive officer experience at other consumer-facing companies further enable him to contribute in the areas of strategic planning, financial management, corporate risk management and corporate governance. In addition to his strong skillset and experience, Mr. Mehas has been nominated for election to the Company’s Board of Directors pursuant to a cooperation agreement between the Company and Barington Capital Group, L.P. and certain of its affiliates.
|
|
|
|
| |
2024 Proxy Statement
|
| |
24
|
|
|
Franck J. Moison
|
| ||||||
|
Age: 70
Director Since: 2015 Committee Membership: Audit, Talent and Compensation
Independent Director
|
| |
Experience
•
Vice Chairman, Colgate-Palmolive Company (2016 to 2018); Chief Operating Officer, Emerging Markets & Business Development (2010 to 2016); President, Global Marketing, Supply Chain & R&D (2007 to 2010); President, Western Europe, Central Europe and South Pacific (2005-2007); Various Executive Positions since 1978
Other Public Company Boards
•
SES imagotag, a French public company (2020 to current)
•
United Parcel Service, Inc. (2017 to current)
Other
•
Chairman, International Advisory Board, EDHEC Business School (Paris, London, Singapore)
•
Member, International Board, McDonough School of Business, Georgetown University
Education
•
Masters in Marketing, EDHEC Business School in France
•
M.B.A., University of Michigan
•
Executive M.B.A. Program, Stanford University
Reason for Nomination: Mr. Moison’s 40-year career at Colgate-Palmolive, one of the nation’s leading consumer products companies, including many senior executive leadership positions, enabled him to develop extensive experience in the industry in which the Company operates. His expertise in the areas of global business operations and supply chain management contribute to the Board of Directors’ oversight of these critical areas of the Company’s operations. His executive experience and service as a director of other international public companies contributes to the Board of Directors’ perspectives on areas of corporate governance, financial management and risk management.
|
|
|
|
| |
2024 Proxy Statement
|
| |
25
|
|
|
Robert F. Moran
|
| ||||||
|
Age: 73
Director Since: 2013 Committee Membership: Audit (Chair), Talent and Compensation
Independent Director
Audit Committee Financial Expert
|
| |
Experience
•
Chief Executive Officer, UNATION, Inc. (2021 to current)
•
Chairman, GNC Holdings, Inc. (2017 to 2018); Interim Chief Executive Officer (2016 to 2017)
•
Chairman of the Board, PetSmart, Inc. (2009 to 2013); Chief Executive Officer (2009 to 2013); Chief Operating Officer (2001 to 2009); President, North American Stores (1999 to 2001)
•
President, Toys “R” Us (Canada) Ltd. (1998 to 1999)
•
President & Chief Executive Officer, Sears de Mexico (1996 to 1998)
•
Executive Vice President & Chief Financial Officer, Sears de Mexico (1995)
Other Public Company Boards
•
GNC Holdings, Inc. (2013 to 2019)
•
PetSmart, Inc. (2009 to 2013)
•
Payless, Inc. (2005 to 2012)
Other
•
UNATION, Inc. (2021 to current)
•
The Fressnapf Group (2013 to current)
•
Member, Board of Trustees, University of Villanova
Education
•
B.S., Villanova University
Reason for Nomination: Mr. Moran’s career as a senior executive at a variety of large consumer product and retail companies allows him to contribute his knowledge and experience to those elements of the Company’s business. Mr. Moran’s service as chief executive officer and chairman of a number of these corporations, in addition to his chief financial officer experience, provides him with deep senior level experience that he can share with the Company’s senior management team and Board of Directors across the full range of operational, management and governance issues that the Company may face. His expertise in corporate risk management and oversight as well as financial management enable him to serve effectively as Chair of the Audit Committee.
|
|
|
|
| |
2024 Proxy Statement
|
| |
26
|
|
|
William S. Simon
|
| ||||||
|
Age: 64
Director Since: 2021 Committee Membership: None
Independent Director
Chairman of the Board
|
| |
Experience
•
Executive Advisor, K.K.R. & Co (2015 to current)
•
President, WSS Venture Holdings LLC (2014 to current)
•
Executive Vice President, Wal-Mart Stores, Inc. (2006 to 2014); President and CEO, Walmart US (2010 to 2014); Executive Vice President and COO (2007 to 2010); Executive Vice President, Professional Services and New Business Development (2006 to 2007)
•
Various executive positions, Brinker International, Diageo North America, Inc., and Cadbury Schweppes plc. (1990 to 2006)
Other Public Company Boards
•
Pitney Bowes Inc. (2024 to current)
•
Darden Restaurants, Inc. (2012 to 2014, 2014 to current)
•
Equity Distribution Acquisition Corp. (2020 to 2022)
•
GameStop Corp. (2020 to 2021)
•
Academy Sports and Outdoors, Inc. (2020 to 2021)
•
Anixter International, Inc. (2019 to 2020)
•
Chico’s FAS, Inc. (2016 to 2021)
Other
•
Secretary of the Florida Department of Management Services (2003-2005)
•
U.S. Navy and Naval Reserves (1980-2005)
Education
•
M.B.A., University of Connecticut
•
B.A., University of Connecticut
Reason for Nomination: Mr. Simon has held senior executive leadership positions with a variety of large, global direct-to-consumer retailers and consumer goods companies, which allows him to contribute to the oversight of the Company’s business and to advise senior management on key elements of the Company’s operations. Mr. Simon’s extensive senior leadership skills and deep experience as a public company director at other consumer-facing companies position him to contribute in the areas of strategic planning, financial management, corporate risk management and corporate governance. His many top leadership roles and relevant public company board service enable him to serve and lead effectively as Chairman of the Board.
|
|
|
|
| |
2024 Proxy Statement
|
| |
27
|
|
| |
•
personal and professional ethics and integrity
•
diversity among the existing Board members, including race, ethnicity, and gender
•
specific business experience and competence, including:
◦
experience in and understanding of business issues applicable to large publicly traded companies, and
◦
whether the candidate has served in policy-making roles in business, government, education, or other areas that are relevant to our global activities
•
financial acumen, including whether the candidate, through education or experience, understands financial matters and the preparation and analysis of financial statements
•
the ability to represent our stockholders as a whole
•
professional and personal accomplishments, including involvement in civic and charitable activities
•
experience with enterprise level risk management
•
relevant education
•
a willingness to devote sufficient time to fulfill his or her duties and responsibilities effectively and a commitment to service on the Board of Directors
|
|
|
|
| |
2024 Proxy Statement
|
| |
28
|
|
|
|
| |
2024 Proxy Statement
|
| |
29
|
|
|
The Governance and Nominating Committee
|
| | |
The Talent and Compensation Committee
|
|
|
•
Primary responsibility for the oversight of Board processes and corporate governance related risks. Leads in coordinating the Board’s governance and oversight of ESG risks, opportunities and disclosure obligations.
|
| | |
•
Primary responsibility for the oversight of risks associated with our compensation practices and policies, including risks, opportunities and disclosure obligations related to the Company’s:
◦
culture,
◦
talent,
◦
recruitment,
◦
retention, and
◦
employee engagement programs.
|
|
|
|
| ||||
|
The Audit Committee
|
| ||||
|
•
Primary responsibility for oversight of risk assessment and risk management, including risks, opportunities and disclosure obligations related to environmental, sustainability, cybersecurity and other technology issues.
•
Management of Hanesbrands prepares, and the Audit Committee reviews and discusses, an annual assessment of our risks on an enterprise-wide basis. Our enterprise risk management program is designed to bring to the Audit Committee’s attention our most material risks for evaluation, including strategic, operational, financial, sustainability, cybersecurity, legal and regulatory risks.
•
As part of our enterprise risk management program, we have begun and will continue to evaluate the actual and potential impacts of climate-related risks and opportunities on the Company’s business, strategy, and financial planning in accordance with applicable laws and regulations and the frameworks developed by the Taskforce on Climate-Related Financial Disclosures (TCFD) and Sustainability Accounting Standards Board (SASB) frameworks.
•
Additionally, in furtherance of the Audit Committee’s oversight of cybersecurity risks, the committee receives regular reports from our Chief Information Officer and Chief Information Security Officer regarding technology and cybersecurity updates.
|
|
|
|
| |
2024 Proxy Statement
|
| |
30
|
|
|
|
| |
2024 Proxy Statement
|
| |
31
|
|
|
|
| |
William S. Simon
Chairman of the Board
|
| | |
|
| |
Stephen B. Bratspies
Chief Executive Officer
|
|
|
FULLY INDEPENDENT AUDIT, TALENT AND COMPENSATION AND GOVERNANCE AND NOMINATING COMMITTEES
|
| |||||||||||||||||
|
|
| |
Robert F. Moran
Chair of the Audit
Committee |
| | |
|
| |
James C. Johnson
Chair of the Talent
and Compensation Committee |
| | |
|
| |
Geralyn R. Breig
Chair of the
Governance and Nominating Committee |
|
|
|
| |
2024 Proxy Statement
|
| |
32
|
|
| |
•
presides at all meetings of the Board
•
advises the Corporate Secretary regarding the agendas for meetings of the Board of Directors
•
calls meetings of non-management and/or independent directors, with appropriate notice
•
advises the Board on the retention of advisors and consultants who report directly to the Board of Directors
•
advises the Chief Executive Officer, as appropriate, on issues discussed at executive sessions of non-management and/or independent directors
•
reviews with the Chief Executive Officer together with Talent and Compensation Committee Chairman, the non-management directors’ annual evaluation of his performance
•
serves as principal liaison between the non-management and/or independent directors, as a group, and the Chief Executive Officer, as necessary
•
serves as principal liaison between the Board of Directors and our stockholders, as appropriate, after consultation with the Chief Executive Officer
•
selects an interim chair or lead independent director to preside over meetings at which he cannot be present
|
|
|
|
| |
2024 Proxy Statement
|
| |
33
|
|
|
AUDIT COMMITTEE
|
| |||
|
Members:
Robert F. Moran, Chair
Geralyn R. Breig
Colin Browne
Franck J. Moison
|
| |
The Audit Committee is responsible for assisting the Board of Directors in fulfilling its oversight of:
•
the integrity of our financial statements, financial reporting process and systems of internal accounting and financial controls
•
our compliance with legal and regulatory requirements
•
the independent auditors’ qualifications and independence
•
the performance of our internal audit function and independent auditor
•
the aspects of our ESG strategy designed to address risks and strategies related to environmental and sustainability initiatives
As part of these responsibilities, the Audit Committee:
•
appoints, retains and oversees the Company’s independent auditor, subject to stockholder ratification
•
preapproves all audit and non-audit engagements and related fees and terms with the Company’s independent auditor
•
oversees and reviews the performance of the Company’s internal audit function, which includes periodic meeting in executive session with the head of the Company’s internal audit function
•
reviews and discusses management’s evaluation of the adequacy of disclosure controls and procedures and internal control over financial reporting
•
reviews with the independent auditor and management all major accounting policy matters involved in the preparation of interim and annual financial reports with corporate management and any deviations from prior practice
•
reviews and discusses the Company’s annual audited financial statements and quarterly financial statements with management and the Company’s independent registered public accounting firm
•
annually recommends, based on the reviews performed by the Audit Committee, that the Board include the annual financial statements in the annual report on Form 10-K
•
reports to the Board any issues that arise with respect to the quality or integrity of the Company’s publicly reported financial statements and the Company’s compliance with legal or regulatory requirements
•
oversees, and receives frequent updates regarding, the Company’s Global Ethics and Compliance program
The Audit Committee is also responsible for discussing risk assessment and risk management policies, including significant financial risk exposures and risks, opportunities and disclosure obligations related to environmental and sustainability issues, as well as cybersecurity and other technology risks. In connection with this oversight responsibility, the Audit Committee discusses and reviews the steps management has taken to monitor, control and report such exposures.
|
|
|
|
| |
2024 Proxy Statement
|
| |
34
|
|
|
TALENT AND COMPENSATION COMMITTEE
|
| |||
|
Members:
James C. Johnson, Chair
Natasha C. Chand
John G. Mehas
Franck J. Moison
Robert F. Moran
|
| |
The Talent and Compensation Committee is responsible for assisting the Board of Directors in discharging its responsibilities relating to the compensation of our executive officers and the Chief Executive Officer performance evaluation process. The Talent and Compensation Committee prepares a report on executive compensation that is included in our Proxy Statement relating to our Annual Meeting of Stockholders. This report is provided under “Talent and Compensation Committee Report” on page 44.
The Talent and Compensation Committee is also responsible for:
•
reviewing and approving the total compensation philosophy covering our executive officers and other key executives and periodically reviewing an analysis of the competitiveness of our total compensation practices in relation to those of our peer group
•
with respect to our executive officers other than the Chief Executive Officer, reviewing and approving base salaries, target annual incentive award opportunities, the applicable standards of performance to be used in incentive compensation plans and the grant of equity incentives
•
reviewing and approving the adoption or revision of any clawback policy allowing the Company to recoup incentive compensation received by employees, and administering the policy as it applies to executive officers
•
recommending changes in non-employee director compensation to the Board of Directors
•
reviewing proposed stock incentive plans, other long-term incentive plans, stock purchase plans and other similar plans, and all proposed changes to such plans
•
oversight of diversity, equity and inclusion, talent development, labor management supply chain labor standards, and health and safety
•
reviewing the results of any stockholder advisory votes regarding our executive compensation and recommending to the Board how to respond to such votes
•
recommending to the Board whether to have an annual, biennial or triennial advisory stockholder vote regarding executive compensation
The Chief Executive Officer’s compensation is approved by the independent members of the Board of Directors, upon the Talent and Compensation Committee’s recommendation.
For information regarding the ability of the Talent and Compensation Committee to delegate its authority, and the role of our executive officers and the Talent and Compensation Committee’s compensation consultant in determining or recommending the amount or form of executive and director compensation, see the Compensation Discussion and Analysis that begins on page 45.
|
|
|
|
| |
2024 Proxy Statement
|
| |
35
|
|
|
GOVERNANCE AND NOMINATING COMMITTEE
|
| |||
|
Members:
Geralyn R. Breig, Chair
Natasha C. Chand
Mark A. Irvin
James C. Johnson
|
| |
The Governance and Nominating Committee is responsible for:
•
identifying individuals qualified to serve on the Board of Directors, consistent with criteria approved by the Board of Directors
•
recommending that the Board of Directors select a slate of director nominees for election by our stockholders at our annual meeting of stockholders, in accordance with our charter and bylaws and with Maryland law
•
recommending candidates to the Board of Directors to fill vacancies on the Board or on any committee of the Board in accordance with our charter and bylaws and with Maryland law
•
evaluating and recommending to the Board of Directors a set of corporate governance policies and guidelines to be applicable to the Company
•
re-evaluating periodically such policies and guidelines for the purpose of suggesting amendments to them as appropriate
•
overseeing and reviewing the Company’s ESG activities and programs, and reviewing our public ESG disclosures and communications
•
overseeing annual Board and committee self-evaluations in accordance with NYSE listing standards
In addition, the Governance and Nominating Committee receives updates on the Company’s sustainability and Global Ethics and Compliance programs, which includes information on our progress towards achieving our long-term sustainability goals.
|
|
|
|
| |
2024 Proxy Statement
|
| |
36
|
|
|
2023 Annual Director Compensation
|
| | |
Additional Cash Retainers ($)
|
| ||||||||||||
|
Board Service
|
| |
Chair
|
| |
Member*
|
| ||||||||||
|
|
| | |
Independent Chairman of the Board (Mr. Nelson)
|
| | | | 175,000(1) | | | | | | | | |
| Committees: | | | | | | | | | | | | | | ||||
|
•
Audit(2)
|
| | | | 25,000 | | | | | | 5,000 | | | ||||
|
•
Talent and Compensation(3)
|
| | | | 25,000 | | | | | | 2,500 | | | ||||
|
•
Governance and Nominating(4)
|
| | | | 25,000 | | | | | | 2,500 | | | ||||
| | | | | | |
|
Name
|
| |
Fees Earned or
Paid in Cash ($)(1)(2) |
| |
Stock Awards
($)(2)(3) |
| |
All Other
Compensation ($) |
| |
Total
($) |
|
|
Ronald L. Nelson
|
| |
$279,874
|
| |
$154,999
|
| |
$—
|
| |
$434,873
|
|
|
James C. Johnson
|
| |
135,000
|
| |
154,999
|
| |
—
|
| |
289,999
|
|
|
Robert F. Moran
|
| |
135,000
|
| |
154,999
|
| |
—
|
| |
289,999
|
|
|
Ann E. Ziegler
|
| |
135,000
|
| |
154,999
|
| |
—
|
| |
289,999
|
|
|
Geralyn R. Breig
|
| |
117,500
|
| |
154,999
|
| |
—
|
| |
272,499
|
|
|
|
| |
2024 Proxy Statement
|
| |
37
|
|
|
Name
|
| |
Fees Earned or
Paid in Cash ($)(1)(2) |
| |
Stock Awards
($)(2)(3) |
| |
All Other
Compensation ($) |
| |
Total
($) |
|
|
Franck J. Moison
|
| |
117,500
|
| |
154,999
|
| |
—
|
| |
272,499
|
|
|
William S. Simon
|
| |
115,000
|
| |
154,999
|
| |
—
|
| |
269,999
|
|
|
Cheryl K. Beebe
|
| |
115,000
|
| |
154,999
|
| |
—
|
| |
269,999
|
|
|
Mark A. Irvin(4)
|
| |
103,125
|
| |
142,085
|
| |
—
|
| |
245,210
|
|
|
Bobby J. Griffin(5)
|
| |
38,333
|
| |
51,666
|
| |
—
|
| |
90,000
|
|
|
Colin Browne(6)
|
| |
18,333
|
| |
—
|
| |
—
|
| |
18,333
|
|
|
Natasha C. Chand(6)
|
| |
18,333
|
| |
—
|
| |
—
|
| |
18,333
|
|
|
John G. Mehas(6)
|
| |
18,333
|
| |
—
|
| |
—
|
| |
18,333
|
|
|
|
| |
2024 Proxy Statement
|
| |
38
|
|
|
|
| |
2024 Proxy Statement
|
| |
39
|
|
| |
•
close alignment of PricewaterhouseCoopers’ global footprint and resources with our geographies and worldwide business activities
•
robust independence controls and objectivity
•
length of service of PricewaterhouseCoopers
•
PricewaterhouseCoopers’ high audit quality, performance, and results
•
benefits of longer-tenured auditor
•
positive reputation of PricewaterhouseCoopers
•
PricewaterhouseCoopers’ deep institutional company-industry knowledge, experience, and expertise
•
non-audit service projects performed by other multinational public accounting and auditing firms
|
|
|
|
| |
2024 Proxy Statement
|
| |
40
|
|
| |
•
the integrity of the Company’s financial statements, financial reporting process and systems and internal control over financial reporting
•
the Company’s compliance with legal and regulatory requirements
•
the independent auditor’s qualifications and independence
•
the performance of the Company’s internal audit function and independent auditor
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•
reviewed and discussed with management and PricewaterhouseCoopers the 2023 Financial Statements and audit of internal control over financial reporting
•
discussed with PricewaterhouseCoopers the matters required to be discussed by Auditing Standard No. 1301, Communications with Audit Committees, as adopted by the Public Company Accounting Oversight Board
•
received the written disclosures and the letter from PricewaterhouseCoopers required by standards of the Public Company Accounting Oversight Board regarding their communications with the Audit Committee concerning independence and discussed with PricewaterhouseCoopers their independence from Hanesbrands
•
met with the senior members of the Company’s financial management team at each regularly scheduled meeting
•
reviewed and discussed with management and PricewaterhouseCoopers the Company’s annual and quarterly reports on Form 10-K and Form 10-Q prior to filing with the SEC
•
received periodic updates from management regarding management’s process to assess the adequacy of the Company’s internal control over financial reporting and management’s assessment of the effectiveness of the Company’s internal control over financial reporting
•
reviewed and discussed with management, the internal auditors and PricewaterhouseCoopers, as appropriate, the plans for, and the scope of, the Company’s annual audit and other examinations
•
met in periodic executive sessions with certain members of management, the internal auditors and PricewaterhouseCoopers to discuss the results of their examinations, their assessments of the Company’s internal control over financial reporting and the overall integrity of the Company’s financial statements
•
reviewed and discussed with management the Company’s major financial risk exposures, the steps management has taken to monitor and control these exposures and the Company’s enterprise risk management activities generally
•
reviewed and discussed with management the overall adequacy and effectiveness of the Company’s policies with respect to risk assessment and risk management, including significant financial risk exposures and the steps management has taken to monitor, control and report such exposures
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2024 Proxy Statement
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Robert F. Moran, Chair
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Geralyn R. Breig
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Colin Browne
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Franck J. Moison
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Fiscal Year Ended
December 30, 2023 |
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Fiscal Year Ended
December 31, 2022 |
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Audit fees
|
| | | $ | 6,897,721 | | | | | $ | 5,728,496 | | |
|
Audit-related fees
|
| | | | 79,035 | | | | | | 121,288 | | |
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Tax fees
|
| | | | 156,986 | | | | | | 111,766 | | |
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All other fees
|
| | | | 2,000 | | | | | | 2,900 | | |
|
Total fees
|
| | | $ | 7,135,742 | | | | | $ | 5,964,450 | | |
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2024 Proxy Statement
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•
focused on aligning senior management and stockholder interests in a simple, quantifiable, and unifying manner
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| |
•
necessary to attract, retain and motivate the executive team to support the attainment of our business strategy and operating imperatives
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•
competitive in comparison to our peer group companies
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2024 Proxy Statement
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James C. Johnson, Chair
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Natasha C. Chand
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John G. Mehas
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Franck J. Moison
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Robert F. Moran
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2024 Proxy Statement
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WHAT YOU WILL FIND IN THIS COMPENSATION DISCUSSION AND ANALYSIS
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Page
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Executive Summary
We highlight the key items that are discussed in this Compensation Discussion and Analysis including our business strategies and priorities, as well as fiscal 2023 performance, leadership changes, and program updates. |
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47
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This Compensation Discussion and Analysis focuses on the compensation for our Chief Executive Officer, our Chief Financial Officer, and our three other most highly compensated executive officers serving at the end of 2023:
Stephen B. Bratspies
Chief Executive Officer
M. Scott Lewis
Chief Financial Officer and Chief Accounting Officer
Joseph W. Cavaliere
President, Innerwear – Global
Vanessa LeFebvre
President, Activewear – Global
Michael E. Faircloth
EVP, Supply Chain – Global
This Compensation Discussion and Analysis also describes the compensation of our former Chief Financial Officer, Michael P. Dastugue, who resigned on February 28, 2023. Collectively, these executive officers are referred to as our “NEOs.”
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Executive Compensation Philosophy & Framework
We describe the overarching structure of our executive compensation program and the objectives and principles that guide our compensation decisions. |
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49
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Elements of Fiscal 2023 Compensation
We outline the key elements of our NEOs’ compensation for fiscal 2023 and the mix of compensation elements making up the total target direct compensation for the NEOs. |
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50
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Fiscal 2023 Performance Metrics
We detail the performance metrics selected by the Committee for 2023 awards under our Annual Incentive Plan (“AIP”) and Long-Term Incentive Plan (“LTIP”), and how those metrics align with stockholder interests. |
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52
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Fiscal 2023 Executive Compensation
We discuss how the Committee makes compensation decisions, including the use of market data, metrics, and targets, and then provide details on the Committee’s decisions with respect to each element of compensation for fiscal 2023 (including why significant compensation decisions were made), which places in context the information contained in the executive compensation tables that follow the Compensation Discussion and Analysis. We also provide information about post-employment compensation and certain benefit plans available to our NEOs. |
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53
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Additional Information on Executive Compensation
We provide additional information about our executive compensation program, including the results of our 2023 “say on pay” vote, and other compensation-related policies and practices. |
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2024 Proxy Statement
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We exceeded year-end goals with respect to four key 2023 performance metrics, including gross margin, inventory, operating cash flow and debt reduction. Despite a challenging sales environment, we saw positive inflection with respect to margins and leverage.
◦
Fourth quarter gross margin of 38.1% increased 400 basis points compared to prior year; adjusted gross margin of 38.2% increased approximately 395 basis points over prior year, ahead of expectations
◦
Inventory at year-end was below $1.4 billion, ahead of expectations; for full-year 2023, inventory improved 31% year-over-year, or $612 million; was driven predominantly by the benefits of the Company’s inventory management capabilities, including SKU discipline and lifecycle management, as well as lower input costs
◦
The Company generated $562 million of cash flow from operations, ahead of expectations
◦
With stronger-than-expected operating cash flow, the Company accelerated debt paydown to more than $500 million in 2023, ahead of expectations; year-end leverage ratio was 5.2 times on a net debt-to-adjusted EBITDA basis
◦
The Company ended 2023 with more than $1.3 billion of liquidity
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2024 Proxy Statement
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We gained market share in our U.S. Innerwear business with both men and women in 2023. These gains were driven by key consumer-led innovations, permanent retail space gains, and increased brand marketing investments, as well as improved on-shelf product availability. Revenue from new product innovation was up more than 40% in 2023.
•
However, despite exceeding our goals with regard to our key performance metrics last year, the Company’s 2023 performance did not meet our expectations due to a number of macroeconomic challenges. Total net sales in 2023 were $5.6 billion, compared with $6.2 billion in 2022, representing a 10% decrease. The net sales decline was primarily driven by:
◦
The decline in U.S. Activewear
◦
The continued macro-driven slowdown in consumer spending in our international businesses
◦
The unfavorable impact from foreign currency exchange rates in our International business of approximately $59 million
•
Operating profit was $289 million in 2023 compared with $520 million in 2022, representing a 44% decrease. Adjusted operating profit was $405 million in 2023 compared with $579 million in 2022, representing a 30% decrease. As a percentage of sales, operating profit was 5.1% in 2023 compared to 8.3% in 2022, and adjusted operating profit was 7.2% in 2023 compared to 9.3% in 2022. Operating profit decline was primarily driven by:
◦
Unfavorable sales mix
◦
Commodity and ocean freight cost inflation
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2024 Proxy Statement
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•
We provide annual incentives designed to reward our NEOs for the attainment of short-term goals, and long-term incentives designed to reward increasing stockholder value over the long term.
•
Performance-based and at-risk compensation represents approximately 89% of our Chief Executive Officer’s total target direct compensation, reflecting the position’s highest level of accountability and responsibility for results and approximately 76% of the average total target direct compensation for our other NEOs, as further described in this Compensation Discussion and Analysis.
•
In keeping with our pay-for-performance culture, we expect our NEOs to deliver overall results that exceed performance targets to receive above median market compensation. Below target performance is expected to result in below median market compensation.
•
Our compensation program is designed to reward exceptional and sustained performance. By combining a three-year vesting period for most equity awards with policies prohibiting hedging or pledging of our shares, a substantial portion of the value of our executives’ compensation package is tied to changes in our stock price, and therefore is at-risk, for a significant period of time. In addition, we have implemented a three-year performance period for all performance-based long-term incentive awards. The Talent and Compensation Committee (the “Committee”) believes this design provides an effective way to link executive compensation to long-term stockholder returns.
•
Outstanding equity awards are subject to “double-trigger” accelerated vesting in connection with a change in control, under which the vesting of awards will accelerate only if there is a qualifying termination of employment within two years after the change in control or if the surviving entity does not provide qualifying replacement awards.
•
Our Dodd-Frank Clawback Policy generally provides that we will recover excess incentive-based compensation from covered officers (including the NEOs) in the event we are required to prepare an accounting restatement due to material noncompliance with any financial reporting requirement under the securities laws. Additionally, the terms of both our cash- and equity-based incentive compensation plans permit the recovery of incentive awards if a participant violates our Global Code of Conduct or engages in other activities harmful to the interests of the Company.
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2024 Proxy Statement
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Compensation Element
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Key Features
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Objectives
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Base Salary
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| |
•
Fixed compensation component
•
Reflects the individual responsibilities, performance and experience of each NEO
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| |
•
Provides a foundation of cash compensation for the fulfilment of fundamental job responsibilities
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Annual Incentive
Plan (“AIP”) Awards |
| |
•
Performance-based cash compensation
•
Payout determined based on Company performance against pre-established targets
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| |
•
Motivates performance by linking compensation to the achievement of key annual objectives
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Long-Term Incentive Program (“LTIP”) Awards
|
| |
•
Performance-based and at-risk, time-vested compensation
•
Performance Share Awards (“PSAs”) (50% of LTIP opportunity)
•
Vesting on the third anniversary of the grant date
•
Number of shares received ranges from 0% to 200% of the number of units granted based on fiscal 2023-2025 Company performance against pre-established targets
•
Restricted Stock Unit Awards (“RSUs”) (50% of LTIP opportunity)
•
Ratable vesting over a three-year service period
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| |
•
Encourages behavior that enhances the long-term growth, profitability and financial success of the Company, aligns executives’ interests with our stockholders and supports retention objectives
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•
achieving key annual results and strategic long-term business objectives
•
using an appropriate mix of cash and equity
•
emphasizing a “pay-for-performance” culture
•
effectively managing the cost of pay programs
•
providing a balanced total compensation program to help ensure senior management is not encouraged to take unnecessary and excessive risks that may harm the Company
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2024 Proxy Statement
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2024 Proxy Statement
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What we do:
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| | |
What we don’t do:
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•
Pay-for-performance emphasis with a balance of short- and long-term incentives, using an array of key performance metrics, with a strong emphasis on financial performance
•
Cap AIP and PSA payouts
•
Alignment of executive compensation with stockholder returns through equity ownership requirements and equity-based awards
•
“Double trigger” requirement for severance and accelerated vesting of equity awards pursuant to change-in-control agreements with our NEOs
•
Incorporate ESG goals into our annual cash incentive program
•
Clawback provisions for cash and equity performance-based compensation
•
Independent compensation consultant to the Committee
•
Annual “Say-on-Pay” advisory vote for stockholders
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| | |
•
No repricing or replacing of underwater stock options or stock appreciation rights without stockholder approval
•
No overlapping performance metrics for AIP and PSA awards
•
No employment agreements for our NEOs
•
No tax gross-up payments (other than due on relocation reimbursements as provided under a broad-based program)
•
No hedging or pledging of Hanesbrands stock by NEOs
•
No automatic vesting of equity awards upon a change in control
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Fiscal 2023 Peer Group
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•
American Eagle Outfitters, Inc.
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| |
•
Gildan Activewear, Inc.
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•
Tapestry, Inc.
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•
Bath and Body Works, Inc.
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| |
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Levi Strauss & Co.
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•
The Gap, Inc.
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•
Burlington Stores, Inc.
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•
Lululemon Athletica Inc.
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•
Under Armour, Inc.
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•
Capri Holdings Ltd.
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•
Newell Brands Inc.
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| |
•
V.F. Corporation
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•
Carter’s, Inc.
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| |
•
PVH Corp.
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| |
•
Victoria’s Secret & Co.
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•
Foot Locker, Inc.
|
| |
•
Ralph Lauren Corporation
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2024 Proxy Statement
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•
No increase was made to the total target direct compensation of the Chief Executive Officer for fiscal 2023.
•
As discussed in more detail below, Mr. Lewis’ total target direct compensation increased during fiscal 2023 in connection with his promotion to Chief Financial Officer.
•
Mr. Cavaliere’s 2023 LTIP target was increased by 29% over his 2022 LTIP target, for a 15.6% increase in total target direct compensation over fiscal 2022, to align more closely with the market for equivalent positions while maintaining an appropriate balance of cash and equity-based compensation.
•
Ms. LeFebvre’s target 2023 AIP opportunity was initially established at 75% of base salary, but was increased to 100% of her base salary effective June 1, 2023, to align more closely with the market for equivalent positions.
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NEO
|
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2023 Base Salary
($) |
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2023 AIP Target
($) |
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2023 LTIP Target
($) |
| |
2023 Total
Target Direct Compensation ($) |
| |||||||||
|
Stephen B. Bratspies
|
| | | $ | 1,250,000 | | | |
$2,000,000 (160% of
base salary) |
| | | $ | 7,750,000 | | | | | $ | 11,000,000 | | |
|
M. Scott Lewis(1)
|
| | | | 887,922 | | | |
597,882
(see footnote 1) |
| | | | 1,500,000 | | | | | | 2,985,804 | | |
|
Michael P. Dastugue(2)
|
| | | | 750,000 | | | |
750,000 (100% of
base salary) |
| | | | 0 | | | | | | 1,500,000 | | |
|
Joseph W. Cavaliere
|
| | | | 750,000 | | | |
750,000 (100% of
base salary) |
| | | | 2,200,000 | | | | | | 3,700,000 | | |
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Vanessa LeFebvre
|
| | | | 750,000 | | | |
671,875
(see footnote 3) |
| | | | 1,250,000 | | | | | | 2,671,875 | | |
|
Michael E. Faircloth
|
| | | | 630,000 | | | |
472,500 (75% of
base salary) |
| | | | 1,382,000 | | | | | | 2,484,500 | | |
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•
the AIP
•
the PSA portion of LTIP compensation
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2024 Proxy Statement
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AIP
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PSA Portion of LTIP
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2024 Proxy Statement
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Annual Base Salary
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Name
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Year
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| |
Base Salary
|
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|
Stephen B. Bratspies
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| |
2023
|
| | | $ | 1,250,000 | | |
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2022
|
| | | $ | 1,250,000 | | | |||
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M. Scott Lewis*
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2023
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| | | $ | 887,922 | | |
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2022
|
| | | $ | 386,000 | | | |||
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Michael P. Dastugue
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2023
|
| | | $ | 750,000 | | |
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2022
|
| | | $ | 750,000 | | | |||
|
Joseph W. Cavaliere
|
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2023
|
| | | $ | 750,000 | | |
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2022
|
| | | $ | 750,000 | | | |||
|
Vanessa LeFebvre
|
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2023
|
| | | $ | 750,000 | | |
|
2022
|
| | | $ | 750,000 | | | |||
|
Michael E. Faircloth
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2023
|
| | | $ | 630,000 | | |
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2022
|
| | | $ | 630,000 | | |
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Metric
|
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Weighting
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Threshold
(25% Payout) |
| |
Target
(100% Payout) |
| |
Maximum
(200% Payout) |
| |
FY2023
Results |
| |
Metric
Achievement (% of Target) |
| |
Weighted
Metric Achievement (% of Target) |
| |||||||||||||||||||||
|
Net Organic Sales ($MM)*
|
| | | | 40% | | | | | $ | 5,891 | | | | | $ | 6,201 | | | | | $ | 6,511 | | | | | $ | 5,645 | | | | | | 0% | | | | | | 0% | | |
|
Adjusted Operating Income ($MM)*
|
| | | | 40% | | | | | $ | 495 | | | | | $ | 550 | | | | | $ | 605 | | | | | $ | 405 | | | | | | 0% | | | | | | 0% | | |
|
Net Inventory ($MM)*
|
| | | | 20% | | | | | $ | 1,650 | | | | | $ | 1,500 | | | | | $ | 1,350 | | | | | $ | 1,368 | | | | | | 188% | | | | | | 37.6% | | |
|
Initial Total Weighted Achievement (% of Target)
|
| | | | 37.6% | | |
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Name
|
| |
Threshold
|
| |
Target
|
| |
Maximum
|
| |
Actual
|
| ||||||||||||
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Stephen B. Bratspies
|
| | | $ | 500,000 | | | | | $ | 2,000,000 | | | | | $ | 3,000,000 | | | | | $ | 752,000 | | |
|
M. Scott Lewis(1)
|
| | | $ | 149,470 | | | | | $ | 597,882 | | | | | $ | 896,822 | | | | | $ | 224,803 | | |
|
Michael P. Dastugue(2)
|
| | | $ | 187,500 | | | | | $ | 750,000 | | | | | $ | 1,125,000 | | | | | $ | 0 | | |
|
Joseph W. Cavaliere
|
| | | $ | 187,500 | | | | | $ | 750,000 | | | | | $ | 1,125,000 | | | | | $ | 282,000 | | |
|
Vanessa LeFebvre(3)
|
| | | $ | 167,969 | | | | | $ | 671,875 | | | | | $ | 1,007,813 | | | | | $ | 252,625 | | |
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Michael E. Faircloth
|
| | | $ | 118,125 | | | | | $ | 472,500 | | | | | $ | 708,750 | | | | | $ | 177,660 | | |
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2024 Proxy Statement
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•
Performance Share Awards (PSAs)
•
Time-vested Restricted Stock Unit Awards (RSUs)
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Metric
|
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Weighting
|
| |
Threshold
(25% Payout) |
| |
Target
(100% Payout) |
| |
Maximum
(200% Payout) |
| ||||||||||||
|
Cash Flow from Operations
% Growth over Prior Year |
| | | | 50% | | | | | | 1.0% | | | | | | 10.0% | | | | | | 20.0% | | |
|
Adjusted EPS*
% Growth over Prior Year |
| | | | 50% | | | | | | 0.5% | | | | | | 4.5% | | | | | | 9.0% | | |
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•
The “Defined Contribution Component” of the SERP provides for employer matching and discretionary contributions to U.S.-based employees whose compensation exceeds a threshold set by the Internal Revenue Code. Although, as described above, the 401(k) Plan provides for employer contributions to our NEOs at the same percentage of their eligible compensation as provided for all employees who participate in the 401(k) Plan, compensation and benefit limitations imposed on the 401(k) Plan by the Internal Revenue Code generally prevent us from making the entire amount of the employer matching and discretionary contributions contemplated by the 401(k) Plan with respect to any employee whose compensation exceeds a threshold set by Internal Revenue Code provisions, which was $330,000 for 2023. The SERP provides to those employees whose compensation exceeds this threshold, including our NEOs, benefits that would be earned under the 401(k) Plan but for these limitations. We distribute the accrued vested portion of the Defined Contribution Component of the SERP directly to participants in cash on an annual basis. Any unvested portions of the Defined Contribution Component are credited to the participant’s SERP account and distributed to the participant upon vesting. Each of our NEOs receive benefits under this portion of the SERP.
•
The “Defined Benefit Component” of the SERP provides benefits consisting of those supplemental retirement benefits that had been accrued as of December 31, 2005 under a plan maintained by our former parent company prior to our becoming an independent public company. None of our NEOs has an unpaid benefit under this portion of the SERP.
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Covered Employees: Applies to our current and former “officers” for purposes of Section 16 of the Exchange Act, including all of the NEOs.
•
Recovery Period: Applies to incentive-based compensation for which the relevant performance measure is achieved on or after October 2, 2023, and during the three completed fiscal years prior to the date the restatement is required.
•
Covered Compensation: Covers compensation granted, earned or vested based on a financial reporting measure (including stock price and total shareholder return), and provides for clawback of the amount of such compensation that exceeds what would have been received under the restated results.
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Covered Employees: Applies to all current and former employees who have received cash-based or equity-based incentive compensation under an arrangement maintained by us
•
Recovery Period: Applies to incentive compensation received during the 3-year period preceding the date the restatement is required.
•
Covered Compensation: Covers cash-based and equity-based incentive compensation, and gives discretion to claw back the portion of such compensation that would not have been received under the restated results.
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•
AIP Awards: The participant is required to pay us an amount in cash equal to the amount paid with respect to an AIP award within the 12-month period immediately prior to the conduct.
•
PSAs: The participant forfeits unvested PSAs, and is required to (1) return all shares of stock that the participant has not disposed of that were delivered within one year prior to the date of the commencement of the wrongful conduct (net of certain non-U.S. taxes, if applicable), and (2) pay us cash in amount equal to any financial gain the participant received with respect to shares that were disposed of that were delivered to the participant within one year prior to the commencement of the wrongful conduct (net of certain non-U.S. taxes, if applicable).
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| Name and Principal Position |
| |
Fiscal
Year |
| |
Salary
($)(1) |
| |
Bonus
($) |
| |
Stock
Awards ($)(2) |
| |
Option
Awards ($) |
| |
Non-Equity
Incentive Plan Compensation ($)(1)(3) |
| |
Change in
Pension Value and Nonqualified Deferred Compensation Earnings ($)(4) |
| |
All Other
Compensation ($)(5) |
| |
Total
($) |
| |||||||||||||||||||||||||||
|
Stephen B. Bratspies
Chief Executive Officer |
| | | | 2023 | | | | | $ | 1,250,000 | | | | | $ | — | | | | | $ | 7,749,995 | | | | | $ | — | | | | | $ | 752,000 | | | | | $ | — | | | | | $ | 62,082 | | | | | $ | 9,814,076 | | |
| | | 2022 | | | | | | 1,225,000 | | | | | | — | | | | | | 7,750,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 244,614 | | | | | | 9,219,614 | | | |||
| | | 2021 | | | | | | 1,100,000 | | | | | | — | | | | | | 7,049,994 | | | | | | — | | | | | | 2,691,130 | | | | | | — | | | | | | 190,125 | | | | | | 11,031,249 | | | |||
|
M. Scott Lewis
Chief Financial Officer & Chief Accounting Officer |
| | | | 2023 | | | | | | 887,922 | | | | | | — | | | | | | 1,237,490 | | | | | | — | | | | | | 224,803 | | | | | | — | | | | | | 43,491 | | | | | | 2,393,706 | | |
| | | 2022 | | | | | | 384,167 | | | | | | 650,000 | | | | | | 324,986 | | | | | | — | | | | | | — | | | | | | — | | | | | | 140,359 | | | | | | 1,499,512, | | | |||
| | | 2021 | | | | | | 375,000 | | | | | | 350,000 | | | | | | 225,000 | | | | | | — | | | | | | 532,110 | | | | | | — | | | | | | 90,820 | | | | | | 1,572,930 | | | |||
|
Michael P. Dastugue
Former Chief Financial Officer |
| | | | 2023 | | | | | | 130,769 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 130,769 | | |
| | | 2022 | | | | | | 750,000 | | | | | | — | | | | | | 1,999,988 | | | | | | — | | | | | | — | | | | | | — | | | | | | 95,245 | | | | | | 2,845,233 | | | |||
| | | 2021 | | | | | | 500,000 | | | | | | — | | | | | | 1,013,319 | | | | | | — | | | | | | 815,494 | | | | | | — | | | | | | 70,463 | | | | | | 2,399,276 | | | |||
|
Joseph W. Cavaliere
President Innerwear — Global |
| | | | 2023 | | | | | | 750,000 | | | | | | — | | | | | | 2,200,001 | | | | | | — | | | | | | 282,000 | | | | | | — | | | | | | 81,237 | | | | | | 3,313,238 | | |
| | | 2022 | | | | | | 741,667 | | | | | | — | | | | | | 1,699,992 | | | | | | — | | | | | | — | | | | | | — | | | | | | 266,027 | | | | | | 2,707,686 | | | |||
| | | 2021 | | | | | | 623,719 | | | | | | — | | | | | | 1,519,996 | | | | | | — | | | | | | 1,017,278 | | | | | | — | | | | | | 264,618 | | | | | | 3,425,612 | | | |||
|
Vanessa LeFebvre
President, Activewear — Global |
| | | | 2023 | | | | | | 750,000 | | | | | | — | | | | | | 1,250,002 | | | | | | — | | | | | | 252,625 | | | | | | — | | | | | | 195,443 | | | | | | 2,448,070 | | |
|
Michael E. Faircloth
EVP, Supply Chain — Global |
| | | | 2023 | | | | | | 630,000 | | | | | | — | | | | | | 1,381,997 | | | | | | — | | | | | | 177,660 | | | | | | 10,424 | | | | | | 40,416 | | | | | | 2,240,497 | | |
| | | 2022 | | | | | | 630,000 | | | | | | 500,000 | | | | | | 1,382,011 | | | | | | — | | | | | | — | | | | | | — | | | | | | 122,698 | | | | | | 2,634,709 | | | |||
| | | 2021 | | | | | | 626,667 | | | | | | — | | | | | | 1,282,004 | | | | | | — | | | | | | 766,564 | | | | | | — | | | | | | 75,519 | | | | | | 2,750,754 | | |
|
|
| |
2024 Proxy Statement
|
| |
66
|
|
| | | |
Fiscal
Year |
| |
Grant Date Fair
Value of PSAs ($) |
| |
Grant Date Fair
Value of RSUs ($) |
| |
Total Grant Date
Fair Value of Stock Awards ($) |
| ||||||||||||
|
Stephen B. Bratspies
|
| | | | 2023 | | | | | $ | 3,874,997 | | | | | $ | 3,874,997 | | | | | $ | 7,749,995 | | |
|
M. Scott Lewis
|
| | | | 2023 | | | | | | 456,247 | | | | | | 781,243 | | | | | | 1,237,490 | | |
|
Michael P. Dastugue
|
| | | | 2023 | | | | | | — | | | | | | — | | | | | | — | | |
|
Joseph W. Cavaliere
|
| | | | 2023 | | | | | | 1,100,001 | | | | | | 1,100,001 | | | | | | 2,200,001 | | |
|
Vanessa LeFebvre
|
| | | | 2023 | | | | | | 625,001 | | | | | | 625,001 | | | | | | 1,250,002 | | |
|
Michael E. Faircloth
|
| | | | 2023 | | | | | | 690,999 | | | | | | 690,999 | | | | | | 1,381,997 | | |
|
|
| |
2024 Proxy Statement
|
| |
67
|
|
|
Name
|
| |
Grant
Date |
| |
Estimated Possible Payouts Under
Non-Equity Incentive Plan Awards |
| |
Estimated Future Payouts Under
Equity Incentive Plan Awards |
| |
All Other
Stock Awards: Number of Shares of Stock or Units (#) |
| |
Grant Date Fair
Value of Stock and Option Awards ($)(1) |
| |||||||||||||||||||||||||||||||||||||||
|
Threshold
($) |
| |
Target
($) |
| |
Maximum
($) |
| |
Threshold
(#) |
| |
Target
(#) |
| |
Maximum
(#) |
| |||||||||||||||||||||||||||||||||||||||
|
Stephen B. Bratspies
|
| | | | 1/23/2023(2) | | | | | $ | 500,000 | | | | | $ | 2,000,000 | | | | | $ | 3,000,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | — | | |
| | | 1/23/2023(3) | | | | | | — | | | | | | — | | | | | | — | | | | | | 117,282 | | | | | | 469,128 | | | | | | 938,256 | | | | | | — | | | | | | 3,874,997(4) | | | |||
| | | 1/23/2023(5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 469,128 | | | | | | 3,874,997 | | | |||
|
M. Scott Lewis
|
| | | | 1/23/2023(2) | | | | | | 149,470 | | | | | | 597,882 | | | | | | 896,822 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | 1/23/2023(3) | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,918 | | | | | | 19,673 | | | | | | 39,346 | | | | | | — | | | | | | 162,499(4) | | | |||
| | | 1/23/2023(5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 19,673 | | | | | | 162,499 | | | |||
| | | 2/1/2023(6) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 37,313 | | | | | | 324,996 | | | |||
| | | 7/10/2023(7) | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,211 | | | | | | 64,845 | | | | | | 129,690 | | | | | | — | | | | | | 293,748(4) | | | |||
| | | 7/10/2023(8) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 64,845 | | | | | | 293,748 | | | |||
|
Michael P. Dastugue
|
| | | | 1/23/2023(2) | | | | | | 187,500 | | | | | | 750,000 | | | | | | 1,125,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Joseph W. Cavaliere
|
| | | | 1/23/2023(2) | | | | | | 187,500 | | | | | | 750,000 | | | | | | 1,125,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | 1/23/2023(3) | | | | | | — | | | | | | — | | | | | | — | | | | | | 33,293 | | | | | | 133,172 | | | | | | 266,344 | | | | | | — | | | | | | 1,001,001(4) | | | |||
| | | 1/23/2023(5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 133,172 | | | | | | 1,001,001 | | | |||
|
Vanessa LeFebvre
|
| | | | 1/23/2023(2) | | | | | | 167,969 | | | | | | 671,875 | | | | | | 1,007,813 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | 1/23/2023(3) | | | | | | — | | | | | | — | | | | | | — | | | | | | 18,917 | | | | | | 75,666 | | | | | | 151,332 | | | | | | — | | | | | | 625,001(4) | | | |||
| | | 1/23/2023(5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 75,666 | | | | | | 625,001 | | | |||
|
Michael E. Faircloth
|
| | | | 1/23/2023(2) | | | | | | 118,125 | | | | | | 472,500 | | | | | | 708,750 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | 1/23/2023(3) | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,914 | | | | | | 83,656 | | | | | | 167,312 | | | | | | — | | | | | | 690,999(4) | | | |||
| | | 1/23/2023(5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 83,656 | | | | | | 690,999 | | |
|
|
| |
2024 Proxy Statement
|
| |
68
|
|
| | | | | | | | | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||||||||||||||||||||||||||
|
Name
|
| | | | | | | |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |
Number of
Shares or Units of Stock That Have Not Vested (#) |
| |
Market Value of
Shares or Units of Stock That Have Not Vested ($)(1) |
| |
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
| |
Equity
Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(1) |
| ||||||||||||||||||||||||
|
Stephen B. Bratspies
|
| | |
|
(2)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 469,128 | | | | | | 2,092,311 | | |
| |
|
(3)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 469,128 | | | | | | 2,092,311 | | | | | | — | | | | | | — | | | |||
| |
|
(4)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 237,876 | | | | | | 1,060,927 | | | |||
| |
|
(5)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 159,377 | | | | | | 710,821 | | | | | | — | | | | | | — | | | |||
| |
|
(6)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 381,700 | | | | | | 1,702,382 | | | | | | — | | | | | | — | | | |||
| |
|
(7)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 77,323 | | | | | | 344,861 | | | | | | — | | | | | | — | | | |||
| |
|
(8)
|
| | | | | 83,333 | | | | | | — | | | | | | 14.32 | | | | | | 8/3/2030 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |||
| |
|
(9)
|
| | | | | 83,333 | | | | | | — | | | | | | 17.18 | | | | | | 8/3/2030 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |||
| |
|
(10)
|
| | | | | 83,334 | | | | | | — | | | | | | 20.05 | | | | | | 8/3/2030 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |||
|
M. Scott Lewis
|
| | |
|
(2)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 19,673 | | | | | | 87,742 | | |
| |
|
(3)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 19,673 | | | | | | 87,742 | | | | | | — | | | | | | — | | | |||
| |
|
(4)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,975 | | | | | | 44,489 | | | |||
| |
|
(5)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,684 | | | | | | 29,811 | | | | | | — | | | | | | — | | | |||
| |
|
(6)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,182 | | | | | | 54,332 | | | | | | — | | | | | | — | | | |||
| |
|
(7)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,468 | | | | | | 11,007 | | | | | | — | | | | | | — | | | |||
| |
|
(11)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 37,313 | | | | | | 166,416 | | | | | | — | | | | | | — | | | |||
| |
|
(12)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 64,845 | | | | | | 289,209 | | | | | | — | | | | | | — | | | |||
| |
|
(13)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 64,845 | | | | | | 289,209 | | | |||
|
Michael P. Dastugue
|
| | |
|
(17)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
Joseph W. Cavaliere
|
| | |
|
(2)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 133,172 | | | | | | 593,947 | | |
| |
|
(3)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 133,172 | | | | | | 593,947 | | | | | | — | | | | | | — | | | |||
| |
|
(4)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 52,179 | | | | | | 232,718 | | | |||
| |
|
(5)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 34,960 | | | | | | 155,922 | | | | | | — | | | | | | — | | | |||
| |
|
(6)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 82,296 | | | | | | 367,040 | | | | | | — | | | | | | — | | | |||
| |
|
(14)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,171 | | | | | | 72,123 | | | | | | — | | | | | | — | | |
|
|
| |
2024 Proxy Statement
|
| |
69
|
|
| | | | | | | | | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||||||||||||||||||||||||||
|
Name
|
| | | | | | | |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |
Number of
Shares or Units of Stock That Have Not Vested (#) |
| |
Market Value of
Shares or Units of Stock That Have Not Vested ($)(1) |
| |
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
| |
Equity
Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(1) |
| ||||||||||||||||||||||||
|
Vanessa LeFebvre
|
| | |
|
(2)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 75,666 | | | | | | 337,470 | | |
| |
|
(3)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 75,666 | | | | | | 337,470 | | | | | | — | | | | | | — | | | |||
| |
|
(15)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,704 | | | | | | 101,260 | | | |||
| |
|
(16)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,212 | | | | | | 67,846 | | | | | | — | | | | | | — | | | |||
|
Michael E. Faircloth
|
| | |
|
(2)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 83,656 | | | | | | 373,106 | | |
| |
|
(3)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 83,656 | | | | | | 373,106 | | | | | | — | | | | | | — | | | |||
| |
|
(4)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 42,419 | | | | | | 189,189 | | | |||
| |
|
(5)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,421 | | | | | | 126,758 | | | | | | — | | | | | | — | | | |||
| |
|
(6)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 69,410 | | | | | | 309,569 | | | | | | — | | | | | | — | | | |||
| |
|
(7)
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14,061 | | | | | | 62,712 | | | | | | — | | | | | | — | | |
|
|
| |
2024 Proxy Statement
|
| |
70
|
|
| | | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||
|
Name
|
| |
Number of Shares
Acquired on Exercise (#) |
| |
Value Realized
on Exercise ($) |
| |
Number of Shares
Acquired on Vesting (#) |
| |
Value Realized
on Vesting ($) |
| ||||||||||||
|
Stephen B. Bratspies
|
| | | | — | | | | | | — | | | | | | 186,936 | | | | | $ | 1,389,644 | | |
|
M. Scott Lewis
|
| | | | — | | | | | | — | | | | | | 7,777 | | | | | | 62,078 | | |
|
Michael P. Dastugue
|
| | | | — | | | | | | — | | | | | | 20,257 | | | | | | 162,461 | | |
|
Joseph W. Cavaliere
|
| | | | — | | | | | | — | | | | | | 32,913 | | | | | | 230,534 | | |
|
Vanessa LeFebvre
|
| | | | — | | | | | | — | | | | | | 40,186 | | | | | | 220,621 | | |
|
Michael E. Faircloth
|
| | | | — | | | | | | — | | | | | | 42,961 | | | | | | 343,213 | | |
|
Name
|
| |
Plan Name
|
| |
Number of Years
Credited Service (#)(1) |
| |
Present Value of
Accumulated Benefit ($)(2) |
| |
Payments
During Last Fiscal Year ($) |
| |||||||||
|
Stephen B. Bratspies
|
| |
—
|
| | | | — | | | | | $ | — | | | | | $ | — | | |
|
M. Scott Lewis
|
| |
—
|
| | | | — | | | | | | — | | | | | | — | | |
|
Michael P. Dastugue
|
| |
—
|
| | | | — | | | | | | — | | | | | | — | | |
|
Joseph W. Cavaliere
|
| |
—
|
| | | | — | | | | | | — | | | | | | — | | |
|
Vanessa LeFebvre
|
| |
—
|
| | | | — | | | | | | — | | | | | | — | | |
|
Michael E. Faircloth
|
| |
Pension Plan
|
| | | | 8.5833 | | | | | | 159,765 | | | | | | — | | |
|
|
| |
2024 Proxy Statement
|
| |
71
|
|
|
Name
|
| |
Plan
|
| |
Executive
Contributions in Last FY ($) |
| |
Registrant
Contributions in Last FY ($) |
| |
Aggregate
Earnings in Last FY ($)(1) |
| |
Aggregate
Withdrawals/ Distributions ($) |
| |
Aggregate
Balance at Last FYE ($) |
| |||||||||||||||
|
Stephen B. Bratspies
|
| |
Executive Deferred Compensation Plan
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
|
SERP (Defined Contribution Component)
|
| | | | — | | | | | | 36,800(2) | | | | | | (5,841) | | | | | | 146,955 | | | | | | 48,969(3) | | | |||
|
M. Scott Lewis
|
| |
Executive Deferred Compensation Plan
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
SERP (Defined Contribution Component)
|
| | | | — | | | | | | 22,317(2) | | | | | | — | | | | | | 50,451 | | | | | | 22,317(3) | | | |||
|
Michael P. Dastugue
|
| |
Executive Deferred Compensation Plan
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
SERP (Defined Contribution Component)
|
| | | | — | | | | | | — | | | | | | (58,131) | | | | | | — | | | | | | — | | | |||
|
Joseph W. Cavaliere
|
| |
Executive Deferred Compensation Plan
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
SERP (Defined Contribution Component)
|
| | | | — | | | | | | 16,800(2) | | | | | | (1,828) | | | | | | 65,734 | | | | | | 19,651(3) | | | |||
|
Vanessa LeFebvre
|
| |
Executive Deferred Compensation Plan
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
SERP (Defined Contribution Component)
|
| | | | — | | | | | | 16,800(2) | | | | | | (1,856) | | | | | | — | | | | | | 26,821(3) | | | |||
|
Michael E. Faircloth
|
| |
Executive Deferred Compensation Plan
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
|
SERP (Defined Contribution Component)
|
| | | | — | | | | | | 12,000(2) | | | | | | — | | | | | | 63,663 | | | | | | 12,000(3) | | |
|
|
| |
2024 Proxy Statement
|
| |
72
|
|
| | | | | | |
Voluntary Termination(1)
|
| |
Involuntary Termination(1)
|
| ||||||||||||||||||
| | | | | | |
Retirement(2)
|
| |
Death/Disability
|
| |
Not For Cause
|
| |
Change in Control
|
| ||||||||||||
|
Stephen B. Bratspies
|
| |
Severance
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,250,000(3) | | | | | $ | 9,750,000(4) | | |
|
LTIP(5)
|
| | | | — | | | | | | 8,003,613 | | | | | | — | | | | | | 8,003,613 | | | |||
|
Benefits and perquisites
|
| | | | — | | | | | | — | | | | | | 6,500(6) | | | | | | 257,498(7) | | | |||
|
Total
|
| | | | — | | | | | | 8,003,613 | | | | | | 1,256,500 | | | | | | 18,011,111 | | | |||
|
M. Scott Lewis
|
| |
Severance
|
| | | | — | | | | | | — | | | | | | 1,500,000(3) | | | | | | 3,000,000 | | |
|
LTIP(5)
|
| | | | 65,339 | | | | | | 1,059,955 | | | | | | — | | | | | | 1,059,955 | | | |||
|
Benefits and perquisites
|
| | | | — | | | | | | — | | | | | | 23,166(6) | | | | | | 132,688 | | | |||
|
Total
|
| | | | 65,339 | | | | | | 1,059,955 | | | | | | 1,523,166 | | | | | | 4,192,643 | | | |||
|
Joseph W. Cavaliere
|
| |
Severance
|
| | | | — | | | | | | — | | | | | | 750,000(3) | | | | | | 3,000,000(4) | | |
|
LTIP(5)
|
| | | | — | | | | | | 2,015,697 | | | | | | — | | | | | | 2,015,697 | | | |||
|
Benefits and perquisites
|
| | | | — | | | | | | — | | | | | | 57,737(6) | | | | | | 222,846(7) | | | |||
|
Total
|
| | | | — | | | | | | 2,015,697 | | | | | | 807,737 | | | | | | 5,238,543 | | |
|
|
| |
2024 Proxy Statement
|
| |
73
|
|
| | | | | | |
Voluntary Termination(1)
|
| |
Involuntary Termination(1)
|
| ||||||||||||||||||
| | | | | | |
Retirement(2)
|
| |
Death/Disability
|
| |
Not For Cause
|
| |
Change in Control
|
| ||||||||||||
|
Vanessa LeFebvre
|
| |
Severance
|
| | | | — | | | | | | — | | | | | | 750,000(3) | | | | | | 3,000,000(4) | | |
|
LTIP(5)
|
| | | | — | | | | | | 844,046 | | | | | | — | | | | | | 844,046 | | | |||
|
Benefits and perquisites
|
| | | | — | | | | | | — | | | | | | 21,928(6) | | | | | | 193,675(7) | | | |||
|
Total
|
| | | | — | | | | | | 844,046 | | | | | | 771,928 | | | | | | 4,037,721 | | | |||
|
Michael E. Faircloth
|
| |
Severance
|
| | | | — | | | | | | — | | | | | | 1,260,000(3) | | | | | | 2,205,000 | | |
|
LTIP(5)
|
| | | | 1,339,844 | | | | | | 1,434,439 | | | | | | — | | | | | | 1,434,439 | | | |||
|
Benefits and perquisites
|
| | | | — | | | | | | — | | | | | | 38,301(6) | | | | | | 132,608(7) | | | |||
|
Total
|
| | | | 1,339,844 | | | | | | 1,434,439 | | | | | | 1,298,301 | | | | | | 3,772,047 | | |
|
|
| |
2024 Proxy Statement
|
| |
74
|
|
| |
•
We determined that, as of October 31, 2023 (the “Determination Date”), our employee population then consisted of approximately 49,000 individuals (excluding Stephen B. Bratspies, our CEO, but including full-time, part-time, seasonal and temporary employees) working at Hanesbrands and its consolidated subsidiaries. We reviewed and analyzed payroll data for our entire employee population as of the Determination Date in order to identify the global median employee.
•
In order to consistently measure the compensation of our employees other than our CEO, we utilized total cash compensation (including regular pay, overtime, bonuses, incentives, allowances and paid time off, but excluding amounts set aside on behalf of the employee, such as retirement contributions, pension, provident fund or superannuation) for the 10-month period ending October 31, 2023 Pay was annualized on a 10-month basis for permanent employees included in the sample who were hired in 2023 but did not work for us or our consolidated subsidiaries for the entire 10-month period.
•
For purposes of this analysis, we converted all cash compensation paid in foreign currency to U.S. dollars using the applicable exchange rate on December 29, 2023. We did not make any cost-of-living adjustments in identifying the global median employee.
|
|
|
|
| |
2024 Proxy Statement
|
| |
75
|
|
| Year (a) | | | Summary Compensation Table (“SCT”) Total for Stephen Bratspies(1) ($) (b) | | | Compensation Actually Paid to Stephen Bratspies(1)(2)(3) ($) (c) | | | SCT Total for Gerald W. Evans, Jr.(1) ($) (b) | | | Compensation Actually Paid to Gerald W. Evans, Jr.(1)(2)(3) ($) (c) | | | Average SCT Total for Non-PEO NEOs(1) ($) (d) | | | Average Compensation Actually Paid to Non-PEO NEOs(1)(2)(3) ($) (e) | | | Value of Initial Fixed $100 Investment based on:(4) | | | Net Income ($ Millions) (h) | | | Organic Sales ($ Millions) (i) | | |||||||||||||||||||||||||||||||||
| TSR ($) (f) | | | Peer Group TSR ($) (g) | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ( | | | | | | | | |||||||||
| 2022 | | | | | | | | | | ( | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ( | | | | | | | | ||||||||
| 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
| 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ( | | | | | | | |
|
2020
|
| |
2021
|
| |
2022
|
| |
2023
|
|
|
M. Scott Lewis
|
| |
M. Scott Lewis
|
| |
Michael E. Faircloth
|
| |
M. Scott Lewis
|
|
|
W. Howard Upchurch
|
| |
Michael E. Faircloth
|
| |
Michael P. Dastugue
|
| |
Michael P. Dastugue
|
|
|
Joia M. Johnson
|
| |
Michael P. Dastugue
|
| |
Joseph W. Cavaliere
|
| |
Joseph W. Cavaliere
|
|
|
Michael E. Faircloth
|
| |
Joseph W. Cavaliere
|
| |
Kristin L. Oliver
|
| |
Vanessa LeFebvre
|
|
| | | |
Jonathan Ram
|
| | | | |
Michael E. Faircloth
|
|
|
|
| |
2024 Proxy Statement
|
| |
76
|
|
| Year | | | Summary Compensation Table Total ($) | | | Exclusion of Change in Pension Value ($) | | | Exclusion of Stock Awards and Option Awards ($) | | | Inclusion of Pension Service Cost ($) | | | Inclusion of Equity Values ($) | | | Compensation Actually Paid ($) | | ||||||||||||||||||
| 2023 | | | | | | | | | | | | | | | ( | | | | | | | | | | | | | | | | | |
| Year | | | Average Summary Compensation Table Total ($) | | | Average Exclusion of Change in Pension Value ($) | | | Average Exclusion of Stock Awards and Option Awards ($) | | | Average Inclusion of Pension Service Cost ($) | | | Average Inclusion of Equity Values ($) | | | Average Compensation Actually Paid ($) | | ||||||||||||||||||
| 2023 | | | | | | | | | | ( | | | | | | ( | | | | | | | | | | | | | | | | | |
| Year | | | Year-End Fair Value of Equity Awards Granted During Year That Remained Unvested as of Last Day of Year ($) | | | Change in Fair Value from Last Day of Prior Year to Last Day of Year of Unvested Equity Awards ($) | | | Vesting-Date Fair Value of Equity Awards Granted During Year that Vested During Year ($) | | | Change in Fair Value from Last Day of Prior Year to Vesting Date of Unvested Equity Awards that Vested During Year ($) | | | Fair Value at Last Day of Prior Year of Equity Awards Forfeited During Year ($) | | | Value of Dividends or Other Earnings Paid on Equity Awards Not Otherwise Included ($) | | | Total — Inclusion of Equity Values ($) | | |||||||||||||||||||||
| 2023 | | | | | | | | | | ( | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Year | | | Average Year-End Fair Value of Equity Awards Granted During Year That Remained Unvested as of Last Day of Year ($) | | | Average Change in Fair Value from Last Day of Prior Year to Last Day of Year of Unvested Equity Awards ($) | | | Average Vesting-Date Fair Value of Equity Awards Granted During Year that Vested During Year ($) | | | Average Change in Fair Value from Last Day of Prior Year to Vesting Date of Unvested Equity Awards that Vested During Year ($) | | | Average Fair Value at Last Day of Prior Year of Equity Awards Forfeited During Year ($) | | | Average Value of Dividends or Other Earnings Paid on Equity Awards Not Otherwise Included ($) | | | Total — Average Inclusion of Equity Values ($) | | |||||||||||||||||||||
| 2023 | | | | | | | | | | ( | | | | | | | | | | | | | | | | ( | | | | | | | | | | | | |
|
|
| |
2024 Proxy Statement
|
| |
77
|
|
|
|
| |
2024 Proxy Statement
|
| |
78
|
|
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
|
|
| |
2024 Proxy Statement
|
| |
79
|
|
| | | |
Amount and Nature of
Beneficial Ownership |
| |
Other(1)
|
| ||||||||||||||||||||||||
|
Name and Address of Beneficial Owner
|
| |
Beneficial
Ownership of Our Common Stock |
| |
Percentage
of Class |
| |
Restricted
Stock Units |
| |
Stock Equivalent
Units in SERP and Deferred Compensation Plans |
| |
Total
|
| |||||||||||||||
|
BlackRock, Inc.(2)
|
| | | | 56,687,778 | | | | | | 16.12% | | | | | | — | | | | | | — | | | | | | | | |
|
Vanguard Group, Inc.(3)
|
| | | | 38,903,759 | | | | | | 11.07% | | | | | | — | | | | | | — | | | | | | | | |
|
Stephen B. Bratspies
|
| | | | 633,054 | | | | | | * | | | | | | 395,194 | | | | | | 2,731 | | | | | | 1,030,979 | | |
|
Michael E. Faircloth
|
| | | | 375,872 | | | | | | * | | | | | | 70,473 | | | | | | — | | | | | | 446,345 | | |
|
Joseph W. Cavaliere
|
| | | | 176,789 | | | | | | * | | | | | | 106,967 | | | | | | 639 | | | | | | 284,395 | | |
|
Robert F. Moran
|
| | | | 79,896 | | | | | | * | | | | | | 33,477 | | | | | | 9,520 | | | | | | 122,893 | | |
|
Franck J. Moison
|
| | | | 67,952 | | | | | | * | | | | | | 33,477 | | | | | | — | | | | | | 101,429 | | |
|
M. Scott Lewis
|
| | | | 63,261 | | | | | | * | | | | | | 106,418 | | | | | | — | | | | | | 169,679 | | |
|
James C. Johnson
|
| | | | 54,048 | | | | | | * | | | | | | 33,477 | | | | | | 167,608 | | | | | | 255,133 | | |
|
Vanessa LeFebvre
|
| | | | 41,125 | | | | | | * | | | | | | 65,909 | | | | | | 2,248 | | | | | | 109,282 | | |
|
William S. Simon
|
| | | | 26,296 | | | | | | * | | | | | | 33,477 | | | | | | — | | | | | | 59,773 | | |
|
Geralyn R. Breig
|
| | | | — | | | | | | * | | | | | | 33,477 | | | | | | 64,698 | | | | | | 98,175 | | |
|
Mark A. Irvin
|
| | | | — | | | | | | * | | | | | | 58,492 | | | | | | — | | | | | | 58,492 | | |
|
Colin Browne
|
| | | | — | | | | | | * | | | | | | 33,477 | | | | | | — | | | | | | 33,477 | | |
|
Natasha C. Chand
|
| | | | — | | | | | | * | | | | | | 33,477 | | | | | | — | | | | | | 33,477 | | |
|
John G. Mehas
|
| | | | — | | | | | | * | | | | | | 33,477 | | | | | | — | | | | | | 33,477 | | |
|
All directors and executive officers as a group (16 persons)(4)
|
| | |
|
1,605,827
|
| | | |
|
*
|
| | | | | | | | | | | | | | | | | | | |
|
|
| |
2024 Proxy Statement
|
| |
80
|
|
| |
•
held directly in your name as the stockholder of record
•
held for you in an account with a broker, bank or other nominee
|
|
| |
•
represented by your interest in the HBI Stock Fund in the 401(k) Plan
•
credited to your account in the Hanesbrands Inc. Employee Stock Purchase Plan of 2006
|
|
|
|
| |
2024 Proxy Statement
|
| |
82
|
|
| |
•
you are present in person at the Annual Meeting and your shares are registered in your name or you have a proxy from your bank, broker or other nominee to vote your shares
•
you have properly executed and submitted a proxy card or authorized a proxy over the telephone or the Internet, prior to the Annual Meeting
|
|
| |
•
The election of directors will be determined by a majority of the votes cast at the Annual Meeting. Accordingly, each of the ten nominees for director will be elected if he or she receives a majority of the votes cast in person or represented by proxy, with respect to that director. A majority of the votes cast means that the number of shares voted FOR a director must exceed the number of shares voted AGAINST that director. Abstentions and broker non-votes, if any, are not treated as votes cast, and therefore will have no effect on the proposal to elect directors. Additionally, pursuant to our Corporate Governance Guidelines, if in an uncontested election for director, a nominee for director does not receive the affirmative vote of a majority of the total votes cast for and against such nominee, the nominee will offer, following certification of the election results, to submit his or her resignation to the Board for consideration. Stockholders cannot cumulate votes in the election of directors.
|
|
| |
•
The ratification of the appointment of PricewaterhouseCoopers as Hanesbrands’ independent registered public accounting firm for our 2024 fiscal year requires approval by a majority of the votes cast at the Annual Meeting. Accordingly, the number of shares voted FOR the proposal must exceed the number of shares voted AGAINST the proposal. Abstentions are not treated as votes cast, and therefore will have no effect on the proposal.
|
|
| |
•
The approval, on an advisory basis, of the compensation of our named executive officers as disclosed in this Proxy Statement requires approval by a majority of the votes cast at the Annual Meeting. Accordingly, the number of shares voted FOR the proposal must exceed the number of shares voted AGAINST the proposal. Abstentions and broker non-votes are not treated as votes cast, and therefore will have no effect on the proposal.
|
|
|
|
| |
2024 Proxy Statement
|
| |
83
|
|
|
|
| |
2024 Proxy Statement
|
| |
84
|
|
|
|
| |
2024 Proxy Statement
|
| |
85
|
|
|
|
| |
2024 Proxy Statement
|
| |
86
|
|
|
AIP
|
| |
Annual Incentive Plan
|
|
|
Committee (or Talent and Compensation Committee)
|
| |
Talent and Compensation Committee of the Board of Directors
|
|
|
Adjusted EPS
|
| |
Diluted earnings per share from continuing operations, excluding actions and the tax effect on actions and excluding certain unusual or nonrecurring items and as adjusted to exclude the impact of businesses held for sale
|
|
|
LTIP
|
| |
Long-Term Incentive Program
|
|
|
Net organic sales
|
| |
Net sales excluding those derived from businesses acquired within the previous 12 months of a reporting date and as adjusted for businesses held for sale
|
|
|
Adjusted operating income
|
| |
Operating income, excluding certain unusual or nonrecurring items and as adjusted to exclude the impact of businesses held for sale
|
|
|
PSA
|
| |
Performance Share Award
|
|
|
RSU
|
| |
Restricted Stock Unit
|
|
|
SERP
|
| |
Supplemental Employee Retirement Plan
|
|
|
|
| |
2024 Proxy Statement
|
| |
87
|
|
|
|
| |
2024 Proxy Statement
|
| |
88
|
|
|
|
| |
2024 Proxy Statement
|
| |
89
|
|
|
Global Champion performance plan
|
| |
The global Champion performance plan includes actions and related charges regarding the Company’s accelerated and enhanced strategic initiatives to further streamline the operations and position the brand for long term profitable growth and the evaluation of strategic alternatives for the global Champion business, which includes over $59 million of inventory write-downs related to the execution of its channel, mix and product segmentation strategy including the exit of discontinued programs, which are reflected in gross profit, and approximately $29 million of charges related to professional fees, supply chain segmentation, store closures, severance and other costs of which approximately $8 million are reflected in gross profit and approximately $21 million are reflected in selling, general and administrative expenses.
|
|
|
Supply chain segmentation
|
| |
Represents charges related to the supply chain segmentation to restructure and position the Company’s manufacturing network to align with its Full Potential transformation plan demand trends.
|
|
|
Headcount actions and related severance
|
| |
Represents charges related to operating model initiatives primarily headcount actions and related severance charges and adjustments as a result of the implementation of the Company’s Full Potential transformation plan.
|
|
|
Technology
|
| |
Represents technology charges related to the implementation of the Company’s technology modernization initiative which includes a global enterprise resource planning platform under its Full Potential transformation plan.
|
|
|
Professional services
|
| |
Represents professional fees, primarily including consulting and advisory services, related to the implementation of the Company’s Full Potential transformation plan.
|
|
|
Gain/loss on sale of business and classification of assets held for sale
|
| |
Represents the gain/loss associated with the sale of the Company’s U.S. Sheer Hosiery business and adjustments to the related valuation allowance prior to the sale, primarily from the changes in carrying value due to changes in working capital.
|
|
|
Loss on extinguishment of debt
|
| |
Represents charges related to the redemption of the Company’s 4.625% Senior Notes and 3.5% Senior Notes in the first quarter of 2023.
|
|
|
Gain on final settlement of cross currency swap contracts
|
| |
Primarily represents the remaining gain related to cross-currency swap contracts previously designated as cash flow hedges in AOCI which was released into earnings as the Company unwound the cross-currency swap contracts in connection with the redemption of the 3.5% Senior Notes at the time of settlement in the first quarter of 2023.
|
|
|
Discrete tax benefits
|
| |
Represents an adjustment to non-cash reserves established at December 31, 2022 related to deferred taxes established for Swiss statutory impairments, which are not indicative of the Company’s core business operations.
|
|
|
Tax effect on actions
|
| |
Represents the applicable effective tax rate on the restructuring and other action-related charges based on the jurisdiction of where the charges were incurred.
|
|
| | | |
Quarters Ended
|
| |
Years Ended
|
| ||||||||||||||||||
| | | |
December 30,
2023 |
| |
December 31,
2022 |
| |
December 30,
2023 |
| |
December 31,
2022 |
| ||||||||||||
|
Gross profit, as reported under GAAP
|
| | | $ | 493,669 | | | | | $ | 501,977 | | | | | $ | 1,896,410 | | | | | $ | 2,221,108 | | |
|
As a % of net sales
|
| | |
|
38.1%
|
| | | |
|
34.1%
|
| | | |
|
33.6%
|
| | | |
|
35.6%
|
| |
|
Restructuring and other action-related charges:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Global Champion performance plan
|
| | | | 2,859 | | | | | | — | | | | | | 66,964 | | | | | | — | | |
|
Full Potential transformation plan:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Supply chain segmentation
|
| | | | (1,284) | | | | | | 3,395 | | | | | | 4,151 | | | | | | 17,982 | | |
|
Headcount actions and related severance
|
| | | | 156 | | | | | | (516) | | | | | | 1,025 | | | | | | (712) | | |
|
Other
|
| | | | — | | | | | | 13 | | | | | | — | | | | | | (245) | | |
|
Gross profit, as adjusted
|
| | | $ | 495,400 | | | | | $ | 504,869 | | | | | $ | 1,968,550 | | | | | $ | 2,238,133 | | |
|
As a % of net sales
|
| | |
|
38.2%
|
| | | |
|
34.3%
|
| | | |
|
34.9%
|
| | | |
|
35.9%
|
| |
|
|
| |
2024 Proxy Statement
|
| |
90
|
|
| | | |
Quarters Ended
|
| |
Years Ended
|
| ||||||||||||||||||
| | | |
December 30,
2023 |
| |
December 31,
2022 |
| |
December 30,
2023 |
| |
December 31,
2022 |
| ||||||||||||
|
Operating profit, as reported under GAAP
|
| | | $ | 96,097 | | | | | $ | 60,335 | | | | | $ | 288,782 | | | | | $ | 519,545 | | |
|
As a % of net sales
|
| | |
|
7.4%
|
| | | |
|
4.1%
|
| | | |
|
5.1%
|
| | | |
|
8.3%
|
| |
|
Restructuring and other action-related charges:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Global Champion performance plan
|
| | | | 14,310 | | | | | | — | | | | | | 88,045 | | | | | | — | | |
|
Full Potential transformation plan:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Technology
|
| | | | 657 | | | | | | 2,870 | | | | | | 8,953 | | | | | | 11,922 | | |
|
Headcount actions and related severance
|
| | | | 729 | | | | | | 9,333 | | | | | | 6,105 | | | | | | 8,221 | | |
|
Supply chain segmentation
|
| | | | (1,284) | | | | | | 3,395 | | | | | | 4,151 | | | | | | 17,982 | | |
|
Professional services
|
| | | | 6 | | | | | | 2,980 | | | | | | 3,819 | | | | | | 23,994 | | |
|
(Gain) loss on sale of business and classification of assets held for sale
|
| | | | — | | | | | | 3,023 | | | | | | 3,641 | | | | | | (3,535) | | |
|
Other
|
| | | | 233 | | | | | | 624 | | | | | | 1,190 | | | | | | 1,274 | | |
|
Operating profit, as adjusted
|
| | | $ | 110,748 | | | | | $ | 82,560 | | | | | $ | 404,686 | | | | | $ | 579,403 | | |
|
As a % of net sales
|
| | |
|
8.5%
|
| | | |
|
5.6%
|
| | | |
|
7.2%
|
| | | |
|
9.3%
|
| |
| | | |
Last Twelve Months
|
| |||||||||
| | | |
December 30,
2023 |
| |
December 31,
2022 |
| ||||||
|
Leverage Ratio:
|
| | | | | | | | | | | | |
|
EBITDA(1):
|
| | | | | | | | | | | | |
|
Loss from continuing operations
|
| | | $ | (17,726) | | | | | $ | (131,169) | | |
|
Interest expense, net
|
| | | | 275,354 | | | | | | 157,073 | | |
|
Income tax expense (benefit)
|
| | | | (7,366) | | | | | | 483,907 | | |
|
Depreciation and amortization
|
| | | | 105,037 | | | | | | 106,267 | | |
|
Total EBITDA
|
| | | | 355,299 | | | | | | 616,078 | | |
|
Total restructuring and other action-related charges (excluding tax effect on actions)(2)
|
| | | | 123,000 | | | | | | 59,858 | | |
|
Other net losses, charges and expenses(3)
|
| | | | 123,856 | | | | | | 118,240 | | |
|
Total EBITDA, as adjusted
|
| | | $ | 602,155 | | | | | $ | 794,176 | | |
|
Net debt:
|
| | | | | | | | | | | | |
|
Debt (current and long-term debt and Accounts Receivable Securitization Facility excluding long term debt issuance costs and debt discount of $36,110 and $13,198, respectively)
|
| | | $ | 3,336,750 | | | | | $ | 3,872,275 | | |
|
(Less) debt related to an unrestricted subsidiary(4)
|
| | | | (6,000) | | | | | | — | | |
|
Other debt and cash adjustments(5)
|
| | | | 4,185 | | | | | | 4,955 | | |
|
(Less) Cash and cash equivalents
|
| | | | (205,501) | | | | | | (238,413) | | |
|
Net debt
|
| | | $ | 3,129,434 | | | | | $ | 3,638,817 | | |
|
Debt/Income (loss) from continuing operations(6)
|
| | | | (188.2) | | | | | | (29.5) | | |
|
Net debt/EBITDA, as adjusted(7)
|
| | | | 5.2 | | | | | | 4.6 | | |
|
|
| |
2024 Proxy Statement
|
| |
91
|
|
|
|
| |
2024 Proxy Statement
|
| |
92
|
|
| | | |
OUR COMMITMENT TO SUSTAINABILITY
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Investing in corporate responsibility and sustainability is core to our business strategy and reflects our continued commitment to create a more comfortable world for every body, so we challenge ourselves to improve our environmental performance every day.
You can help. We encourage our stockholders to enroll in voluntary electronic delivery of future proxy materials. Electronic delivery allows us to provide you with the information you need for the Annual Meeting, while reducing environmental impacts and costs.
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Sign up online at www.proxyvote.com |
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Scan the QR code with your mobile device to go to www.proxyvote.com |
| |
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FASTER
|
| |
|
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ECONOMICAL
|
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CLEANER
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CONVENIENT
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Combined with your adoption of electronic delivery of proxy materials, and the elimination of
nearly 120,000 sets of proxy materials, we can ideally reduce the impact on the environment by: |
|
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|
| |
using approximately 230 fewer tons of wood, or 1,370 fewer trees (over 21 acres of forest)
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| | |
saving approximately 1.23 million gallons of water, or the equivalent of filling approximately 56 swimming pools
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using approximately 1.46 billion fewer BTUs, or the equivalent of the amount of energy used by 1,740 residential refrigerators for one full year
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eliminating approximately 67,400 pounds of solid waste
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using approximately 1.03 million fewer pounds of greenhouse gases, including CO2, or the equivalent of 94 automobiles running for one year
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reducing hazardous air pollutants by over 91 pounds
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Minimum 15 minutes delayed. Source: LSEG