UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
(Amendment No.   )
Filed by the Registrant ☒
Filed by a Party other than the Registrant ☐
Check the appropriate box:
 
 Preliminary Proxy Statement
 
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
 Definitive Proxy Statement
 Definitive Additional Materials
 Soliciting Material Pursuant to §240.14a-12
DOMINO’S PIZZA, INC.
(Name of registrant as specified in its charter)
(Name of person(s) filing proxy statement, if other than the registrant)
Payment of Filing Fee (Check the appropriate box):
 No fee required.
 Fee paid previously with preliminary materials.
 Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.
 
 
 


 

LOGO

Notice of 20232024 Annual Meeting of Shareholders

and Proxy Statement

Virtual Annual Meeting

Tuesday,Thursday, April 25, 20232024

10:00 a.m. Eastern Time

www.virtualshareholdermeeting.com/DPZ2023DPZ2024

For further information, please callcontact Domino’s Investor Relations at 734-930-3925.investorrelations@dominos.com.

 


 

 

 LOGO

 

Dear Fellow Shareholders,

We are pleased to invite you to attend our 20232024 Annual Meeting of Shareholders (the “Annual Meeting”) on Tuesday,Thursday, April 25, 2023,2024, at 10:00 a.m. Eastern Time, to be held exclusively online via live webcast. The virtual-only format will allow our shareholders the option to participate in the live, online meeting from any location convenient to them, providing shareholder access to our Board and management and enhancing participation. Shareholders who hold shares as of the record date for the Annual Meeting will be able to participate in the virtual meeting online and vote their shares electronically by visiting www.virtualshareholdermeeting.com/DPZ2023DPZ2024. Details regarding how to participate in the webcast of the Annual Meeting and the business to be conducted at the Annual Meeting are provided in the accompanying Notice of 20232024 Annual Meeting of Shareholders (the “Notice”) and Proxy Statement.

We remain a purpose-inspired and performance-driven company with exceptional people committed to feeding the power of possible, one pizza at a time. While we are proud to be the largest pizza company in the world, we remain dedicated to getting better every day. Fiscal 2022 was a challenging year in many respects, but also a year of sharpeningThroughout 2023, we sharpened our focus on the many opportunities we have for continuous improvement and doubling down onunveiled an exciting new five-year strategic vision rooted in our commitment to future growth and success.success through our “Hungry for MORE” strategy. Your Board of Directors continues to be stewards of the Company and has maintained our focus on our customers, our team members, our franchisees, our communities and you, our shareholders, to ensure long-term value creation for all stakeholders.

We believe that the foundation of Domino’s continued resilience through the challenges and uncertainty over the past few years has beenremains its strong corporate governance and an exceptional leadership team, together with our ongoing commitment to our values. We thank you for the opportunity to continue serving you and the Company and appreciate the opportunity to share our progress and governance enhancements over this past fiscal year.

The Proxy Statement contains important information for you to consider when deciding how to vote on the matters brought before the Annual Meeting. Please read it carefully. Whether or not you plan to join us for the Annual Meeting, it is important that your shares be represented. We encourage you to submit your proxy by telephone, by mail or by logging into www.proxyvote.com after reading the Notice and Proxy Statement. We look forward to your participation.

Thank you for your continued support of Domino’s.

Sincerely,

 

LOGO

David A. Brandon

Executive Chairman of the Board of Directors

 


 

Notice of Annual Meeting of Shareholders

 

 LOGO

 

Domino’s Pizza, Inc.

30 Frank Lloyd Wright Drive

Ann Arbor, Michigan 48105

(734) 930-3030

To the Shareholders of Domino’s Pizza, Inc.:

Notice is hereby given that the 20232024 Annual Meeting of Shareholders (the “Annual Meeting”) of Domino’s Pizza, Inc. (the “Company”) will be held virtually via live webcast at www.virtualshareholdermeeting.com/DPZ2023DPZ2024 on Tuesday,Thursday, April 25, 20232024 at 10:00 a.m. Eastern Time. To provide a more inclusive experience for our shareholders and reach a greater number of shareholders in as efficient a manner as possible, the Annual Meeting will be held exclusively online. There will not be a physical location for the Annual Meeting, and you will not be able to attend the meeting in person. You will be able to attend the meeting online, vote your shares electronically and submit questions during the meeting by visiting the website listed above. To be admitted to the Annual Meeting at www.virtualshareholdermeeting.com/DPZ2023DPZ2024, you must enter the control number on your proxy card, voting instruction form, or Notice of Internet Availability you previously received.

The Annual Meeting will be held for the following purposes, all of which are set forth in the accompanying Proxy Statement:

 

 1.

To elect the nine director nominees named in the Proxy Statement, each to serve for a one-year term, until their respective successors are duly elected or qualified or until his or her earlier death, resignation or removal;

 

 2.

To ratify the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Company for the 20232024 fiscal year;

 

 3.

To hold an advisory and non-binding vote on the compensation of the Company’s named executive officers;

 

 4.

To hold an advisory and non-binding voteact on the frequency of future advisory votes on the compensation of the Company’s named executive officers;shareholder proposal described in this Proxy Statement, if properly presented; and

 

 5.

To transact such other business as may properly come before the meeting.

Shareholders of record at the close of business on March 1, 20232024 are entitled to notice of and to vote at the Annual Meeting and any adjournments or postponements thereof.

The Proxy Statement contains important information for you to consider when deciding how to vote on the matters brought before the Annual Meeting. Please read it carefully.

By order of the Board of Directors,

 

LOGO

Kevin S. Morris

Executive Vice President, General Counsel

and Corporate Secretary

March 16, 202315, 2024

 

  HOW TO VOTE       

INTERNET

VIA COMPUTER

 

LOGO

  

TELEPHONE

 

 

LOGO

  

MAIL

 

 

LOGO

  

DURING MEETING

 

 

LOGO

Via the Internet at

www.proxyvote.com. You will

need the 16-digit number

included in your notice, proxy

card or voter instruction form.

  

 

Dial toll-free ((800) 690-6903) or

the telephone number on your

voter instruction form. You will

need the 16-digit number included

in your notice, proxy card or voter

instruction form.

  

 

If you received a paper copy of

your proxy materials, send your

completed and signed proxy card

or voter instruction form using the

enclosed postage-paid envelope.

  You can vote electronically at the Annual
Meeting. See page 6 for information on
how to vote.


 

Notice of Annual Meeting of Shareholders

 

 LOGO

 

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Shareholders to be held on April 25, 2023:2024:The accompanying Proxy Statement and our 20222023 Annual Report are available atir.dominos.com. In addition, you may access these materials athttp://materials.proxyvote.com/25754A. On March 16, 2023,15, 2024, we mailed a Notice of Internet Availability of Proxy Materials to certain shareholders, containing instructions for voting online and for requesting a paper copy of the Proxy Statement and 20222023 Annual Report.

YOUR VOTE IS IMPORTANT

We are offering registered shareholders the opportunity to vote their shares electronically through the Internet or by telephone. Please see the Proxy Statement and the enclosed Proxyproxy card for details about electronic voting. You are urged to date, sign and promptly return the enclosed Proxy,proxy card, or to vote electronically through the Internet or by telephone, so that your shares may be voted in accordance with your wishes and so that the presence of a quorum at the Annual Meeting may be assured. Voting promptly, regardless of the number of shares you hold, will aid the Company in reducing the expense of additional Proxyproxy solicitation. Voting your shares by the enclosed Proxy,proxy card, or electronically, does not affect your right to vote electronically in the event you attend the virtual-only Annual Meeting. You may revoke your Proxyproxy at any time, regardless of your voting method, as fully described on page 7 of the accompanying Proxy Statement.

VIRTUAL MEETING ADMISSION

To participate in the Annual Meeting, you will need the 16-digit control number included on your proxy card or on the instructions that accompanied your proxy materials. If you wish to attend the virtual-only Annual Meeting, see “Voting Information—Virtual Shareholder Meeting” for additional instructions. The Annual Meeting will begin promptly at 10:00 a.m. Eastern Time on Tuesday,Thursday, April 25, 2023.2024. Online check-in will begin at 9:45 a.m. Eastern Time and you should allow approximately 15 minutes for the online check-in procedures.

 


 

Table of Contents

 

 LOGO

 

  Page 
PROXY SUMMARY  1 
20232024 Annual Meeting of Shareholders  1 
Meeting Agenda and Board Recommendations  1 
Director Nominees  1 
20222023 Business Highlights2
Chief Executive Officer Succession and Board Leadership  2 

Corporate Governance Highlights

 

  

 

3

 

 

 

PROXY STATEMENT

 

  

 

5

 

 

 

VOTING INFORMATION  6 
Virtual Shareholder Meeting  6 
Record Date, Issued and Outstanding Shares  6 
Quorum Requirement  6 
Voting Procedures  6 
Revocation of Proxies  7 
Broker Non-Votes  7 

Votes Required

 

  

 

7

 

 

 

PROPOSAL ONE: ELECTION OF DIRECTORS  9 
Board Membership Criteria  9 
Board Composition and Diversity  9 

Nominees for Election to One-Year Terms Expiring at the 20242025 Annual Meeting of Shareholders

 

  

 

12

 

 

 

CORPORATE GOVERNANCE AND DIRECTOR INFORMATION  1716 
Corporate Governance Overview  1716 
Nominating and Corporate Governance Committee  1918 
Compensation Committee  2019 
Audit Committee  2120 
Audit and Other Service Fees  2120 
Inclusion & Diversity Committee  2221 
Purpose and Values  2221 
Human Capital Management  2221 
Shareholder Engagement  2423 
Stewardship at Domino’s  2423 

Prohibition Against Hedging Transactions

 

  

 

2524

 

 

 

AUDIT COMMITTEE REPORT

 

  

 

2625

 

 

 

PROPOSAL TWO: RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

  

 

2726

 

 

 

STOCK OWNERSHIP INFORMATION  2827 
Security Ownership of Certain Beneficial Owners  2827 
Security Ownership of Management  2928 

Compensation Committee Interlocks and Insider Participation

 

  

 

2928

 

 

 

EXECUTIVE COMPENSATION  3029 

Compensation Committee Report

 

  

 

3029

 

 

 

COMPENSATION DISCUSSION AND ANALYSIS  3130 
Executive Summary  3130 
Compensation Program Overview  3332 
Compensation Philosophy and Process  3433 
Components of Total Direct Compensation  3836 
Other Elements of Compensation  4645 
Compensation for Chief Executive Officer  47
Compensation for Former Chief Executive Officer47
Compensation for Chief Financial Officer4846 
Employment Agreements  4847 
Stock Ownership Guidelines  4847 
Clawback PolicyRecoupment of Previously Paid Incentive Compensation  4947 
Tax Considerations  4947 

Risk Assessment Disclosure

 

  

 

4948

 

 

 

  Page 
EXECUTIVE COMPENSATION TABLES  5049 
Summary Compensation Table for 20222023  5049 
Grants of Plan-Based Awards  5251 
Outstanding Equity Awards at Fiscal Year-End  5452 
Option Exercises and Stock Vested  5755 
Non-Qualified Deferred Compensation  5755 
Potential Post-Employment Payments to Named Executive Officers  5856 
Pay Versus Performance  6260 

CEO Pay Ratio

 

  

 

6665

 

 

 

PROPOSAL THREE: ADVISORY VOTE TO APPROVE NAMED EXECUTIVE OFFICER COMPENSATION

  

67

66
 

PROPOSAL FOUR: ADVISORY VOTE ON FREQUENCY OF FUTURE NAMED EXECUTIVE OFFICER COMPENSATION ADVISORY VOTESSHAREHOLDER PROPOSAL  6867 
COMPENSATION OF DIRECTORS  69 
Director Compensation Table for 20222023  70 
Non-Qualified Deferred Compensation of Directors  70 

Outstanding Equity Awards of Directors

 

  

 

71

 

 

 

EQUITY COMPENSATION PLAN INFORMATION  72 

Domino’s Pizza, Inc. 2004 Equity Incentive Plan

 

  

 

72

 

 

 

CERTAIN TRANSACTIONS INVOLVING MANAGEMENT OR 5% OR GREATER SHAREHOLDERS  73 
Review and Approval of Related Person Transactions  73 
Time-Sharing Agreement with Russell J. Weiner for Use of Corporate Aircraft  73 
Time-Sharing Agreement with Richard E. Allison, Jr. for Use of Corporate Aircraft73

Employment of David A. Brandon

 

  

 

73

 

 

 

OTHER MATTERS  74 
Attending the Annual Meeting  74 
Shareholder Proposals and Director Nominations for Inclusion in Next Year’s Proxy Statement Pursuant to Rule 14a-8  74 
Shareholder Proposals and Director Nominations other thanOther Than Pursuant to Rule 14a-8  74 
Universal Proxy Rules for Director Nominations  74 
Interested Persons and Shareholder Communications to the Board of Directors  75 
“Householding” of Proxy Materials  75 

General Information

 

  

 

75

 

 

 

ANNEX A – DOMINO’S PIZZA, INC. EXECUTIVE OFFICERS AND DIRECTORS

  

A-1

 

 

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT i

 


 

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), provide a “safe harbor” for forward-looking statements to encourage companies to provide prospective information about their companies. With the exception of historical information, the matters discussed in this Proxy Statement are forward-looking statements and may be identified by the use of words such as “anticipate,” “believe,” “could,” “should,” “estimate,” “expect,” “intend,” “may,” “will,” “plan,” “predict,” “project,” “seek,” “approximately,” “potential,” “outlook” and similar terms and phrases that concern our strategy, plans or intentions, including references to assumptions. Such statements reflect our current view with respect to future events and are subject to certain risks, uncertainties and assumptions. A variety of factors could cause our future results to differ materially from the anticipated events or results expressed in such forward-looking statements. Readers should review Item 1A, Risk Factors, of our Annual Report on Form 10-K filed on February 23, 202326, 2024 for a description of important factors that could cause our future results to differ materially from those contemplated by the forward-looking statements made in this Proxy Statement. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this Proxy Statement might not occur. All forward-looking statements speak only as of the date of this Proxy Statement and should be evaluated with an understanding of their inherent uncertainty. Except as required under federal securities laws and the rules and regulations of the Securities and Exchange Commission, we will not undertake and specifically decline any obligation to publicly update or revise any forward-looking statements to reflect events or circumstances arising after the date of this Proxy Statement, whether as a result of new information, future events or otherwise.

Important Information

In this document, we rely on and refer to information regarding the U.S. quick service restaurant, or QSR, sector and the U.S. QSR pizza category from Circana®, formerly The NPD Group, ongoing foodservice market research (years ending December) prepared by Circana, as well as market research reports, analyst reports and other publicly-available information. Although we believe this information to be reliable, we have not independently verified it. U.S. sales information relating to the U.S. QSR sector and the U.S. QSR pizza category represent reported consumer spending obtained by Circana’s ongoing foodservice market research from consumer surveys. This information relates to both our Company-owned and franchised stores.

Available Information

Domino’s Pizza, Inc. makes available, free of charge, through its internet websiteir.dominos.com, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements and amendments to those reports filed or furnished pursuant to Section 13(a), 15(d), or 16 of the Exchange Act, as soon as reasonably practicable after electronically filing such material with the Securities and Exchange Commission. Materials filed with the Securities and Exchange Commission are available at www.sec.gov. Retail orders from Domino’s stores can be made through its internet website www.dominos.com. The reference to these website addresses anywhere in this Proxy Statement does not constitute incorporation by reference of the information contained on the websites and information appearing on those websites, including ir.dominos.com, biz.dominos.com, stewardship.dominos.com and www.dominos.com, should not be considered a part of this document.

 

 

 

ii DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT


 

Proxy Summary

 

 LOGO

 

This summary highlights information discussed in more detail elsewhere in this Proxy Statement. As this is only a summary, we encourage shareholders to read the entire Proxy Statement and our Annual Report on Form 10-K filed with the SEC on February 23, 202326, 2024 (the “2022“2023 10-K”) before voting their shares. As used in this Proxy Statement, references to the “Company” or “Domino’s,” or the first-person notations of “we” and “our,” refer to Domino’s Pizza, Inc.

20232024 Annual Meeting of Shareholders

 

    

Date and Time

 

 

Virtual Meeting Site

 

 

Record Date

 

  

Mailing Date

 

Tuesday,Thursday, April 25, 20232024

10:00 a.m. Eastern Time

 

Participate in the Annual Meeting by visiting our Annual Meeting website at

www.virtualshareholdermeeting.com/DPZ2023DPZ2024

 

March 1, 20232024

  

On or about

March 16, 202315, 2024

Meeting Agenda and Board Recommendations

 

 Proposals for Your Vote  

 

Board Voting
Recommendation

 Required
Vote
 Page
Reference

 

 Proposal 1: Election of Directors

  

 

FOR each

Nominee

 

 

Plurality of Votes Cast(1)

 

 

 

9

 

 Proposal 2: Ratification of Independent Registered Public Accounting Firm

  

 

FOR

 

 

Majority of Votes Cast

 

 

2726

 

 Proposal 3: Advisory Vote to Approve Executive Compensation (“Say-on-Pay”)

  

 

FOR

 

 

Majority of Votes Cast

 

 

 

6766

 

 Proposal 4: Advisory Vote on the Frequency of the Say-on-PayShareholder Proposal Regarding Simple Majority Vote

  

 

ONE YEARNO RECOMMENDATION

 

 

PluralityMajority of Votes Cast

 

 

 

6867

(1) In uncontested director elections, this vote will be subject to the Company’s Majority Voting Policy.

Director Nominees

This table provides summary information about each director nominee. Each director stands for annual election to a one-year term. Our director elections are subject to our Majority Voting Policy.

 

Nominee  Age   Director 
Since
 Current Principal Occupation Current Committee
Memberships*
 

 

Current Public

Company Boards

Other Than Domino’s

  Age   Director 
Since
 Current Principal Occupation Current Committee
Memberships*
 

 

Current Public

Company Boards

Other Than Domino’s

        A C I&D NCG          A C I&D NCG  

David A. Brandon

 70 1999 Executive Chairman of Domino’s Pizza, Inc.     

DTE Energy Co.

 

MillerKnoll, Inc.

 71 1999 Executive Chairman of Domino’s Pizza, Inc.  

DTE Energy Co.

 

C. Andrew Ballard

 

 

50

 

 

2015

 

 

CEO and Founder of Wiser Solutions, Inc. and Founder and Managing Partner of Figtree Partners

    Chair   Etsy, Inc. 

 

51

 

 

2015

 

 

CEO and Founder of Wiser Solutions, Inc. and Founder and Managing Partner of Figtree Partners

    Chair   Etsy, Inc.

Andrew B. Balson

 

 

 

56

 

 

 

1999

 

 

 

Managing Partner of Cove Hill Partners

  

 

 

 Chair 

   

Corie S. Barry

 

 

 

47

 

 

 

2018

 

 

 

CEO of Best Buy Co., Inc.

 

 

  

 

  

 

 

Best Buy Co., Inc.

 

 

48

 

 

2018

 

 

CEO of Best Buy Co., Inc.

 

  

 

 Chair 

 

  

 

Best Buy Co., Inc.

 

Diana F. Cantor

 65 2005 Partner with Alternative Investment Management, LLC  Chair     

Universal Corporation

VICI Properties Inc.

 66 2005 Partner with Alternative Investment Management, LLC    

 

 

Universal Corporation

VICI Properties Inc.

 

Richard L. Federico

 68 2011 

Former CEO and Chairman of P.F. Chang’s China Bistro Inc.

 

     

RPT Realty

Tastemaker Acquisition Corp.

    

James A. Goldman

 64 2010 

 

Former President and CEO of Godiva Chocolatier, Inc.

     Chair  Abercrombie & Fitch Co. 65 2010 Former President and CEO of Godiva Chocolatier, Inc.     Abercrombie & Fitch Co.

Patricia E. Lopez

 61 2018 

 

 

Former CEO of High Ridge Brands Co.

   

  

Acreage Holdings Aramark

Express, Inc.

 62 2018 

Former CEO of High Ridge Brands Co.

    Chair  

 

Aramark

Express, Inc.

 

Russell J. Weiner

 

 

 

54

 

 

 

2022

 

 

 

CEO of Domino’s Pizza, Inc.

         

 

The Clorox Company

 55 2022 

CEO of Domino’s Pizza, Inc.

         

 

 

The Clorox Company

*A = Audit Committee / C = Compensation Committee / I&D = Inclusion & Diversity Committee / NCG = Nominating and Corporate Governance Committee

Our Committee memberships will change effective in April 2023 as described in “Corporate Governance and Director Information” in accordance with the normal rotation of committee members prescribed by our Corporate Governance Principles.

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 1

 


 

Proxy Summary (continued)

 

 LOGO

 

20222023 Business Highlights

Fiscal 20222023 was a challenging year in many respects, butof strong financial and operating performance for the Company and was also a year in which we sharpenedcontinued our focus on opportunities for continuous improvement in our business and doubled down onunveiled an exciting new five-year strategic vision rooted in our commitment to future growth and success. Amid an ever-changingsuccess through our “Hungry for MORE” strategy, which is our plan to deliver MORE sales, MORE stores and challenging global operating environment, which included significant inflationary pressures in our commodity, labor and fuel costs as well as an unexpected negative impact of changes in foreign currency exchange rates, we continued to stay focused on our stakeholders – our customers, team members, franchisees, communities and shareholders. We adapted to these challenges inMORE profits.

In fiscal 2022, growing global retail sales, excluding2023, the impact of foreign currency, increasing our global store count and investing in our people,Company saw growth across its business globally, while staying true to our values as an organization. We believe that our consistent focus on our stakeholders has allowed us to continue to grow our market share in the U.S. quick service restaurant (“QSR”) pizza category, as we did in 2022.

While our financial performance ultimately fell short of our plan as described in “Compensation Discussion and Analysis” beginning on page 31, we maintained strong levels of profitability across the business in fiscal 2022, especially when compared against our financial performance in fiscal 2019 prior to the onset of the COVID-19 pandemic. Throughout the year, we continued to focus on leading with innovation, providing great value to our customers, and leveraging our scale for growth. We also delivered our 2930th consecutive year of global retail sales growth, excluding the impact of foreign currency, reinforcing our position asand remain the number onelargest pizza company in the world. The Company’s sales performance continues to show comparable strength within QSR pizza and the overall QSR industry, with a four-year U.S. retail sales cumulative average growth rate of 6.4%. This growth compares favorably to the cumulative average market share growth rates of the QSR pizza and overall QSR segments, which were up 1.7% and 4.3%, respectively, over that same period according to data provided by Circana for the year ending December 2023. Overall, the Company’s global retail sales, excluding foreign currency impact, increased an average of 7.9% year-over-year over the same period.

Amid an ever-changing and uncertain global operating environment, the Company continued to stay focused on its stakeholders – its customers, team members, franchisees, communities and shareholders – and delivered a return to strong performance across the business in fiscal 2023 and an increase in the Company’s stock price during this same period.

 

  

Fiscal 20222023 global retail sales growth (excluding foreign currency impact)impact and the impact of the Russia market) of +3.9%5.4%

 

  

Fiscal 2022 diluted EPS2023 U.S. same store sales growth of $12.531.6%

; international same store sales growth of 1.7%

 

  

Opened 1,032711 net new stores worldwide in fiscal 2022, including our2023 (excluding closure of the Russia market, global net stores grew by 19,000870 th store

for fiscal 2023)

 

Announced becoming the number one carryout pizza company in the United States

Income from operations up 6.7% in fiscal 2023 (excluding $21.2 million pre-tax refranchising gain recorded in the fourth quarter of 2022, income from operations up 9.7% for fiscal 2023)

 

For a description of how the Company calculates same store sales (as discussed below) and global retail sales, excluding foreign currency impact, and net store growth, which are commonly-used statistical measures in the QSR industry that we believe are important to understanding our financial performance, see page 36pages 37 and 38 in our 2022 2023 10-K.

Total Shareholder Return:

 

 

LOGOLOGO

 

Through December 30, 2022;29, 2023; includes reinvestment of dividends.

Chief Executive Officer Succession and Board Leadership

Effective May 1, 2022, the Company’s Board of Directors (the “Board of Directors” or “Board”) appointed Russell J. Weiner to serve as the Company’s Chief Executive Officer in connection with Richard E. Allison, Jr.’s retirement from the Company. As part of this CEO succession, David A. Brandon transitioned from Chairman of the Board to the newly established position of Executive Chairman on May 1, 2022 and C. Andrew Ballard was appointed as Presiding Director, the lead independent director of the Board, at that time. The Board believes that Mr. Brandon’s role as Executive Chairman has provided continued leadership of the Board and a valuable resource to both Mr. Weiner and the Board and has facilitated a smooth transition of the CEO role. In his role as Presiding Director, Mr. Ballard has significant authority in terms of leadership as well as in the ability to convene the Board to ensure that there is a free flow of information among the Company’s independent directors.

 

 

 

2 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT


 

Proxy Summary (continued)

 

 LOGO

 

Corporate Governance Highlights

Domino’s demands integrity and is committed to upholding high ethical standards. Our strong corporate governance practices support this commitment and provide a framework within which our Board of Directors and management can pursue the strategic objectives of the Company and ensure long-term growth for the benefit of our shareholders. Our Board of Directors monitors developments in governance at peer companies and in general to assure that it continues to meet its commitment to thoughtful and independent representation of shareholder interests. Highlights of our corporate governance practices are summarized below and are discussed in more detail in the “Corporate Governance and Director Information” section beginning on page 17.16.

Independence and Leadership Structure:

 

All director nominees, other than the CEO and Executive Chairman, are independent

 

Separate Executive Chairman, Presiding Director and Chief Executive Officer leadership structure to maintain independence between Board oversight and the operating decisions of the Company

 

Fully independent Board committees

 

Independent directors, led by the Presiding Director, regularly meet in private independent director sessions without management present

Board Practices:

 

Board of Directors and each Board committee conducts an annual self-assessment

 

Limited number of outside public company boards on which our directors can serve

Robust director orientation program for incoming directors and annual continuing education budget is provided for each director

 

Directors generally may not stand for reelection after age 75

 

Board tenure balances fresh perspectives with institutional knowledge

 

Structured process for the Board’s risk oversight, and including cybersecurity risk

Board engagement and oversight related to environmental, social and governance (“ESG”) matters

 

Board oversight of and active engagement in CEO and other senior leadership succession planning

Accountability:

 

All directors stand for election annually

 

In uncontested director elections, our Majority Voting Policy applies

 

Shareholder right to include director nominees in our Proxy Statement via a “proxy access” right

All directors are subject to anti-pledging and anti-hedging provisions under our Insider Trading Policy

 

Annual advisory vote on executive compensation

 

We regularly engageRegular engagement with major shareholders to seek their input on issues and to address their questions and concerns

Stock Ownership Requirements:

Stock ownership requirements must be met within five years of appointment, as follows:

Directors: 5x annual retainer fee

CEO: 5x annual base salary

President-level executives: 4x annual base salary

Other executives: 3x annual base salary

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 3

 


 

Proxy Summary (continued)

 

 LOGO

 

Stock Ownership Requirements:

Stock ownership requirements must be met within five years of appointment, as follows:

CEO: 6x annual base salary

Directors: 5x annual retainer fee

President-level executives: 4x annual base salary

Other executives: 3x annual base salary

Inclusion and Diversity

 

Diversity of experience and skills on our Board

 

44% of directors are diverse as to gender, ethnicity and/or race

 

Standing Inclusion & Diversity Committee of the Board that oversees the Company’s inclusion and diversity progress and efforts

Provide enhanced disclosure of racial, ethnic and gender diversity of our corporate workforce, along with the breakdown of our corporate workforce by race, ethnicity and gender from our consolidated EEO-1 report

 

 

Additional highlights regarding our 20222023 business performance and changes made to our executive compensation

program during fiscal 2022 and expected changes for future years2023 can be found under the

“Compensation Discussion and Analysis—Executive Summary” beginning on page 31.30.

 

 

 

 

4 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT


 

Proxy Statement

 

 LOGO

 

This Proxy Statement is furnished in connection with the solicitation of Proxiesproxies by the Board of Directors of Domino’s Pizza, Inc. for use at the Company’s 20232024 Annual Meeting of Shareholders (the “Annual Meeting”) to be held on Tuesday,Thursday, April 25, 20232024 at 10:00 a.m. Eastern Time virtually via live webcast at www.virtualshareholdermeeting.com/DPZ2023DPZ2024, and at any adjournment or postponement thereof. The Company has made these materials available to you on the Internet or, upon your request, has delivered printed copies to you by mail or electronic versions by e-mail. The Company will pay the expenses of solicitation of Proxies.proxies. We will request banks, brokers and other custodians, nominees and fiduciaries to solicit Proxiesproxies from their customers and will reimburse those banks, brokers and other custodians, nominees and fiduciaries for reasonable out-of-pocket costs for this solicitation. Further solicitation of Proxiesproxies may be made by mail, personal interview and/or telephone by officers, directors and other employees of the Company, none of whom will receive additional compensation for assisting with the solicitation.

This Proxy Statement, along with the Notice of Annual Meeting of Shareholders and form of Proxy,proxy card, was first made available to shareholders on or about March 16, 2023.15, 2024.

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 5

 


 

Voting Information

 

 LOGO

 

Virtual Shareholder Meeting

To provide a more inclusive experience for our shareholders and reach a greater number of shareholders in as efficient a manner as possible, the Annual Meeting will be held exclusively online via live webcast. There will not be a physical location for the Annual Meeting, and you will not be able to attend the meeting in person. The virtual-only format will allow all of our shareholders the option to participate in the live, online meeting from any location convenient to them, providing shareholder access to our Board and management and enhancing participation.

Shareholders at the close of business on March 1, 20232024 will be allowed to communicate with us and submit questions in our virtual Annual Meeting forum immediately before and during the meeting. All directors and key executive officers are expected to be available to answer questions. We will endeavor to answer as many questions submitted by shareholders as time permits. If we receive substantially similar questions, we may group such questions together and provide a single response to avoid repetition. We reserve the right to exclude questions regarding topics that are not pertinent to meeting matters or Company business.

In the event of technical difficulties with the Annual Meeting, we expect that an announcement will be made on www.virtualshareholdermeeting.com/DPZ2023DPZ2024. If necessary, the announcement will provide updated information regarding the date, time and location of the Annual Meeting. Any updated information regarding the Annual Meeting will also be posted on our Investor Relations website at ir.dominos.com.

To be admitted to the Annual Meeting at www.virtualshareholdermeeting.com/DPZ2023DPZ2024, you must enter the control number on your proxy card, voting instruction form, or Notice of Internet Availability you previously received. You will also be able to vote your shares electronically at the meeting.

For further information on voting at the Annual Meeting, please see the “Voting Procedures” section below. No recording of the Annual Meeting is allowed, including audio and video recording.

Record Date, Issued and Outstanding Shares

The record date for the determination of shareholders entitled to notice of and to vote at the Annual Meeting was the close of business on March 1, 20232024 (the “Record Date”). On the Record Date, there were 35,418,35234,828,815 shares of common stock, $0.01 par value per share, the Company’s only voting securities, outstanding and entitled to vote at the Annual Meeting. Each share of common stock is entitled to one vote.

Quorum Requirement

Under the Company’s By-Laws, the holders of a majority of the shares of common stock outstanding and entitled to vote at the Annual Meeting constitute a quorum for the transaction of business at the Annual Meeting. Shares of common stock represented in person or by proxy, including shares that abstain or do not vote with respect to one or more of the matters presented for shareholder approval, will be counted for purposes of determining whether a quorum is present.

Voting Procedures

The holders of common stock are entitled to one vote per share on any proposal presented at the Annual Meeting. Only shareholders of record at the close of business on the Record Date are entitled to notice of and to vote at the Annual Meeting and at any adjournment or postponement thereof. Shareholders may choose to vote by any of the following methods: (i) by returning the enclosed proxy card, (ii) electronically by accessing the Internet site or by using the toll-free telephone number, both of which are stated on the form of Proxy,proxy, or (iii) by attending the live webcast and voting your shares online during the Annual Meeting. If you have any questions about www.proxyvote.com or your control number, please contact the bank, broker, or other organization that holds your shares. The availability of online voting may depend on the voting procedures of such organization.

All properly executed Proxiesproxy cards received by mail, and properly authenticated electronic votes recorded through the Internet or by telephone, will be voted as directed by the shareholder. All properly executed Proxiesproxy cards received by mail that do not

 

 

 

6 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT


 

Voting Information (continued)

 

 LOGO

 

that do not specify how shares should be voted will be voted in accordance with the Board’s recommendation (“FOR” the election of all director nominees under Proposal One, “FOR” Proposal Two, “FOR” Proposal Three and “ONE YEAR”“ABSTAIN” for Proposal Four).

Revocation of Proxies

Any Proxyproxy given pursuant to this solicitation may be revoked at any time before it is voted by: (i) signing and returning a new Proxyproxy card with a later date, (ii) submitting a later-dated vote by telephone or via the Internet, (iii) filing with our Corporate Secretary a written notice of revocation dated later than the date of the Proxyproxy being revoked or (iv) attending the live webcast and casting a new vote online during the Annual Meeting. Any written notice of revocation should be sent to: Corporate Secretary, Domino’s Pizza, Inc., 30 Frank Lloyd Wright Drive, Ann Arbor, Michigan 48105.

The Internet and telephone procedures for voting and for revoking or changing a vote are designed to authenticate shareholders’ identities, to allow shareholders to give their voting instructions and to confirm that shareholders’ instructions have been properly recorded. Shareholders that vote through the Internet should understand that there may be costs associated with electronic access, such as usage charges from Internet access providers and telephone companies, which will be borne by the shareholder.

Broker Non-Votes

Brokers are subject to the rules of the New York Stock Exchange (the “NYSE”). The NYSE rules direct that certain matters submitted to a vote of shareholders are “routine” items and brokers generally may vote on behalf of beneficial owners who have not furnished voting instructions, subject to the rules of the NYSE concerning transmission of proxy materials to beneficial owners, and subject to any proxy voting policies and procedures of those brokerage firms. Brokers who hold shares in “street name” for customers who are beneficial owners of such shares are prohibited from giving a proxy to vote such customers’ shares on “non-routine” matters in the absence of specific instructions from such customers.

Under the current NYSE rules, we believe Proposal Two is a routine matter. Accordingly, if your broker holds shares that you own in street name, the broker may vote your shares on Proposal Two even if the broker does not receive instructions from you. We believe Proposal One, Proposal Three and Proposal Four are non-routine matters and, therefore, the broker may not vote your shares on such proposals without receiving instructions from you. If your broker does not vote on a proposal, this is commonly referred to as a “broker non-vote.” Broker non-votes will not be counted as having been voted in person or by proxy, but pursuant to Delaware corporate law, will be counted for purposes of determining whether a quorum is present.

Votes Required

Under Proposal One, directors are elected by a plurality of the votes of the shares of common stock represented and voted at the Annual Meeting. If you withhold your vote for a particular nominee, then your vote will not count “FOR” such nominee. Votes withheld, as well as broker non-votes, will not be treated as votes cast with respect to the election of directors and, therefore, will have no effect on the outcome of the election of directors.

In addition, we have implemented a Majority Voting Policy for uncontested director elections (elections in which the number of nominees for election is equal to the number of directors to be elected). In the event that the votes “WITHHELD” from a nominee’s election exceed the votes cast “FOR” that nominee’s election, such nominee shall be required to promptly submit his or her resignation to the Board of Directors for consideration. The Board of Directors will then have the opportunity to determine whether to accept or reject such tendered resignation. The Board of Directors, in making its decision, may consider any factors or other information that it considers appropriate or relevant. The Board of Directors will act within 120 days following certification of the shareholder vote, and thereafter, will promptly publicly disclose, in a report furnished to the Securities and Exchange Commission (“SEC”), its decision and process regarding the tendered resignation, including its rationale for accepting or rejecting the tendered resignation. If the Board of Directors accepts a director’s resignation, or if a nominee for director is not elected and the nominee is not an incumbent director, then the Board of Directors, in its sole discretion, may fill any resulting vacancy or may decrease the

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 7

 


 

Voting Information (continued)

 

 LOGO

 

size of the Board of Directors, in each case pursuant to our By-Laws. If a director’s resignation is not accepted by the Board of Directors, such director will continue to serve until the next annual meeting of shareholders and until his or her successor is duly elected, or his or her earlier death, resignation or removal.

Approval of Proposal Two (ratification of independent registered public accounting firm) and, Proposal Three (say-on-pay) and Proposal Four (shareholder proposal regarding simple majority vote) requires the affirmative vote of a majority of the shares voted in person or by proxy at the Annual Meeting. For Proposal Four (frequency of say-on-pay), the frequency receiving a plurality of shares voted in person or by proxy at the Annual Meeting will be taken into consideration by the Board of Directors in determining how often an advisory vote on executive compensation will be submitted to shareholders in the future. Broker non-votes, if any, and abstentions will not be treated as votes cast with respect to these proposals and, therefore, will have no effect on the outcome of the votes. As noted above, under the current NYSE rules, we believe Proposal Two is a routine matter. Accordingly, if your broker holds shares that you own in street name, the broker may vote your shares on Proposal Two even if the broker does not receive instructions from you.

No matter is currently expected to be considered at the Annual Meeting other than those listed in this Proxy Statement. If any other matters are properly brought before the Annual Meeting for action, it is intended that the persons named in the Proxyproxy and acting thereunder will vote in accordance with their discretion on such matters.

 

 

 

8 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT


 

Proposal One: Election of Directors

 

 LOGO

 

The Company’s Certificate of Incorporation, as amended and restated, requires that all directors stand for annual election. Accordingly, the nine individuals listed below are standing for election to terms ending with the 20242025 annual meeting of shareholders, until his or her successor is duly elected or qualified or until his or her earlier death, resignation or removal. Each nominee has indicated his or her willingness to serve, if elected. However, should a nominee be unable to serve, the shares of common stock represented by Proxiesproxies may be voted for a substitute nominee designated by the Board. Management has no reason to believe that any of the above-mentioned persons will not serve his or her term as a director.

Board Membership Criteria

Although our Nominating and Corporate Governance Committee does not have any specific, delineated qualifications for the nomination of director candidates, the Committee takes into accountconsiders a number of factors, qualifications and skills that it deems appropriate, with the primary goal of ensuring the Board collectively serves the interest of shareholders. The Company and the Board, at a minimum, seek to have directors with sound business judgment, wisdom and knowledge in his or her field of expertise. Directors should also possess the highest personal and professional ethics, integrity and values and be committed to representing the long-term interests of our shareholders. Identified and described below are additional key attributes, qualifications, experiences and skills that are important to the Company’s business and that are considered in the selection of the director nominees, which factors may change from time to time. Director candidates are also evaluated according to the qualifications set forth in the Board’s Corporate Governance Principles, as further described beginning on page 20.18.

 

 

Business experience. The Company and the Board believe that the Company benefits from nominating directors with a substantial degree of business experience. This may include accomplishments in his or her particular field of practice and a history of achievements that reflect his or her high standards and sound business decisions.

 

 

Leadership experience. The Company and the Board believe that directors with experience in significant leadership positions over an extended period, especially President or Chief Executive Officer positions, provide the Company with strategic insights. These directors generally possess superior leadership qualities and the ability to identify and develop those qualities in others. They demonstrate a practical understanding of organizations, long-term strategy, risk management and the methods to drive change and growth.

 

 

Finance experience. The Company and the Board believe an understanding of finance and financial reporting processes is an important skill for our directors. The Company uses financial measures to evaluate its performance as well as its accomplishment of financial performance targets. In addition, the Board and the Audit Committee oversee the required public disclosures of the Company that include financial statements and related information.

 

 

Educational and industry experience. The Company and the Board seek to have directors with relevant education, business expertise and experience as executives, directors, investors or in other leadership positions in the retail sector, including the restaurant industry.

Board Composition and Diversity

We believe that each of our nine director nominees has met the qualifications set forth in the Board’s Corporate Governance Principles and believe these nominees are a highly engaged group and represent a diverse and broad range of attributes, qualifications, experiences and skills to provide an effective mix of viewpoints and knowledge.

While the Nominating and Corporate Governance Committee does not have a written policy regarding diversity in identifying director candidates or specific goals with respect to diversity on the Board, the Nominating and Corporate Governance Committee considers diversity, including gender, racial and ethnic diversity, age, skills, experience, including business, financial and academic backgrounds, and such other factors as it deems appropriate, in its search for the best candidates to serve on the Board, and the Inclusion and& Diversity Committee reviews and monitors the Company’s efforts in ensuring appropriate diversity on the Board. These committees look to ensure demographic diversity in addition to a diversity of skills, experiences (including operational experience) and viewpoints, all aimed at identifying candidates who will contribute to Board decision-making and oversight responsibilities. The committees believe that the current composition of the Board reflects diversity across these categories. Our current directors bring a diverse set of skills, experiences and viewpoints to the Company that are important to drive our strategy forward as the market and competitive landscapelandscapes evolve.

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 9

 


 

Proposal One: Election of Directors (continued)

 

 LOGO

 

All our director nominees except Mr. Brandon and Mr. Weiner are independent. The following provides additional information about our nine director nominees.

 

                    FOUR OF NINE DIRECTOR NOMINEES ARE DIVERSE
AS TO GENDER, ETHNICITY OR RACE
LOGOLOGO

 

 

 

10 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT


 

Proposal One: Election of Directors (continued)

 

 LOGO

 

The matrix below summarizes certain key attributes, qualifications, experiences and skills that our director nominees bring to the Board that we believe are most relevant to service on our Board, as well as certain demographics of our director nominees. This information is intended to provide a summary of our director nominees’ qualifications and should not be considered to be a complete list of each nominee’s strengths or contributions to the Board. A mark indicates a specific area of focus or experience on which the Board relies most. The fact that a director nominee is not designated as having a particular attribute does not indicate that the nominee does not possess that attribute or would not be able to make a meaningful contribution to the Board’s decision-making or oversight in that area. Additional details on each director nominee’s attributes, qualifications, experiences and skills are set forth in their individual biographies.

 

  

 

BRANDONLOGO

LOGO

LOGO

 

 

 

BALLARD 

  BALSONLOGO

 

 

 

    BARRY    
LOGO

 

 

LOGO

 

  CANTOR  

 

 

LOGO

LOGO

 

FEDERICO 

 GOLDMAN 

    LOPEZ    

  WEINERLOGO

 

 

          
Attributes, Qualifications, Experiences and Skills
          

 

LOGO

Chief Executive Officer Experience

��
          

 

LOGO

Public Company Board and Corporate Governance Experience

          

 

LOGO

Corporate Strategy Experience

          

 

LOGO

Financial / Investment Management Experience

          

 

 

LOGO

Human Capital Management / Talent Development Experience

          

 

LOGO

Information Technology / IT Security Experience

          

 

LOGO

International / Global Operations Experience

          

 

LOGO

Marketing / Brand Management / Digital Experience

          

 

 

LOGO

Operations / Supply Chain Experience

          

 

 

 

LOGO

Restaurant / Food and Beverage Experience

          

 

 

LOGO

Retail / Franchise Experience

          

 

 

LOGO

Sustainability / ESG Experience

          
Demographics
          

Self-Identified Race/Ethnicity

Black or African American
Hispanic, Latinx or Spanish Origin
White

Self-Identified Gender

Female
Male

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 11

 


 

Proposal One: Election of Directors (continued)

 

 LOGO

 

Nominees for Election to One-Year Terms Expiring at the 20242025 Annual Meeting of Shareholders

Set forth below are the name, age, principal occupation and/or business experience and qualifications of each nominee for election as a director. All of the nominees are current members of the Board. The Nominating and Corporate Governance Committee believes that each of the nominees possesses the necessary professional experience and qualifications to contribute to the success of the Company. Information with respect to the business experience and other publicly-traded company boards on which the nominees serve, or served in the past five years, as a director is set forth below. The number of shares of Domino’s Pizza, Inc. common stock beneficially owned by each director nominee appears later in this Proxy Statement.

 

 

Our Board of Directors Unanimously Recommends a Vote FOR Each of the Nominees Listed Below

 

  

 

 

LOGOLOGO

 

David A. Brandon

Executive Chairman

 

Director since: 1999

 

Age: 7071

 

Current Committees:

None

 

David A. Brandon has served as Chairman of Domino’s Board of Directors since March 1999 and as Executive Chairman since April 2022. Mr. Brandon also served as Domino’s Chief Executive Officer from March 1999 to March 2010 and as Special Advisor from March 2010 to January 2011.

 

In addition to his position at Domino’s, Mr. Brandon currently serves as Executive Advisor to KKR & Co., Inc., one of the world’s largest private equity firms. He previously served as Chief Executive Officer of Toys “R” Us, Inc., formerly the world’s largest specialty retailer of toy and baby products, from July 2015 to December 2018. He was the Director of Athletics at the University of Michigan from March 2010 to October 2014.

 

Prior to joining Domino’s, Mr. Brandon was President and CEO of Valassis, Inc., a company in the sales promotion and coupon industries, from 1989 to 1998 and Chairman of the Board of Directors of Valassis, Inc. from 1997 to 1998.

 

In addition to serving on the Board of Directors of Domino’s, Mr. Brandon also serves on the BoardsBoard of Directors of DTE Energy Co. and MillerKnoll, Inc., as well as several private companies and non-profit organizations. He previously served on the Boards of Directors of MillerKnoll, Inc., Toys “R” Us, Inc., Burger King Corporation, Kaydon Corporation, Northwest Airlines and The TJX Companies, Inc.

 

 

 

Qualifications:

Mr. Brandon served as the Company’s Chief Executive Officer for eleven years and has served as Chairman of the Board since 1999 and as Executive Chairman since 2022. He thereby possesses a deep understanding of the Company’s operations, market development objectives, strategic planning and other internal business aspects of the Company. Mr. Brandon brings to the Board extensive executive experience in marketing and sales. His service on the Boards of Directors of several other companies, including retailers, also makes him qualified for service as a director of the Company.

 

 
 
   

LOGOLOGO

 

C. Andrew Ballard

Presiding Director

(Lead Independent Director)

 

Director since: 2015

 

Age: 5051

 

Current Committees:

Inclusion & Diversity (Chair)

Compensation

 

 

C. Andrew Ballard currently serves as the Chief Executive Officer and Founder of Wiser Solutions, Inc., a software and data company, a position he has held since December 2012. Mr. Ballard is also Founder of Figtree Partners, an investment firm focused on software and technology, and has served as its Managing Partner since November 2012. He was previously a Senior Advisor at the private equity firm Hellman & Friedman LLC from 2012 to 2019, where he also served as Managing Director from 2006 to 2012 and as a Director from 2004 to 2006. Prior to joining Hellman & Friedman in 2003, Mr. Ballard worked at Bain Capital, LLC in San Francisco and Boston, as well as Bain & Company, Inc. from 1994 to 2002.

 

Mr. Ballard has served on Domino’s Board of Directors since July 2015 and has served as Presiding Director since May 2022. Mr. Ballard serves as the Chairperson of the Inclusion & Diversity Committee and is a member of the Compensation Committee of the Board of Directors.

 

In addition to serving on Domino’s Board of Directors, Mr. Ballard serves on the Boards of Directors of Etsy, Inc., Datacor, Inc. and Zignal Labs, and has held previous board roles atLabs. Mr. Ballard previously served on the Boards of Directors of Activant Solutions Inc., Catalina Marketing Corporation, DoubleClick Inc., Getty Images, Inc., Internet Brands, Inc. and Vertafore, Inc. Mr. Ballardand was the Chair of the Board of Trustees and Chair of the Investment Committee of the San Francisco Foundation.

 

 

 

Qualifications:

Mr. Ballard brings to the Board strategic business and acquisition experience, as well as overall business acumen through his experience at Hellman & Friedman and Bain Capital. Mr. Ballard also provides valuable technology and digital knowledge, making him qualified for service as a director of the Company.

 

  
  
 

 

 

 

12 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT


 

Proposal One: Election of Directors (continued)

 

 LOGO

 

 

 

LOGO

LOGO

Andrew B. Balson

Independent Director

 

Director since: 1999

 

Age: 5657

 

Current Committees:

Compensation (Chair)

Nominating and Corporate Governance

 

Andrew B. Balson is currently the Managing Partner of Cove Hill Partners, L.P., a firm formed to make private equity investments. Previously, Mr. Balson was the Chief Executive Officer of Match Beyond, an innovative college completion program that helps low-income young adults attain college degrees and prepare for the workforce, a position he held from January 2015 to June 2016. Prior to becoming the Chief Executive Officer of Match Beyond, Mr. Balson was a Managing Director at Bain Capital, LLC, a global investment company, from 2001 to 2013. Mr. Balson became a Principal of Bain Capital in January 1998.

 

Mr. Balson has served on Domino’s Board of Directors since March 1999 and serves as the Chairperson of the Compensation Committee of the Board of Directors. Mr. Balson’s service as the Chairperson of the Compensation Committee will end in April 2023 in accordance with the normal rotation of committee members prescribed by our Corporate Governance Principles. Mr. Balson will remainis a member of the Compensation Committee following this rotation in April 2023 and will serve as a member of the Nominating and Corporate Governance Committee. Committee of the Board of Directors.

Mr. Balson previously served on the Boards of Directors of Bloomin’ Brands, Inc., FleetCor Technologies, Inc., Dunkin’ Brands, Inc., Skylark Co., Ltd., BELLSYSTEM24, Inc., Burger King Corporation and Bright Horizons Family Solutions, Inc., as well as numerous Mr. Balson currently serves on the Boards of a number of private companies.

 

 

 

Qualifications:

Mr. Balson brings to the Board strategic acquisition experience, a high level of financial literacy and overall business acumen through his executive experience at Bain Capital, LLC and Cove Hill Partners, L.P. His public and private company directorship experience and his familiarity with the Company and other restaurant companies, as well as his extended tenure on our Board, make him qualified for service as a director of the Company.

 

  

LOGO

LOGO

Corie S. Barry

Independent Director

 

Director since: 2018

 

Age: 4748

 

Current Committees:

Audit

Inclusion & DiversityCompensation (Chair)

 

 

Corie S. Barry currently serves as Chief Executive Officer and as a member of the Board of Directors of Best Buy Co., Inc., a specialty retailer of consumer electronics, personal computers, entertainment software and appliances, roles held since June 2019. Prior to becoming CEO, Ms. Barry served as Best Buy’s Senior Executive Vice President and Chief Financial and Strategic Transformation Officer from June 2016 to June 2019, Chief Strategic Growth Officer from October 2015 to June 2016, Interim President of Geek Squad Services from March 2015 to May 2016, Senior Vice President of Domestic Finance from May 2013 to October 2015 and in a variety of financial and operational roles, both in the field and at the corporate campus, since joining Best Buy in 1999. Prior to Best Buy, Ms. Barry worked at Deloitte Touche Tohmatsu Limited from 1997 to 1999.

 

Ms. Barry has served on Domino’s Board of Directors since July 2018 and is a memberthe Chairperson of the Audit Committee and the Inclusion & DiversityCompensation Committee of the Board of Directors. Ms. Barry’s service on these two committees will end in April 2023 at which time she will become the Chairperson of the Compensation Committee in accordance with the normal rotation of committee members prescribed by our Corporate Governance Principles.

 

 

 

Qualifications:

Ms. Barry brings to the Board experience leading a public company, vast financial expertise, retail operations and strategic growth know-how and overall business acumen, making her qualified for service as a director of the Company.

 
 
 

 

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    13


Proposal One: Election of Directors (continued)

LOGO

LOGO

LOGO

Diana F. Cantor

Independent Director

 

Director since: 2005

 

Age: 6566

 

Current Committees:

Audit (Chair)Inclusion & Diversity

Nominating and Corporate Governance

 

Diana F. Cantor is currently a Partner at Alternative Investment Management, LLC, a position she has held since January 2010, and is past Chairman of the Virginia Retirement System, where she served as a Trustee and a member of the Audit and Compliance Committee from 2010 to 2020. She also serves as a Senior Adviser with AKF Consulting Group, focusing on the areas of governance, fiduciary duties and oversight of state-run investment programs.

 

Ms. Cantor has served on Domino’s Board of Directors since October 2005 and serves as the Chairperson of the Audit Committee of the Board of Directors. Ms. Cantor’s service as the Chairperson of the Audit Committee will end in April 2023 at which time she will becomeis a member of the Inclusion & Diversity Committee and a member of the Nominating and Corporate Governance Committee in accordance withof the normal rotationBoard of committee members prescribed by our Corporate Governance Principles.Directors.

 

In addition to serving on Domino’s Board of Directors, Ms. Cantor serves on the public company Boards of Directors of Universal Corporation (Chairman of the Nominating and Corporate Governance Committee, member of the Compensation Committee and the Finance and Pension Investment Committee) and VICI Properties Inc. (Chair of the Audit Committee, member of the Nominating and Corporate Governance Committee), and the private company Boards of Directors of Mauser Packaging Solutions and SCP Retirement Services. She previously served on the Boards of Directors of Adore Me, Media General, Inc., Revlon, Inc., The Edelman Financial Group Inc., Vistage International, Inc., Knowledge Universe Education LLC, Edelman Financial Services, LLC and Service King Body and Paint LLC.

 

 

 

Qualifications:

Ms. Cantor possesses extensive financial skills and brings to the Board an important financial perspective. Ms. Cantor also provides valuable consumer product and marketing knowledge, as well as significant public company directorship experience, making her qualified for service as a director of the Company.

     

LOGO

DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT 13


 Proposal One: Election of Directors (continued)

LOGO

LOGO

 

 

Richard L. Federico

Independent Director

 

Director since: 2011

 

Age: 6869

 

Current Committees:

Compensation

Nominating and Corporate

  GovernanceAudit (Chair)

 

 

Richard L. Federico served as Non-Executive Chairman of P.F. Chang’s China Bistro, Inc. based in Scottsdale, AZ, from February 2016 until its acquisition in March 2019. Mr. Federico previously served as Executive Chairman of P.F. Chang’s from March 2015 to February 2016 and as Chairman of the Board, Chief Executive Officer or Co-Chief Executive Officer from September 1997 to March 2015. Mr. Federico joined P.F. Chang’s as President in 1996, when he also began his service on its Board of Directors. Mr. Federico started his career in the restaurant industry as a Manager at Steak & Ale, and later at Orville Beans and Bennigan’s restaurants. He went on to develop Grady’s Goodtimes, serving as Co-Founder/Partner and Vice President of Operations until Brinker International, Inc. acquired Grady’s in 1989. Upon joining Brinker International, Mr. Federico served as Senior Vice President and concept head for Macaroni Grill before being promoted to President of the Italian Concept division. As President, he directed operations and development for Macaroni Grill and Spageddies.

 

Mr. Federico has served on Domino’s Board of Directors since February 2011 and is a memberthe Chairperson of the Compensation Committee and the Nominating and Corporate GovernanceAudit Committee of the Board of Directors. Mr. Federico’s service on these two committees will end in April 2023 at which time he will become the Chairperson of the Audit Committee in accordance with the normal rotation of committee members prescribed by our Corporate Governance Principles.

 

In addition to serving on Domino’s Board of Directors, Mr. Federico currently serves on the Boards of Directors of RPT Realty and Tastemaker Acquisition Corp. He also currently serves on the Boards of Directors of Prime Steak Concepts,Black Rock Coffee, The Melt and Boqueria, all privately-held restaurant concepts. Mr. Federico previously served as Chairman of the Board of Directors of Jamba, Inc. and on the Boards of Directors of RPT Realty and Tastemaker Acquisition Corp. He is a Founding Director of Chances for Children.

 

 

Qualifications:

Mr. Federico brings to the Board experience in leading a successful publicly-traded restaurant concept, overall business and financial acumen and public company directorship experience, making him qualified for service as a director of the Company.

 

   

14    DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT


Proposal One: Election of Directors (continued)

LOGO

LOGOLOGO

 

James A. Goldman

Independent Director

 

Director since: 2010

 

Age: 6465

 

Current Committees:

Nominating and CorporateAudit

  Governance (Chair)

AuditInclusion & Diversity

 

 

James A. Goldman is currently a Senior Advisor atserves on three portfolio company Boards representing Eurazeo SE, a global investment firm listed on the Paris Stock Exchange, and serves on the Boards of Directors of several of its portfolio companies:including Q Mixers, a leading premium carbonated mixer brand, Waterloo Sparkling Water Corp., a carbonated beverage company, and Dewey’s Bakery, a premium baked goods company. Mr. Goldman served as President and Chief Executive Officer and as a member of the Board of Directors of Godiva Chocolatier, Inc. from 2004 to 2014. Mr. Goldman was President of the Food and Beverage Division at Campbell Soup Company from 2001 to 2004 and served in various executive positions at Nabisco, Inc. from 1992 to 2000. Prior to his work at Nabisco, Mr. Goldman was a senior consulting associate at McKinsey & Company, Inc.

 

Mr. Goldman has served on Domino’s Board of Directors since March 2010, serves as Chairpersonand is a member of the Nominating and Corporate Governance Committee and serves on the Audit Committee of the Board of Directors. Mr. Goldman’s service as the Chairperson of the Nominating and Corporate Governance Committee will end in April 2023 at which time he will become a member of the Inclusion & Diversity Committee in addition to his continuing service as a member of the Audit Committee, in accordance with the normal rotationBoard of committee members prescribed by our Corporate Governance Principles.Directors.

 

In addition to serving on Domino’s Board of Directors, Mr. Goldman serves on the Board of Directors of Abercrombie & Fitch Co., where he is a member of the Compensation Committee and Chair of the Nominating and Corporate Governance Committee. Mr. Goldman previously served on the Board of Directors of The Children’s Place, Inc. He also served on the Board of Trustees and Executive Committee of Save the Children in Fairfield, CT, the Executive Board of the International Tennis Hall of Fame, and the Board of Trustees at the YMCA Camps Becket and Chimney Corners in Becket, MA.

 

 

 

Qualifications:

Mr. Goldman brings to the Board experience in leading successful retail and branded consumer companies, including more than 30 years in the global food industry, overall business acumen and public company directorship experience, making him qualified for service as a director of the Company.

 

 

 

14 DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT


LOGO

 Proposal One: Election of Directors (continued)

LOGO

LOGO

 

Patricia E. Lopez

Independent Director

 

Director since: 2018

 

Age: 6162

 

Current Committees:

Inclusion & DiversityAudit

Nominating and Corporate


 Governance (Chair)

 

Patricia E. Lopez most recently served as Chief Executive Officer and as a member of the Board of Directors of High Ridge Brands Co. from July 2017 to March 2020. Ms. Lopez served as a Senior Vice President at Estée Lauder Companies Inc. from January 2015 to July 2016, a Senior Vice President at Avon Products, Inc. from December 2012 to November 2014 and previously held various positions at The Procter & Gamble Co. for 25 years, most recently serving as a Vice President and General Manager overseeing its Eastern Europe business.

 

Ms. Lopez has served on Domino’s Board of Directors since July 2018 and is a member of the Inclusion & Diversity Committee and the Nominating and Corporate Governance Committee of the Board of Directors. Ms. Lopez’s service on the Inclusion & Diversity Committee will end in April 2023 at which time she will become the Chairperson of the Nominating and Corporate Governance Committee and a member of the Audit Committee in accordance withof the normal rotationBoard of committee members prescribed by our Corporate Governance Principles.Directors.

In addition to serving on Domino’s Board of Directors, Ms. Lopez also serves on the Boards of Directors of Acreage Holdings, Aramark and Express, Inc. She previously served on the Board of Directors of Acreage Holdings.

 

 

 

Qualifications:

Ms. Lopez brings to the Board tremendous global business leadership, brand marketing and operations experience, as well as directorship experience and overall business acumen, making her qualified for service as a director of the Company.

 

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    15


Proposal One: Election of Directors (continued)

LOGO

LOGOLOGO

 

Russell J. Weiner

Chief Executive Officer

 

Director since: 2022

 

Age: 5455

 

Current Committees:

None

 

 

Russell J. Weiner has served as Domino’s Chief Executive Officer since May 2022. Prior to becoming CEO, Mr. Weiner served as Chief Operating Officer and President – Domino’s U.S. from July 2020 to April 2022, Chief Operating Officer and President of the Americas from July 2018 to July 2020, President, Domino’s USA from October 2014 to July 2018, and joined Domino’s as Executive Vice President and Chief Marketing Officer in September 2008. Prior to joining Domino’s, Mr. Weiner held various marketing positions at PepsiCo, Inc. from 1998 to 2008, most recently serving as Vice President of Marketing, Colas for Pepsi-Cola North America.

 

Mr. Weiner has served on Domino’s Board of Directors since April 2022, when he was elected in conjunction with his appointment as Chief Executive Officer effective May 2022. Mr. Weiner also serves on the Board of Directors of The Clorox Company.

 

 

 

Qualifications:

Mr. Weiner’s many years of executive leadership experience with the Company, including as its Chief Executive Officer, and in the restaurant and food and beverage industries generally, provides him with a deep knowledge of brand building, marketing, operations and consumer insights. In addition, his experience in digital innovation enables him to help the Company maintain its leadership position in digital technology within the restaurant industry, making him qualified for service as a director of the Company.

 

 

    
    

 

 

16    DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 15


 

Corporate Governance and Director Information

 

 LOGO

 

Corporate Governance Overview

Domino’s has a commitment to strong corporate governance practices. These practices provide a framework within which the Company’s Board and management can pursue the strategic objectives of Domino’s and seek to ensure its long-term growth for the benefit of shareholders. The Company’s corporate governance principles and practices are reviewed annually by the Nominating and Corporate Governance Committee and any changes are recommended to the Board for approval. The Company’s Corporate Governance Principles are posted on Domino’s corporate and investor website ir.dominos.com under the “Investors—Corporate Governance” section and are available free of charge upon request from the Company’s Corporate Secretary. The Nominating and Corporate Governance Committee Charter, the Compensation Committee Charter, the Audit Committee Charter and the Inclusion & Diversity Committee Charter are also posted on the Company’s corporate and investor website (“Investors—Corporate Governance” section on ir.dominos.com). All the referenced charters and the other documents referenced herein are available free of charge upon request from the Company’s Corporate Secretary.

The Company’s Corporate Governance Principles and the Nominating and Corporate Governance Committee Charter set forth the Company’s policies with respect to Board structure, membership (including nominee qualifications), performance, operations and management oversight. The Board meets at least quarterly in an independent director session led by Mr. Ballard, our Presiding Director, pursuant to the Corporate Governance Principles, and also conducts an executive session at each quarterly Board meeting. Prior to his transition from Chairman of the Board to the newly established position of Executive Chairman on May 1, 2022, the discussion leader for the independent director session and the executive session was generally Mr. Brandon. At the time of that transition, Mr. Ballard was appointed as Presiding Director, the lead independent director of the Board, and generally served as the discussion leader for the independent director session during the remainder of 2022.

Risk Oversight. The entire Board of Directors is engaged in risk management oversight. At the present time, the Board has not established a separate committee to facilitate its risk oversight responsibilities. The Board will continue to monitor and assess whether such a committee would be appropriate. In accordance with the NYSE listed company rules, the Audit Committee assists the Board of Directors in its oversight of Domino’s company-wide risk management and the process established to identify, measure, monitor and manage risks, in particular major financial, information security and cybersecurity and food safety risks, with input from the Company’s internal committee dedicated to assessing and managing enterprise risk.risk comprised of members of the Company’s Executive Leadership Team who report directly to our Chief Executive Officer in addition to other senior leaders within the Company (the “Enterprise Risk Committee”). The Board of Directors receives regular reports from management as well as from the Audit Committee and other standing committees regarding relevant risks and the actions taken by management to address those risks, including the specific risks identified above, and plays an active role in the oversight of the Company’s risk management framework.

Board’s Role in Environmental, Social and Governance Matters. The entire Board of Directors generally oversees the Company’s environmental, social and governance (“ESG”) initiatives and supports the implementation of the Company’s ESG priorities. With respect to Board oversight of ESG matters in general, rather than concentrating oversight of all ESG initiatives into any one Committee, the Board takes the approach that certain matters are most appropriately overseen by the Board as a whole and for other topics, the most appropriate committee should maintain oversight. For example, the Board’s Nominating and Corporate Governance Committee has oversight responsibility for the corporate governance aspects of ESG, the Inclusion & Diversity Committee has oversight responsibility for the Company’s initiatives regarding inclusion and diversity and the Audit Committee oversees the Company’s public disclosures, including those relating to its ESG initiatives. Given their breadth and importance, the Board currently believes that it is the appropriate body to oversee the development and implementation of the Company’s ESG efforts as a whole and the Board is regularly briefed on the Company’s ESG efforts and initiatives.

At the operational level, the Company’sa cross-functional Stewardship Steering Committee,team comprised of members of the Company’s Leadership Team who report directly to our Chief Executive Officer as well asand other senior leaders within the Company assess and manage stewardship risks and shape strategy for the organization, which is ultimately under the direction of the Company’s Executive Vice President and Chief Financial Officer, assesses and manages stewardship risks and shapes strategy for the organization. The Stewardship Steering Committee isOfficer. These executives are responsible for setting direction and driving accountability as we work to address material issues, work with key stakeholders and measure and report our progress.

 

 

16 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT    17


 

Corporate Governance and Director Information (continued)

 

 LOGO

 

In connection with its increased focus on Stewardship matters, the Company has published its 20222023 Stewardship Report, which is available at stewardship.dominos.com, and which we expect to build upon in the years to come. For additional information regarding the Company’s Stewardship efforts, please see “—Stewardship at Domino’s” below.

Cybersecurity Governance. As discussed above, the Company’s entire Board of Directors is engaged in risk management oversight, including the oversight of risks from cybersecurity threats. In accordance with the NYSE listed company rules, the Audit Committee assists the Board of Directors in its oversight of Domino’s information security and cybersecurity risks, with input from the Enterprise Risk Committee. At an operational level, the Company’s cybersecurity strategy is shaped by its Chief Information Security Officer who is ultimately responsible for implementing the Company’s cybersecurity policies, procedures and strategy under the oversight of the Enterprise Risk Committee. For additional information regarding the Company’s cybersecurity governance and cybersecurity risk management and strategy, please see Item 1C. Cybersecurity in the 2023 10-K.

Independence. The Company is required to have a majority of its Board be independent directors. The Company’s Corporate Governance Principles (posted on Domino’s corporate and investor website ir.dominos.com under the “Investors—Corporate Governance” section) contain the Company’s standards for director independence, which are consistent with the requirements of the NYSE and SEC. A director will be designated as independent if the Board affirmatively determines that he or she (i) has no material relationship with the Company or its subsidiaries, (ii) satisfies the other criteria specified by the NYSE listed company rules, (iii) has no business conflict with the Company or its subsidiaries and (iv) otherwise meets applicable independence criteria specified by law, regulation, exchange requirement or the Board. An independent director must also be free of any other relationship that, in the opinion of the Board, would interfere with the exercise of independent judgment as a director. The Board has affirmatively determined that the following directors who served in the 20222023 fiscal year were independent under that definition:

C. Andrew Ballard

Andrew B. Balson

Corie S. Barry

Diana F. Cantor

Richard L. Federico

James A. Goldman

Patricia E. Lopez

The Board based these determinations primarily on a review of the responses of directors to questions regarding employment and compensation history, affiliations, family and other relationships and discussions with directors. In connection with Mr. Brandon’s appointment as Executive Chairman on May 1, 2022 and his employment with the Company in such role, Mr. Brandon was no longer considered to be independent under applicable NYSE listing rules. At such time, Mr. Ballard was appointed as Presiding Director, the lead independent director of the Board.

Expectations. The Corporate Governance Principles further provide that the directors are invited and expected to attend the Company’s annual meetings of shareholders. All our directors attended the 20222023 annual meeting of shareholders.

The Company has adopted a Code of Professional Conduct for Senior Financial Officers that applies to all executive officers of the Company, including the Chief Executive Officer and Chief Financial Officer, as well as all of the Company’s other financial officers and other employees with senior financial roles. In addition, the Company has adopted a Code of Business Conduct and Ethics for Directors, Officers and Employees that applies to all directors, officers and employees. The Code of Professional Conduct for Senior Financial Officers and the Code of Business Conduct and Ethics are posted on the Company’s corporate and investor website (“Investors—Corporate Governance” section on ir.dominos.com). The Company intends to satisfy the disclosure requirement regarding any amendment to, or waiver of, a provision of the Code of Professional Conduct for the Chief Executive Officer, Chief Financial Officer, Corporate Controller or persons performing similar functions, by posting such information on its website at ir.dominos.com.

A total of fivesix meetings of the Board of Directors of the Company were held during 20222023 and the Board acted via unanimous written consent on three other occasions. Each director attended at least 75% of the aggregate of (i) the total number of meetings of the Board and (ii) the total number of meetings held by all committees of the Board on which that director served.

DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT 17


 Corporate Governance and Director Information (continued)

LOGO

Leadership Structure. The Company’s previous leadership structure, as established in March 2010, separated the Chairman and Chief Executive Officer roles into two positions. In May 2022, the Company’s leadership structure was updated to take into account Mr. Brandon’s appointment to the newly-established position of Executive Chairman of the Board in which role he is no longer treated as independent under applicable NYSE listing rules. Accordingly, at the time of Mr. Brandon’s appointment as Executive Chairman, the Board appointed Mr. Ballard as Presiding Director, the lead independent director of the Board. The Company’s current leadership structure has a separate Executive Chairman,

18    DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT


Corporate Governance and Director Information (continued)

LOGO

Presiding Director and Chief Executive Officer and was designed to maintain independence between Board oversight and the operating decisions of the Company. The Company has determined this leadership structure based on factors such as the experience of the applicable individuals, the current business environment of the Company, and other relevant criteria. After considering these factors, the Company determined that separating the positions of Presiding Director of the Board from the Executive Chairman and Chief Executive Officer positions is the appropriate leadership structure for the Company. The Chief Executive Officer is responsible for the strategic direction of the Company and the day-to-day leadership and performance of the Company. The Executive Chairman provides guidance to the Chief Executive Officer, sets the agenda for the Board meetings in consultation with the Chief Executive Officer and presides over meetings of the Board and shareholder meetings. The Presiding Director presides at all Board meetings where the Executive Chairman is not present and at meetings and sessions of the independent directors, as well as any additional duties as the Board may determine from time to time, and has significant authority in terms of leadership as well as in the ability to convene the Board to ensure that there is a free flow of information among the Company’s independent directors. The Company and the Board believe that this is appropriate under current circumstances, because it allows management to continue to make the operating decisions necessary to manage the business, with guidance from the Board, while retaining independence between the oversight function of our Board and operating decisions. The Company and the Board further believe this division of responsibilities provides an appropriate balance of operational focus, flexibility and oversight. The Board believes that Mr. Brandon’s role as Executive Chairman has provided continued leadership of the Board and has been a valuable resource to both Mr. Weiner and the Board and has facilitated a smooth transition of the CEO role.Board.

Committees. In accordance with the requirements of the NYSE, the Board has a Nominating and Corporate Governance Committee, a Compensation Committee and an Audit Committee, all of which are comprised solely of independent directors, as defined by Section 303A of the NYSE listed company rules and other applicable independence standards. The Board also has an Inclusion & Diversity Committee, which oversees the Company’s inclusion and diversity progress and efforts. Each committee of the Board has designated responsibilities as specified in their respective charters and regularly reports on their activities to the entire Board.

Nominating and Corporate Governance Committee

The members of the Nominating and Corporate Governance Committee are currently Messrs. Goldman (Chairperson) and Federico and Ms. Lopez. Effective in April 2023 in accordance with the normal rotation of committee members prescribed by our Corporate Governance Principles, the members of the Nominating and Corporate Governance Committee will be Mses. Lopez (Chairperson) and Cantor and Mr. Balson. The independence of each member of the Nominating and Corporate Governance Committee is determined annually by the full Board of Directors in accordance with Section 303A.04 of the NYSE listed company rules. The Board of Directors has determined that each current member of the Nominating and Corporate Governance Committee as well as each member who will begin their service in April 2023, is independent as required under the NYSE and SEC rules.

The Nominating and Corporate Governance Committee met two times during 2022.2023. The Nominating and Corporate Governance Committee Charter, as approved by the Board, reflects the Nominating and Corporate Governance Committee’s responsibilities, and the Nominating and Corporate Governance Committee reviews the charter at least once annually. The charter was last reviewed in October 20222023 and can be found on the Company’s corporate and investor website (“Investors—Corporate Governance” section on ir.dominos.com).

The Nominating and Corporate Governance Committee’s functions include assisting the Board in determining the desired qualifications of directors, identifying potential individuals meeting those qualifications, proposing to the Board a slate of nominees for election by the shareholders and reviewing candidates nominated by shareholders. In addition, further functions include reviewing the succession planning process for senior management of the Company, reviewing the Corporate Governance Principles, making recommendations to the Board with respect to other corporate governance principles applicable to the Company, recommending directors to serve on committees, overseeing the determinations of director independence, overseeing the annual evaluation of the Board (including periodic peer-to-peer assessments of individual directors) and its committees and management and reviewing Board succession plans.

 

 

18 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT    19


 

Corporate Governance and Director Information (continued)

 

 LOGO

 

periodic peer-to-peer assessments of individual directors) and its committees, reviewing the Company’s policies with respect to charitable and other contributions and reviewing management and reviewing Board succession plans.

Evaluation of Director Candidates. The Nominating and Corporate Governance Committee meets regularly to discuss, among other things, identification and evaluation of potential candidates for nomination as a director. The Nominating and Corporate Governance Committee may use a paid outside search firm or tools to identify possible directors, as has been the case when directors have been added to the Board in the past. In addition to the experience, qualifications and skills for directors listed under Proposal One, director candidates will be evaluated according to the qualifications as set forth in the Company’s Corporate Governance Principles, including the following desirable characteristics:

 

Highest degree of personal and professional ethics, integrity and values;

 

Possession of a range of talents, skills, diversity and expertise to provide sound and prudent guidance with respect to the operations and interests of the Company;

 

Expertise that is useful to the Company and complementary to the background and experience of other Board members;

 

Ability to devote the time necessary for the diligent performance of the duties and responsibilities of Board membership;

membership, including by way of adherence to the limitations on a Board member’s outside director board positions set forth in our Corporate Governance Principles;

 

Commitment to serve on the Board over a period of several years to develop knowledge about the Company and its operations;

 

Willingness to represent the long-term interests of the Company’s shareholders and objectively monitor and appraise management’s performance; and

 

Board diversity and other relevant factors as the Board may determine.

Shareholder Submission of Director Nominees. The Nominating and Corporate Governance Committee will consider nominees recommended by shareholders for the 20242025 annual meeting of shareholders, provided that the names of such nominees are submitted in writing, not later than January 26, 2024,25, 2025, to the Corporate Secretary of Domino’s Pizza, Inc. at 30 Frank Lloyd Wright Drive, Ann Arbor, Michigan 48105. Each such submission must include a statement of the qualifications of the nominee, a consent signed by the nominee evidencing a willingness to serve as a director, if elected, a commitment by the nominee to meet personally with the Nominating and Corporate Governance Committee members, as well as the other specific information required by our By-Laws and by Rule 14a-19(b)(2) and Rule 14a-19(b)(3) under the Exchange Act, where applicable.

Other than the submission requirements set forth above, there are no differences in the manner in which the Nominating and Corporate Governance Committee evaluates a nominee for director recommended by a shareholder.

Compensation Committee

The members of the Compensation Committee are currently Messrs. Balson (Chairperson), Ballard and Federico. Effective in April 2023 in accordance with the normal rotation of committee members prescribed by our Corporate Governance Principles, the members of the Compensation Committee will be Ms. Barry (Chairperson) and Messrs. Ballard and Balson. The independence of each member of the Compensation Committee is determined annually by the full Board of Directors in accordance with Section 303A.05 of the NYSE listed company rules. The Board of Directors has determined that each current member of the Compensation Committee as well as each member who will begin their service in April 2023, is independent as required under the NYSE and SEC rules.

The Compensation Committee met threefour times during 20222023 and acted via unanimous written consent on sixfive other occasions to conduct its required business in accordance with the Compensation Committee Charter. The Compensation Committee Charter authorizes the Compensation Committee to delegate any of its responsibilities to one or more subcommittees.as it deems appropriate, provided that such delegation is permitted under applicable laws, rules and regulations. The Compensation Committee Charter, as approved by the Board, reflects the Compensation Committee’s responsibilities, and the Compensation Committee reviews the charter at least once annually. The charter was last reviewed by the Committee in July 20222023 and approved by the Board in October 2023 and can be found on the Company’s corporate and investor website (“Investors—Corporate Governance” section on ir.dominos.com).

 

 

20    DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 19


 

Corporate Governance and Director Information (continued)

 

 LOGO

 

The Compensation Committee’s functions include examining the levels and methods of compensation employed by the Company with respect to the Chief Executive Officer and other executive officers, making recommendations with respect to other executive officer compensation, reviewing and approving the compensation package of the Chief Executive Officer, making recommendations to the Board with respect to director and Executive Chairman compensation, making recommendations to the Board with respect to incentive compensation plans and equity-based plans, making plan administration and compensation decisions under equity compensation plans approved by the Board, and implementing and administering one or more incentive bonus plans.

Audit Committee

The members of the Audit Committee are currently Mses. Cantor (Chairperson) and Barry and Mr. Goldman. Effective in April 2023 in accordance with the normal rotation of committee members prescribed by our Corporate Governance Principles, the members of the Audit Committee will be Messrs. Federico (Chairperson) and Goldman and Ms. Lopez. The independence of each member of the Audit Committee is determined annually by the full Board of Directors in accordance with Section 303A.07 of the NYSE listed company rules, the Exchange Act and the Sarbanes-Oxley Act of 2002, as amended. The Board of Directors determined that each current member of the Audit Committee as well as each member who will begin their service in April 2023, is independent as required under the NYSE and SEC rules. Additionally, the Board determined that each current member of the Audit Committee as well as each member who will begin their service in April 2023, is financially literate as required by Section 303A.07(a) of the NYSE listed company rules, and that Mses. Cantor and Barry, current Audit Committee members, and Mr. Federico who will begin his service on the Audit Committee in April 2023, areis an audit committee financial expertsexpert under Item 407(d)(5) of Regulation S-K.

The Audit Committee met four times during 2022.2023. The Audit Committee Charter, as approved by the Board, reflects the Audit Committee’s responsibilities, and the Audit Committee reviews the charter at least once annually. The charter was last reviewed in July 20222023 and can be found on the Company’s corporate and investor website (“Investors—Corporate Governance” section on ir.dominos.com). The Audit Committee’s functions include: (i) providing assistance to the Board in fulfilling its oversight responsibility relating to the Company’s financial statements and the financial reporting process, compliance with legal and regulatory requirements, the qualifications and independence of the Company’s independent registered public accounting firm, the Company’s system of internal controls, the internal audit function and the Company’s code of ethical conduct, (ii) assisting the Board in its oversight of Domino’s company-wide risk management and the process established to identify, measure, monitor and manage risks, (iii) retaining and, if appropriate, terminating the Company’s independent registered public accounting firm and (iii)(iv) approving audit and non-audit services to be performed by the independent registered public accounting firm.

The Audit Committee has adopted an Audit and Non-Audit Services Pre-Approval Policy under which audit and non-audit services to be rendered by the Company’s independent public registered accounting firm are pre-approved. All services provided to the Company by its independent public registered accounting firm for fiscal years 20222023 and 20212022 were pre-approved by the Audit Committee. This policy can be found on the Company’s corporate and investor website (“Investors—Corporate Governance” section on ir.dominos.com).

Audit and Other Service Fees

The following table sets forth the aggregate fees for professional services. All such services were pre-approved by the Audit Committee and rendered by PricewaterhouseCoopers LLP for each of the last two fiscal years (dollars in thousands):

 

  

2022

  

2021

  

2023

  

2022

Audit fees(1)

   

$

1,727

   

$

1,634

 

   

$

1,704

   

$

1,727 

Audit-related fees(2)

   

 

84

   

 

82

 

   

 

86

   

 

84 

All other fees(3)

   

 

7

   

 

3

 

   

 

82

   

 

7 

   

 

    

 

  

 

    

 

 

Total

   

$

1,818

   

$

1,719

 

   

$

1,872

   

$

1,818 

 

 

(1)

Includes services rendered for the audit of the Company’s annual financial statements, review of financial statements included in the Company’s quarterly reports on Form 10-Q, the audits of certain subsidiaries and other audit services normally provided by PricewaterhouseCoopers LLP in connection with statutory and regulatory filings or engagements. The amounts also include services related to Sarbanes-Oxley Act compliance the Company’s recapitalization transaction in 2021 and services related to audit procedures over changes in the Company’s enterprise systems.

(2)

Includes fees for services related to the audit of the Domino’s advertising fund subsidiary, other subsidiary reporting requirements and discussions concerning financial accounting and reporting matters.

(3)

Annual license fee forAll other fees primarily represent assurance related procedures associated with non-financial reporting topics, subscriptions to technical resources, and generic knowledge sharing, survey participation and training seminars related to accounting, reporting and disclosure software usage.general business matters.

 

 

20 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT    21


 

Corporate Governance and Director Information (continued)

 

 LOGO

 

Inclusion & Diversity Committee

The members of the Inclusion and& Diversity Committee are Mr. Ballard (Chairperson) and Mses. Barry and Lopez. Effective in April 2023 in accordance with the normal rotation of committee members prescribed by our Corporate Governance Principles, the members of the Inclusion and Diversity Committee will be Messrs. Ballard (Chairperson) and Goldman and Ms. Cantor. The Inclusion & Diversity Committee met two times during 20222023 to conduct its required business in accordance with the Inclusion & Diversity Committee Charter. The Inclusion & Diversity Committee Charter authorizes the Inclusion & Diversity Committee to delegate any of its responsibilities to one or more subcommittees. The Inclusion & Diversity Committee Charter, as approved by the Board, reflects the Inclusion & Diversity Committee’s responsibilities, and the Inclusion & Diversity Committee reviews the charter at least once annually. The charter was last reviewed in March 2023 and can be found on the Company’s corporate and investor website (“Investors—Corporate Governance” section on ir.dominos.com).

The Inclusion & Diversity Committee of the Board is instrumental in the Board’s fulfillment of its oversight responsibilities relating to, among other things, the Company’s inclusion and diversity strategies.

Purpose and Values

We are a purpose-inspired and performance-driven company with exceptional people committed to feeding the power of possible, one pizza at a time. At the heart of our brand is a commitment to a set of values that define our core beliefs on how we run our business, treat our people, support our franchisees and serve our customers.

Do the Right Thing: We act with integrity and make disciplined decisions, even when it’s difficult or unpopular. High ethical standards and uncommon honesty are at the heart of how we work together. We are committed to safely and responsibly serving our customers, and to giving back to the communities where we live and work.

Put People First: We create an inclusive culture, knowing our people are core to our success. We treat each other with dignity and respect, and we value the differences each team member brings. We strive to be a company where all team members can bring their full selves to work and know that they can belong, contribute and reach their potential.

Create Inspired Solutions: We are a company built on entrepreneurship and innovation. We get better every day by having the humility and the courage to embrace and lead change. Together, we unlock our collective potential to be bold and think big. We have a bias for action to solve customer needs in new and relevant ways.

Champion our Customers: We deliver on our promises, treating each order and interaction as an opportunity to deepen relationships by delivering great products, services and experiences. We hold ourselves accountable, and if we don’t deliver on a promise, we are committed to making it right.

Grow and Win Together: We are not playing a finite game. We are committed to building an enduring brand that outlives any of our individual contributions. We will grow together, deliver exceptional results together, celebrate wins together, have fun together, and leave the Domino’s brand in a better place for those that come after.

Human Capital Management

Having best-in-class talent across the globe is crucial to all aspects of Domino’s business, brand and long-term success. We are focused on attracting, developing and retaining high-performing, diverse teams and building an inclusive culture that inspires leadership, encourages innovative thinking and supports the development and advancement of all team members.

Compensation and Benefits. Exceptional people are the core of our business. We are committed to providing competitive pay and benefits to attract and retain great talent, whether in our U.S. Company-owned stores, in our supply chain centers or in our corporate offices. We enable this by benchmarking and analyzing pay and benefits both externally and internally. In recent years, we have made continued investments in frontline team member wage rates in our U.S. Company-owned stores and supply chain centers. We are committed to providing pay equity for all employees.

 

 

22    DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 21


 

Corporate Governance and Director Information (continued)

 

 LOGO

 

Domino’s offers a comprehensive benefits package to eligible team members, including several benefits designed to promote an inclusive workplace like paid parental leaves, adoption support, discounted childcare tuition, and health plans that are available to dependents, spouses and domestic partners and include fertility and gender transition support. We also offer eligible team members a 401(k) plan, education assistance, access to financial education, a back-up childcare network and access to legal assistance.

Beyond basic insurance programs, Domino’s offers other wellness services to help team members participating in our health plan manage and optimize their health. These no-cost programs include smoking cessation, diabetes and hypertension management and at-home physical therapy for such team members, in addition to emotional support through Domino’s team member assistance program for all part-time and full-time team members and their dependents. Additionally, we provide up to 40 hours per year of sick time for all part-time and full-time team members, with no waiting period for our part-time team members who begin accruing sick pay on their first day of hire, and access to an outside wellness platform featuring 4,000+ videos on topics like mindfulness, exercise, nutrition, sleep and financial well-being.

Talent Development and Recruiting. Domino’s team members are empowered to drive their own success through different resources, training and severalearly development programs, including our G.O.L.D. (Global Operations Leadership Development) Program, our Supply Chain Services Driver Development Program and our Tech Rotation Program.leadership pipeline programs. To continue to strengthen our ability to attract and retain talent, in recent years we have made continued investments in frontline team member wage rates in our U.S. Company-owned stores. On an annual basis, we also review scores for our team member engagement and culture surveys to identify strengths and opportunities for our brand.

The opportunity and potential at Domino’s is best represented in a key statistic: substantially all of our U.S. franchisees started as delivery drivers or in other in-store positions. With the vast majority of Domino’s U.S. franchisees developed from within our own system, the opportunity to become a small business owner is a profound and unique aspect of Domino’s culture and strength as a brand. Experienced store managers and other operators can apply for Franchise Management School (“FMS”). At FMS, these operators receive training for a successful transition from store management to store ownership.

Inclusion and Diversity Efforts. “Do the Right Thing” and “Put People First” are two of our core values at Domino’s. From those two values our Inclusion and Diversity mission was launched, and we have been relentless in our commitment to building and strengthening our culture every day. Our mission is to foster a more diverse, highly engaged workforce that sees our Company as the employer of choice and is representative of the communities we serve. We want our team members to feel comfortable bringing their unique experiences and diverse backgrounds to discussions where they can share, learn and listen together enabled by conscious inclusion practices and our leadership competencies.

Domino’s is focused on building an inclusive culture that welcomes and supports everyone and seeks to understand and listen to team members and our neighborhood community members. Our Inclusion and Diversity efforts are built with a strategic framework that encompasses three pillars:

Workforce—focused on the diversity of our workforce at all levels of the organization.

Workplace—focused on ensuring that our Company-owned stores, offices and supply chains are inclusive.

Marketplace—focused on ensuring our brand reaches and is relevant to all consumers.

As part of our workplace initiatives, we provide leadership and funding to support team members in participating in Employee Resource Groups (“ERGs”). We currently have ERGs representing the Black, Hispanic and LGBTQ+ communities, as well as women in the workforce and individuals with disabilities, with potentially more to come based on team member interest. We also make available to our team members several benefits designed to promote an inclusive workplace like paid parental leaves, adoption support, discounted childcare tuition, and health plans that are available to dependents, spouses and domestic partners and include fertility and gender transition support.

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    23


Corporate Governance and Director Information (continued)

LOGO

Board Oversight. The Board oversees and is regularly updated on the Company’s leadership development and talent management strategies designed to attract, develop and retain global business leaders who can drive financial and

22 DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT


 Corporate Governance and Director Information (continued)

LOGO

strategic growth objectives, enhance Domino’s culture as described below and build long-term shareholder value. The Board formally reviews and discusses management development and succession plans for the Chief Executive Officer and senior management of the Company, including individual senior management transitions as the need arises over the course of the year.

Beyond leadership development, our Board is focused on culture and human capital management priorities for promoting a safe, inclusive and respectful work environment, where employees across our entire workforce feel comfortable bringing their best selves to work, are inspired to act ethically and raise concerns and are enabled to implement new and innovative ideas in the best interests of the business.

As part of its human capital management efforts, the Board also reviews team member engagement and culture surveys and receives updates on management’s plans for addressing concerns or potential areas of improvement.

Shareholder Engagement

Shareholder engagement is a vital part of our governance profile and we maintain active, year-round engagement with our shareholders in pursuit of the continued delivery of sustainable, long-term value to them. We recognize the value of shareholder engagement and take a proactive approach to shareholder outreach. During 2022,2023, we proactively contacted institutional shareholders representing more than half of our outstanding shares as of the time of such outreach, to discuss the performance of the business and our strategic initiatives, in addition to ESG, executive compensation, stewardship and other issues, and to address any questions and concerns. We regularly review certain governance, compensation and other policies and practices in response to comments from our shareholders.

Stewardship at Domino’s

Our vision for stewardship is for Domino’s to deliver the power of possible every day for the communities we serve, our people and the planet. We have drafted our stewardship vision with notable goals and objectives to drive change in the years and decades to come and with pillars that ladder up to that vision and our underlying long-term goals. We have continued our efforts to better understand our environmental and social impacts. Our pillars include:

 

 

Environmental Footprint. This includes our focus on science-based climate targets and actions around reducingto reduce our greenhousegas emissions, reduce water impact and optimizing our energy usage, reducing our waterusage across the Domino’s system, increasing recycling of pizza boxesnationwide and minimizing waste in our system.

minimize waste.

 

 

Responsible Sourcing. Domino’s sourcing goals includeThis includes increasing transparency for our supply chain clarifying and publishingtransparency, maintaining our supplier standards and food safety requirements, enhancing our animal care standards, and amplifying our efforts to reduce deforestation and reducing our carbon footprint through innovation and partnership.

deforestation.

 

 

Empowering People. Our focus onThis includes creating a company culture that provides a safe, inclusive, and diverse workplace, with development pathways and supportive benefits, as well as our other ambitions which include programs around team member wellbeing and supporting franchisee development.

 

 

Community Impact. Domino’s has a long history of caring for the communities we serve. WeThis includes our plan to strengthen our commitment to local communities and national partners, while expanding support of new meaningful organizations.

These four pillars provide the framework for fulfilling our vision and set our brand on a course for enhanced stewardship as we evolve and grow.

We engaged outside experts to measure and quantify our environmental footprint and identify opportunities to improve. With the help of these experts, we have conducted a materiality assessment, connected with key stakeholders inside and outside of the companyCompany and developed a baseline report for our carbon, water and land use footprint in the U.S. We have set twoestablished significant commitments on greenhouse gas emissions, includingemissions: we set and submitted our Science Based Targets for validation in 2023 and we have established a commitment to set and reachachieve those Science Based Targets by 2032 and achieve net zero carbon emissions by 2050. We also continue to highlight important

24    DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT


Corporate Governance and Director Information (continued)

LOGO

stewardship topics with consumers, including our recent efforts to promote the ability to recycle pizza boxes throughout the U.S. In addition, weWe also launched a fleet of electric vehicles in 2022 as part of an initiative to solve a business need with a solution that is also good for the planet.

DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT 23


 Corporate Governance and Director Information (continued)

LOGO

Domino’s also has a long history of caring for the communities we serve. Our national philanthropic partner is St. Jude Children’s Research Hospital®, which is internationally recognized for its pioneering work in finding cures and saving children with cancer and other catastrophic diseases. Through a variety of internal and consumer-based activities, including a national consumer fundraising campaign called St. Jude Thanks and Giving®, the Domino’s system has contributed $109.2approximately $124.7 million to St. Jude since our partnership began in 2004, including raising $13.3approximately $15.5 million in 2022.2023. We havealso committed to a 10-year, $100 million campaign to raise funds to build Domino’s Village at St. Jude, a planned housing complex that will accommodateopened in 2023 and accommodates up to 140 patient families during long-term stays at the hospital.

We also support the Domino’s Pizza Partners Foundation (the “Partners Foundation”). Founded in 1986, the mission of the Partners Foundation is “Team Members Helping Team Members.” Primarily funded by team member and franchise contributions, the Partners Foundation is a separate, not-for-profit organization that has disbursed over $11.3$12.3 million over the past five years. The Partners Foundation is committed to meeting the needs of Domino’s team members facing crisis situations, such as fire, illness, natural disasters or other personal tragedies.

Additionally, in 2020, Domino’s announced a pledge of $3.0 million to support the Black community in the U.S., including $1.0 million to create the Company’s first Black Franchisee Opportunity Fund.

You can find more information about our initiatives and read our 20222023 Corporate Stewardship Report, which includes both Sustainability Accounting Standards Board (SASB) and Global Reporting Initiative (GRI) indexed tables, at stewardship.dominos.com. The information included in our Corporate Stewardship Report is not incorporated by reference herein and should not be considered a part of this document.

Prohibition Against Hedging Transactions

All of the Company’s employees and directors are prohibited from any hedging of Company securities, including by way of forward sales contracts, collars or otherwise, pursuant to our Insider Trading Policy.

 

 

24 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT    25


 

Audit Committee Report

 

 LOGO

 

The following Report of the Audit Committee does not constitute soliciting material and should not be deemed filed or incorporated by reference into any other Company filing under the Securities Act or the Exchange Act, except to the extent the Company specifically incorporates this Report.

The Audit Committee is governed by a written charter which was adopted by the Company’s Board of Directors and is reviewed annually by the Audit Committee. The Audit Committee is responsible for overseeing the quality and integrity of the Company’s accounting, auditing, financial reporting and internal control practices. The Audit Committee is responsible for, in addition to other activities, the appointment, retention and compensation of the Company’s independent registered public accounting firm. The Audit Committee has a policy with respect to the pre-approval of non-audit services.

Each member of the Audit Committee was determined to be independent as required under the NYSE listed company rules, including those rules applicable to audit committee members. The Board determined that twoone of its members during fiscal 2022, Ms. Cantor and Ms. Barry, were2023, Mr. Federico, was an audit committee financial expertsexpert under Item 407(d)(5) of Regulation S-K. The Audit Committee met four times during 2022.2023.

In performing its responsibilities, the Audit Committee, in addition to other activities: (i) reviewed and discussed the Company’s audited financial statements with management, (ii) discussed with PricewaterhouseCoopers LLP, the Company’s independent registered public accounting firm, the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board (“PCAOB”) and the SEC and (iii) received the letter from PricewaterhouseCoopers LLP required by the applicable requirements of the PCAOB regarding the independent accounting firm’s communications with the Audit Committee concerning independence and discussed with PricewaterhouseCoopers LLP the firm’s independence. Based on these reviews, discussions and activities, the Committee recommended to the Board of Directors that the audited financial statements be included in the Company’s Annual Report on Form 10-K for fiscal 20222023 for filing with the SEC.

The Audit Committee considered whether the provision of non-audit services by PricewaterhouseCoopers LLP was compatible with maintaining such firm’s independence. After reviewing the services provided by PricewaterhouseCoopers LLP, including all non-audit services, the Audit Committee, in accordance with its charter, authorized the reappointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm of the Company, with such reappointment to be ratified by the shareholders at the Annual Meeting.

Respectfully submitted,

Audit Committee

Diana F. Cantor,Richard L. Federico, Chairperson

Corie S. Barry

James A. Goldman

Patricia E. Lopez

 

 

26    DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 25


 

Proposal Two: Ratification of Independent Registered Public

 Accounting Firm

 

 LOGO

 

The Company’s Audit Committee has selected PricewaterhouseCoopers LLP as the independent registered public accounting firm of the Company for the current fiscal year. Management expects that representatives of PricewaterhouseCoopers LLP will be present at the Annual Meeting with the opportunity to make a statement if they desire to do so and will be available to respond to appropriate questions.

The affirmative vote of the holders of a majority of the votes cast at the meeting in person or by proxy is necessary to ratify the selection of the Company’s independent registered public accounting firm for the current year. Under applicable law, listed company rules and the Company’s By-Laws, abstentions are not counted as votes cast and will have no effect on the outcome of the vote. Unless otherwise indicated, the persons named in the Proxyproxy will vote all Proxiesproxies in favor of ratification. If the selection of PricewaterhouseCoopers LLP is not ratified, the Audit Committee will reconsider the selection of the independent registered public accounting firm.

Even if the selection of PricewaterhouseCoopers LLP is ratified by shareholders, the Audit Committee, in its discretion, could decide to terminate the engagement of PricewaterhouseCoopers LLP and to engage another firm if the Committee determines such action to be necessary or desirable. Conversely, if the selection of PricewaterhouseCoopers LLP is not ratified by shareholders, the Audit Committee, in its discretion, could still decide to continue the engagement with PricewaterhouseCoopers LLP for the 20232024 audit if the Company determines such action to be necessary or desirable.

 

 

Our Board of Directors and Audit Committee Unanimously Recommend a Vote FOR Ratification of the Selection of PricewaterhouseCoopers LLP as the Independent Registered Public Accounting Firm of the Company for the 20232024 Fiscal Year

 

 

 

 

 

26 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT    27


 

Stock Ownership Information

 

 LOGO

 

Security Ownership of Certain Beneficial Owners

The following table sets forth information (based upon filings with the SEC) with respect to the persons believed by the Company to beneficially own more than 5% of the outstanding common stock, par value $0.01 per share, of the Company as of December 31, 2022:2023:

 

  Common Stock, par value $0.01 per share  Common Stock, par value $0.01 per share
Name and Address of Beneficial Owner
Name and Address of Beneficial Owner
Name and Address of Beneficial Owner
Name and Address of Beneficial Owner
Name and Address of Beneficial Owner  

Amount and Nature of

Beneficial Ownership

  Percentage of Class  

Amount and Nature of

Beneficial Ownership

  Percentage of Class

The Vanguard Group(1)

   

 

3,896,223

   

 

11.0

%

   

 

3,875,715

   

 

11.16

%

100 Vanguard Blvd.

      

Malvern, Pennsylvania 19355

      

BlackRock, Inc.(2)

   

 

3,806,197

   

 

10.8

%

55 East 52nd Street

      

New York, New York 10055

      

BlackRock, Inc.(2)

BlackRock, Inc.(2)

BlackRock, Inc.(2)

BlackRock, Inc.(2)

   

 

2,892,693

   

 

8.33

%

50 Hudson Yards

New York, New York 10001

T. Rowe Price Investment Management, Inc.(3)

T. Rowe Price Investment Management, Inc.(3)

T. Rowe Price Investment Management, Inc.(3)

T. Rowe Price Investment Management, Inc.(3)

T. Rowe Price Investment Management, Inc.(3)

   2,457,946   7.08%

101 E. Pratt Street

Baltimore, MD 21201

 

 

(1)

Based on a Schedule 13G/A filed by the Reporting Person on February 9, 2023,13, 2024, The Vanguard Group is the beneficial owner of 3,896,2233,875,715 shares of common stock of the Company and has shared voting power with respect to 51,45546,748 shares, sole dispositive power with respect to 3,748,6313,725,352 shares and shared dispositive power with respect to 147,592150,363 shares of common stock of the Company. The Vanguard Group, Inc.’s clients, including investment companies registered under the Investment Company Act of 1940 and other managed accounts, have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the common stock of the Company. No one other person’s interest in the securities reported is more than five percent.

(2)

Based on a Schedule 13G/A filed by the Reporting Person on January 5, 2023,25, 2024, BlackRock, Inc. is the beneficial owner of 3,806,197and has sole dispositive power with respect to 2,892,693 shares of common stock of the Company and has sole dispositive power with respect to 3,806,196 shares and sole voting power with respect to 3,566,6662,662,497 shares of common stock of the Company. Various persons have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of the common stock of the Company. No one person’s interest in the common stock of the Company is more than five percent of the total outstanding common stock.

(3)

Based on a Schedule 13G filed by the Reporting Person on February 14, 2024, T. Rowe Price Investment Management, Inc. (Price Investment Management) is the beneficial owner of and has sole dispositive power with respect to 2,457,946 shares of common stock of the Company and has sole voting power with respect to 1,067,637 shares of common stock of the Company. Price Investment Management does not serve as custodian of the assets of any of its clients; accordingly, in each instance only the client or the client’s custodian or trustee bank has the right to receive dividends paid with respect to, and proceeds from the sale of, such securities. The ultimate power to direct the receipt of dividends paid with respect to, and the proceeds from the sale of, such securities, is vested in the individual and institutional clients which Price Investment Management serves as investment advisor. Any and all discretionary authority which has been delegated to Price Investment Management may be revoked in whole or in part at any time. Not more than 5% of the class of such securities is owned by any one client subject to the investment advice of Price Investment Management.

The foregoing information is based upon Schedule 13G reports or amendments filed with the SEC by the above beneficial owners in 2023,2024, with respect to their holdings of the common stock of Domino’s Pizza, Inc. as of December 31, 2022.2023.

 

 

28    DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 27


 

Stock Ownership Information (continued)

 

 LOGO

 

Security Ownership of Management

The following table sets forth, as of January 1,December 31, 2023, the end of the Company’s last fiscal year, information with respect to the Company’s common stock, par value $0.01 per share, owned beneficially by each director, by each nominee for election as a director of the Company, by the named executive officers listed in the Summary Compensation Table starting on page 5049 of this Proxy Statement and by all directors and executive officers as a group.

 

Name of Beneficial Owner  

Amount and

Nature of Beneficial

Ownership

   

Percentage of

Class

   

Amount and

Nature of Beneficial

Ownership

  

Percentage of

Class

Russell J. Weiner(1)

  

 

90,077

 

  

 

*

 

   

 

104,863

   

 

*

Sandeep Reddy

  

 

 

  

 

*

 

Joseph H. Jordan(2)

  

 

24,290

 

  

 

*

 

Kelly E. Garcia(3)

  

 

17,548

 

  

 

*

 

Arthur P. D’Elia(4)

  

 

4,350

 

  

 

*

 

Richard E. Allison, Jr.(5)

  

 

142,302

 

  

 

*

 

Sandeep Reddy(2)

   

 

3,641

   

 

*

Joseph H. Jordan(3)

   

 

28,124

   

 

*

Kelly E. Garcia(4)

   

 

19,708

   

 

*

Art D’Elia(5)

   

 

6,674

   

 

*

David A. Brandon

  

 

6,213

 

  

 

*

 

   

 

6,897

   

 

*

C. Andrew Ballard

  

 

2,813

 

  

 

*

 

   

 

1,781

   

 

*

Andrew B. Balson(6)

  

 

65,776

 

  

 

*

 

   

 

53,138

   

 

*

Corie S. Barry

  

 

1,763

 

  

 

*

 

   

 

1,763

   

 

*

Diana F. Cantor

  

 

8,403

 

  

 

*

 

   

 

8,403

   

 

*

Richard L. Federico

  

 

5,753

 

  

 

*

 

   

 

5,753

   

 

*

James A. Goldman

  

 

6,123

 

  

 

*

 

James A. Goldman(7)

   

 

6,123

   

 

*

Patricia E. Lopez

  

 

1,519

 

  

 

*

 

   

 

1,519

   

 

*

All current directors and executive officers as a group (17 persons)(7)

  

 

268,102

 

  

 

0.76

All current directors and executive officers as a group (17 persons)(8)

   

 

282,832

   

 

0.81

%

 

 

*

Less than 1%.

(1)

Includes 70,06280,754 shares of common stock issuable upon exercise of options that were exercisable on January 1,December 31, 2023 or within 60 days thereafter.

(2)

Includes 23,4401,229 shares of common stock issuable upon exercise of options that were exercisable on January 1,December 31, 2023 or within 60 days thereafter.

(3)

Includes 13,87826,689 shares of common stock issuable upon exercise of options that were exercisable on January 1,December 31, 2023 or within 60 days thereafter.

(4)

Includes 2,31915,647 shares of common stock issuable upon exercise of options that were exercisable on January 1,December 31, 2023 or within 60 days thereafter.

(5)

For Mr. Allison, amounts are as of July 15, 2022, the date of his retirement from the Company. Includes 106,8234,296 shares of common stock issuable upon exercise of options that were exercisable on July 15, 2022December 31, 2023 or within 60 days thereafter. Also includes 500 shares of common stock owned by Mr. Allison’s children.

(6)

Includes 25,310 shares of common stock held in the Andrew B. Balson 2004 Irrevocable Family Trust, and 6,870 shares of common stock held in the Andrew B. Balson 2011 Irrevocable Family Trust.

(7)

Includes 6,123 shares of common stock held in the James Alan Goldman Revocable Trust.

(8)

Includes an aggregate of 242,330156,709 shares of common stock issuable upon exercise of outstanding options that were exercisable on January 1,December 31, 2023 or within 60 days thereafter by our current directors and executive officers as a group.

The information with respect to beneficial ownership is based upon information furnished by each director, nominee or executive officer, or information contained in filings made with the SEC.

Compensation Committee Interlocks and Insider Participation

The members of the Compensation Committee are currentlyMs. Barry (Chairperson) and Messrs. Balson (Chairperson), Ballard and Federico.Balson. During fiscal 2022,2023, no member of the Compensation Committee was an officer or employee of ours, a former officer of ours or of our subsidiaries or had any relationships requiring disclosure by us under Item 407(e) of Regulation S-K. None of our executive officers served on the board of directors or compensation committee of any other entity that has or has had one or more executive officers who served as a member of our Board or Compensation Committee during fiscal 2022.2023.

 

 

28 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT    29


 

Executive Compensation

 

 LOGO

 

Compensation Committee Report

The following Report of the Compensation Committee does not constitute soliciting material and should not be deemed filed or incorporated by reference into any other Company filing under the Securities Act or the Exchange Act, except to the extent the Company specifically incorporates this Report.

We have reviewed and discussed the Compensation Discussion and Analysis with management. Based on this review and discussion, we recommended to the Board that the Compensation Discussion and Analysis be included in this Proxy Statement and incorporated by reference in the Company’s fiscal 20222023 Annual Report on Form 10-K for filing with the SEC.

Respectfully submitted,

Compensation Committee

Andrew B. Balson,Corie S. Barry, Chairperson

C. Andrew Ballard

Richard L. FedericoAndrew B. Balson

 

 

30    DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 29


 

Compensation Discussion and Analysis

 

 LOGO

 

Executive Summary

Domino’s objective is to be the worldwide leader in the pizza industry and one of the top restaurant brands in the world. To accomplish this objective, the Compensation Committee believes that Domino’s must recruit and retain well-qualified and high-performing executives to help attain the Company’s business goals and objectives, and we have established short- and long-term compensation programs that we believe support these objectives. Having a highly engaged executive team with the ability to successfully execute our business strategy in dynamic environments has been critical to our strong performance over many years. This Executive Summary highlights the key aspects of our fiscal 20222023 performance and compensation program.

Fiscal 20222023 Business Performance. Fiscal 20222023 was a challenging year in many respects,of strong financial and operating performance for the Company, as discussed more fully in “Proxy Summary—20222023 Business Highlights” above, butand was also a year in which we sharpenedcontinued our focus on opportunities for continuous improvement in our business and doubled down onunveiled an exciting new five-year strategic vision rooted in our commitment to future growth and success.success through our “Hungry for MORE” strategy, which is our plan to deliver MORE sales, MORE stores and MORE profits. Amid an ever-changing and challenginguncertain global operating environment, which included significant inflationary pressures in our commodity, labor and fuel costs as well as an unexpected negative impact of changes in foreign currency exchange rates, the Company continued to stay focused on its stakeholders – its customers, team members, franchisees, communities and shareholders. While the Company’s financialshareholders – and delivered a return to strong performance ultimately fell short of its plan and pre-established annual performance target as described below, the Company maintained strong levels of profitability across the business in fiscal 2022, especially when compared against2023 and an increase in the Company’s financial performance in fiscal 2019 prior to the onset of the COVID-19 pandemic.stock price during this same period.

The following table illustrates the Company’s growth in fiscal 20222023 in terms of revenues,global retail sales, Segment Income (as defined and disclosed in Note 11 to the Company’s consolidated financial statements for the fiscal year ended January 1,December 31, 2023 included in our 20222023 10-K), income from operations, store count, and stock price at fiscal year-end relative to fiscal 2022, fiscal 2021, fiscal 2020 and fiscal 2019.

 

(Dollars in millions, except stock price)  2022(1)   2021(1)   2020(1)   2019(1)   

Percent
Increase

2019 to 2022(1)

  2023(1) 2022(1) 2021(1) 2020(1) 2019(1) 

Percent
Increase

2019 to 2023(1)

Revenues

  

$

4,537.2

 

  

$

4,357.4

 

  

$

4,117.4

 

  

$

3,618.8

 

  

 

25.4

Global Retail Sales

 $18,275.8 $17,539.9 $17,779.0 $15,700.8(2)  $14,320.5 27.6%

Segment Income

  

$

857.5

 

  

$

883.7

 

  

$

817.8

 

  

$

712.1

 

  

 

20.4

 $939.1  $857.5  $883.7  $817.8  $712.1  31.9%

Income from Operations

  

$

767.9

 

  

$

780.4

 

  

$

725.6

 

  

$

629.4

 

  

 

22.0

 $819.5  $767.9  $780.4  $725.6  $629.4  30.2%

Store Count (Fiscal Year End)

 20,591 19,880 18,848 17,644 17,020 21.0%

Stock Price (Fiscal Year End)

  

$

346.40

 

  

$

564.33

 

  

$

383.46

 

  

$

292.31

 

  

 

39.7

%(2) 

 $412.23  $346.40  $564.33  $383.46  $292.31  41.0%

 

(1)

The 2020 fiscal year included 53 weeks and the 2023, 2022, 2021 and 2019 fiscal years each included 52 weeks.

(2)

Percent increase is calculatedGlobal retail sales benefited in fiscal 2020 from the inclusion of an extra, or 53rd, week. This figure represents global retail sales excluding the global retail sales attributable to the Company’s closing stock price on53rd week in 2020. Including the first trading day of the 2019 fiscal year ($247.99)53rd week, global retail sales were $16,105.7 million in order to capture the four-year change.2020.

TheWe remain the largest pizza company in the world and the Company’s sales performance continues to show comparable strength within QSR pizza and the overall QSR industry, with a four-year U.S. retail sales cumulative average growth rate of 6.4%. This growth compares favorably to the cumulative average market share growth rates of the QSR pizza and overall QSR segments, which were up 1.7% and 4.3%, respectively, over that same store sales year-over-year average increase of 4.4% and a four-year international same store sales year-over-year average increase of 3.6%. Additionally,period according to data provided by Circana for the year ending December 2023. Overall, the Company’s global retail sales, excluding foreign currency impact, and the impact of the 53rd week in fiscal 2020, increased an average of 8.5%7.9% year-over-year over the last four years and the Company’s common stock price increased 39.7%41.0% from the beginningend of fiscal 2019 through the end of fiscal 2022.

While the Company’s fiscal 2022 financial performance was below expectations and our stock price was pressured, our2023. Our performance for the four-year period ending with fiscal 20222023 demonstrated strong growth in our market share and financial results and corresponding strong growth in the Company’s stock price over this period.

Named Executive Officers. The Compensation Discussion and Analysis describes the Company’s executive compensation program, philosophy and objectives as they relate to our 20222023 named executive officers listed below:

 

 

Russell J. Weiner—Chief Executive Officer (“CEO”)

 

 

Sandeep Reddy—Executive Vice President and Chief Financial Officer (“CFO”)

 

 

Joseph H. Jordan—President, U.S. & Global Services (“President”)

 

 

Kelly E. Garcia—Executive Vice President, Chief Technology Officer (“CTO”)

 

Arthur P. D’Elia—Executive Vice President, International (“EVP, International”)

 

30 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT    31


 

Compensation Discussion and Analysis (continued)

 

 LOGO

 

Arthur P. D’Elia—Executive Vice President, International (“EVP, International”)

Richard E. Allison, Jr.—Former Chief Executive Officer (“Former CEO”)

Leadership Succession and Appointments. On May 1, 2022, Mr. Weiner, who had served as the Company’s Chief Operating Officer and President—Domino’s U.S., was appointed as the Company’s Chief Executive Officer in connection with Mr. Allison’s retirement from the Company. Mr. Allison remained as an employee of the Company through July 15, 2022 to assist in the transition of his duties. On May 1, 2022, Mr. Jordan, who had served as the Company’s Executive Vice President, International, was promoted to the position of President, U.S. & Global Services in connection with Mr. Weiner’s appointment as the Company’s Chief Executive Officer. On April 1, 2022, Mr. Reddy was hired as the Company’s Executive Vice President and Chief Financial Officer. On May 1, 2022, Mr. D’Elia, who had served as the Company’s Executive Vice President and Chief Marketing Officer, was appointed to the position of Executive Vice President, International.

20222023 Compensation Program Highlights. Key events with respect to our 20222023 executive compensation program are as follows:

 

2023 corporate performance under the Domino’s Pizza Senior Executive Annual Incentive Plan (“AIP”) (based on adjusted total segment income as detailed below) was achieved at 100.63% of target, resulting in a cash payout of AIP awards at 106.3% of target. The increase in adjusted total segment income for fiscal 2023 followed a challenging year in fiscal 2022 in which the Company failed to achieve its annual performance target under the AIP for the first time in over a decade. The Company’s return to above-target performance in fiscal 2023 corresponded with a significant return to growth and an increase in the Company’s stock price during this same period, and the Company’s named executive officers contributed greatly to these achievements.

Continuing the transition in our long-term incentive program implemented in 2021, we maintained a long-term incentive compensation program comprised of performance-based restricted stock units (“PSUs”), time-vesting restricted stock units (“RSUs”) and stock options.

In 2023, the relative target mix of PSUs granted to the named executive officers under the Company’s 2004 Equity Incentive Plan, as amended (the “EIP”) was increased to 50% of target grant date value for our CEO to demonstrate additional emphasis on the long-term performance incentive portion of the EIP.

 

2022 corporate performance under the Domino’s Pizza Senior Executive Annual Incentive Plan (“AIP”) (based on adjusted total segment income as detailed below) was achieved at 94.98% of target, resulting in a cash payout of AIP awards at 49.8% of target. Amounts earned under the AIP for the 2022 performance period were below target, reflecting results that fell short of the Company’s plan for 2022.

Demonstrating the emphasis that the Compensation Committee places on the performance-based components of total direct compensation, in fiscal 20222023 approximately 87%91% of the target total direct compensation for our CEO, following his promotion, and 77%an average of approximately 85% of all other named executive officers’ target total direct compensation, following any promotions, as applicable, was variable and tied to Company financial and/or stock price performance.

PSUs granted in 2021 for the January 4, 2021 – December 31, 2023 performance period paid out at 98.5% of target, driven by strong growth in the Company’s global retail sales, excluding foreign currency impact, for the three-year performance period and demonstrating significant growth in the Domino’s brand globally over the performance period.

Summary of Chief Executive Officer and Other Named Executive Officers’ Compensation. Consistent with our compensation philosophy, a significant portion of each named executive officer’s compensation is at-risk and tied to Company financial and/or stock price performance, as summarized in the charts below. See “ —Compensation Philosophy and Process” for more details on how the factors considered by the Compensation Committee impacted compensation decisions and see “2022“2023 Summary Compensation Table” for the compensation paid or awarded to the named executive officers for fiscal year 2022.2023.

 

LOGOLOGO  LOGOLOGO

 

 

*

BasedRepresents each named executive officer’s target pay mix. Amounts are based on the grant date fair value of target long-term incentive compensation and assumingassume target performance for short-term cash incentives and PSUs. “2022 Average of All Other NEOs Target Pay Mix” does not reflect compensation paid to our Former CEO and excludes one-time awards made at the time of our CFO’s hire. Totals may not sum to 100% due to rounding.

 

 

32    DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 31


 

Compensation Discussion and Analysis (continued)

 

 LOGO

 

Changes to Be Effective in 2023. We anticipate that our 2023 executive compensation program, which will be fully disclosed in next year’s Compensation Discussion and Analysis, will include several changes that we believe will enhance our performance-based compensation program and further tie executive compensation to the creation of long-term shareholder value. In 2022, the target mix for equity awards granted to Mr. Weiner, our current CEO, under the Company’s 2004 Equity Incentive Plan, as amended (the “EIP”), was comprised of approximately 33% PSUs (at target), 33% RSUs and 33% stock options, and for our other currently employed named executive officers (excluding one-time awards granted to our CFO made at the time of his hire), the target mix was comprised of approximately 25% PSUs (at target), 50% RSUs and 25% stock options. In 2023, it is expected that the CEO equity mix will be comprised of approximately 50% PSUs (at target), 25% RSUs and 25% stock options. For our other named executive officers, it is expected that the mix will be comprised of approximately 33% PSUs (at target), 33% RSUs and 33% stock options.

In 2021 and 2022, our named executive officers were granted PSUs that were based on the achievement of adjusted total segment income and global retail sales, excluding foreign currency impact goals on a cumulative basis, over a three-year performance period as described further under “—Components of Total Direct Compensation—Long-Term Incentive Compensation—Long-Term Performance-Based Restricted Stock Units (PSUs)” below. Awards granted in 2023 will contain performance goals that will be measured on a constant growth rate basis, with three individual annual targets for each performance goal established at the onset of the three-year performance period expressed as a growth rate over the previous year’s actual result. Such shift recognizes the inherent difficulty in setting three-year cumulative goals, especially in the current operating and macroeconomic environment, and is also designed to ensure that participants remain sufficiently motivated over the full three-year performance period and are not disproportionately impacted, either positively or negatively, by an outlier year within the performance period. Finally, the Committee will (i) adjust the relative total shareholder return (“TSR”) modifier applicable to the PSUs to increase the weight of such modifier from 15% to 25% to better align with market practice and place more emphasis on cumulative performance over the three-year performance period (with such TSR modifier continuing to measure cumulative performance over the three-year performance period following which period all earned awards, if any, will be subject to applicable adjustment based on TSR results in order to strengthen the link with long-term shareholder interests) and (ii) change the comparison index from the S&P 500 Index to the S&P Composite 1500 Restaurants Sub-Index to better assess the Company’s performance as compared to its peers within the restaurant sector. The Compensation Committee believes these changes to our long-term incentive compensation program will further improve the alignment between executive compensation and the long-term interests of shareholders.

Compensation Program Overview

The Compensation Committee is responsible for determining the compensation of our executive officers and administering the cash incentive and equity-based plans in which our executive officers, directors and other eligible employees participate. The goal of the Company’s executive compensation program is to attract, motivate and retain talented and high-performing individuals to help us attain our business goals and objectives. We are committed to achieving long-term, sustainable growth and increasing shareholder value. Our compensation program for our named executive officers is designed to be aligned with and to enhance these commitments, as well as to encourageenhance retention and to encourage and reward strong financial performance on both an annual and long-term basis. We use a combination of short-term and long-term incentives to ensure a strong connection between Domino’s operating performance and actual compensation delivered.

The Compensation Committee uses total direct compensation as the primary measure of compensation for our named executive officers. The principal elements of total direct compensation for our CEO and our other named executive officers are: (i) annual base salary, (ii) annual performance cash incentives under the AIP and (iii) long-term incentive compensation consisting of PSUs, RSUs and stock options granted under the EIP.

20222023 Principal Elements of Total Direct Compensation

 

Base Salary

 

   +  

Annual

Performance Incentive

(cash award under the AIP)

 

   +  

 

Long-term Incentive Compensation

(performance-based restricted
stock units, time-vesting restricted stock units and stock options under the EIP)

 

 

   =  

TOTAL DIRECT COMPENSATION

 

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    33


Compensation Discussion and Analysis (continued)

LOGO

The Compensation Committee places a significant focus on variable and performance-based compensation, which is provided in the form of annual performance cash incentives under the AIP and equity-based awards under the EIP. Our focus on performance-based compensation rewards strong Company financial and operating performance and aligns the interests of our named executive officers with those of our shareholders.

Demonstrating the emphasis that the Compensation Committee places on the performance-based components of total direct compensation, in fiscal 20222023 approximately 87%91% of the target total direct compensation for our CEO following his promotion was variable and tied to Company financial and/or stock price performance, approximately 80% of the target total direct compensation for our President following his promotion was variable and tied to Company financial and/or stock price performance and approximately 78%87% of the target total direct compensation for our CFO, excluding one-time awards made at the time of his hire,President was variable and tied to Company financial and/or stock price performance. For fiscal 2022,2023, approximately 75%84% of the target total direct compensation for each of our CFO, CTO and EVP, International was variable and tied to Company financial and/or stock price performance.

Other aspects of the Company’s executive compensation program are intended to further align the interests of our named executive officers with those of our shareholders and to promote good corporate governance. These include:

 

Annual review of our compensation plans, policies, and significant compensation practices;

Meaningful stock ownership guidelines;

 

 

No tax gross-ups on change in control-related payments;

 

A cap on maximum annual performance incentives;

 

No supplemental pension or death benefits for our named executive officers;

 

Annual evaluation of level of risk in incentive compensation design;

 

A clawbackMaintaining a recoupment policy covering performance-based cashcompliant with SEC and equity compensation;

NYSE rules;

 

Anti-pledging and anti-hedging provisions contained in our Insider Trading Policy; and

 

No dividends are paid on unvested RSUs and PSUs; dividend equivalents in the form of cash are only payable to the extent the RSUs and PSUs ultimately vest.

32 DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT


 Compensation Discussion and Analysis (continued)

LOGO

Compensation Philosophy and Process

Compensation Committee Philosophy. The Compensation Committee determines the target total direct compensation levels, the components thereof and relative weightings of each component for each of our named executive officers. The Compensation Committee generally targets the median of the applicable benchmark (i.e., peer group and broader retail/wholesale and general industry surveys, as described below) when setting target total direct compensation levels for our CEO and other named executive officers, but also takes into account other factors as described below. Executive-specific considerations, strategic Company considerations, actual performance related to the applicable AIP and long-term incentive compensation metrics and stock price performance can result in our named executive officers’ actual total direct compensation being above or below the median in any given year. Our use of peer group benchmarking and other data in making compensation decisions is described below.

Compensation Setting Process. The Compensation Committee follows a thoughtful and deliberate approach in overseeing executive compensation and making compensation decisions throughout the year. In order to evaluate and maintain the effectiveness of the Company’s current executive compensation program, the Compensation Committee annually reviews the reasonableness of executive compensation levels using an independent compensation consultant, as well as publicpublicly available information about compensation levels at comparable companies within the Company’s peer group (described below) and evaluates such levels in light of individual performance as well as the Company’s growth and profitability. In 2022,2023, the Compensation Committee usedcontinued to use Meridian Compensation Partners, LLC (“Meridian”) as its independent compensation consultant.

In making compensation decisions, the Compensation Committee reviews the nature and scope of each named executive officer’s responsibilities, as well as the named executive officer’s effectiveness in supporting the Company’s short- and long-term goals. The Compensation Committee attempts to set annual base salary, annual performance incentives, long-term incentive compensation and other compensation and benefits at levels that it believes will attract, motivate and retain superior executive talent in a highly competitive environment.

34    DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT


Compensation Discussion and Analysis (continued)

LOGO

In December 2021,2022, the Compensation Committee conducted a review of the target total direct compensation of our named executive officers for 20222023 using data provided by Meridian, as described below. This review was ultimately reassessed and updated in February 2022 in connection with the leadership changes discussed above in “ —Executive Summary—Leadership Succession and Appointments.”

As noted previously,above, the Compensation Committee places more emphasis on the performance-based components of total direct compensation for our CEO CFO and President than for our other named executive officers. Mr. Weiner’s target pay mix for fiscal 2022 following his promotion2023 was allocated as follows: 12.5%9% annual base salary, 25%18% annual performance incentive and 62.5%73% long-term incentive compensation; Mr. Reddy’s target pay mix (excluding one-time awards made at the time of his hire) for fiscal 2022 was allocated as follows: 22% annual base salary, 22% annual performance incentive and 56% long-term incentive compensation;compensation and Mr. Jordan’s target pay mix for fiscal 2022 following his promotion2023 was allocated as follows: 20%13% annual base salary, 30%19% annual performance incentive and 50%68% long-term incentive compensation.

 

LOGOLOGO  LOGOLOGOLOGO

 

 

*

BasedRepresents each named executive officer’s target pay mix. Amounts are based on the grant date fair value of target long-term incentive compensation and assumingassume target performance for annual performanceshort-term cash incentives and PSUs. Totals for our CFO exclude one-time awards made at the time of our CFO’s hire. Totals may not sum to 100% due to rounding.

DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT 33


 Compensation Discussion and Analysis (continued)

LOGO

For fiscal 2022,2023, the Compensation Committee allocated the target total direct compensation mix for each of our other currently employed named executive officers, our CFO, CTO and EVP, International, to be as follows: 25%16% annual base salary, 25%16% annual performance incentive and 50%68% long-term incentive compensation.

 

LOGO

LOGO

 

 

 

*

BasedRepresents each named executive officer’s target pay mix. Amounts are based on the grant date fair value of target long-term incentive compensation and assumingassume target performance for annual performanceshort-term cash incentives and PSUs. Totals may not sum to 100% due to rounding.

For fiscal 2022,2023, the amount of annual short-term cash performance incentives reported in the Summary Compensation Table as earned by our named executive officers was lessis greater than the amount awarded at target, as shown above, due to the achievement by the Company of applicablethe AIP performance measuresmeasure at below-targetabove-target levels in light of the Company’s 2022strong 2023 financial performance, which, as further described above, fell shortbelow under “—Components of the Company’s plan.

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    35


Compensation Discussion and Analysis (continued)

LOGO

Total Direct Compensation—Annual Performance Incentives.”

Consideration of Say-On-Pay Vote and Shareholder Feedback. In evaluating the Company’s executive compensation program, the Compensation Committee also considered the results of the advisory vote on the say-on-pay proposal presented at the Company’s 20222023 annual meeting of shareholders. At the 20222023 annual meeting, more than 92% of shares voted were in support of the compensation provided to our named executive officers. While shareholder support of our executive compensation program, as reflected in the results of the annual advisory say-on-pay shareholder vote, has been very strong in recent years, the Compensation Committee recently conducted an extensive reviewcontinually assesses the structure of our long-term incentive compensation program with guidance from Meridian. A key focus ofThe Committee believes that the review was an evaluation of ways to enhance the alignment of our compensation program with long-term and sustainable shareholder value creation, while continuing to offer compensation programs that attract and retain a strong leadership team necessary to attain the Company’s business goals and objectives and also reflect market “best practices.” Following that review, in 2021 we transitioned from our existing long-term incentive compensation program, which was comprised of performance shares and stock options, to acurrent program comprised of PSUs, RSUs and stock options. The Compensation Committee believes these changes to our long-term incentive compensation program haveoptions has further improved the alignment between executive compensation and the interests of shareholders and believes that the use of PSUs, RSUs PSUs and stock options that vest over a multi-year period focuses executives on the Company’s long-term interests without leading to imprudent risk-taking.risk-taking and also reflects market “best practices.”

 

 

LOGOLOGO

In addition to considering the results of the 20222023 say-on-pay vote as described above, the Company regularly engages in discussions with certain major shareholders to solicit their feedback regarding our executive compensation program, including as part of our regular shareholder outreach efforts described further in “Corporate Governance and Director Information—Shareholder Engagement.” The Company has made changes to our executive compensation program in prior years based upon feedback from this shareholder outreach and plans to continue these shareholder engagement efforts in future years. Discussions with these shareholders in 20222023 did not indicate any significant issues with our current executive compensation program, as updated to include the changes to the long-term incentive component of this program as described above.program.

34 DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT


 Compensation Discussion and Analysis (continued)

LOGO

Role of the Compensation Consultant. The Compensation Committee has the authority under its charter to engage the services of outside consultants, advisors and others to assist the Compensation Committee and also to discontinue such services in its sole discretion. In accordance with this authority, the Compensation Committee engaged Meridian as an independent compensation consultant beginning in fiscal 2019 to advise on matters related to executive and director compensation. In addition to attending the threeregular Compensation Committee meetings held in 2022,2023, in December 20212022 Meridian provided its analysis of competitive executive pay practices (the “Meridian Analysis”) that the Compensation Committee initially used in evaluating and determining our named executive officers’ target total direct compensation, and the components and relative weightings thereof, for fiscal 2022. The Meridian Analysis was ultimately reassessed and updated in February 2022 in connection with the leadership changes discussed above in “ —Executive Summary—Leadership Succession and Appointments.”2023. Meridian was available to advise the Compensation Committee with respect to various executive and director-related compensation matters throughout the year.

The Compensation Committee assessed the independence of Meridian pursuant to Item 407(e)(3)(iv) of Regulation S-K and concluded that no conflict of interest existed with Meridian during its engagement that would prevent Meridian from independently advising the Compensation Committee. The Compensation Committee has continued to retain and use Meridian in fiscal 2023.

36    DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT


Compensation Discussion and Analysis (continued)

LOGO

2024.

Benchmarking and Peer Group. The Compensation Committee evaluates executive compensation by measuring the target total direct compensation of our named executive officers against benchmarks consisting of the Company’s peer group described below and of other comparable companies (through the use of benchmark data). It conducts an annual review of executive compensation by analyzing peer group pay data and applicable benchmark data, including the Meridian Analysis (as previously described), which include relevant retail/wholesale and general industry compensation market data. The Compensation Committee generally uses a composite of this peer group and market survey and other data to determine market compensation levels, which it then considers when establishing target levels of total direct compensation for the named executive officers and the components and relative weightings of such compensation. When making compensation decisions, the Compensation Committee is informed by the experiences of its members and also takes into account individual compensation recommendations from our CEO, with respect to the other named executive officers, and the Executive Chairman of the Board and the Chairperson of the Compensation Committee, with respect to our CEO, and,along with, among other things, the executive’s individual performance, of the executive, scope of job responsibilities, leadership and years of experience, all as further described below. The Compensation Committee generally sets target total direct compensation for our executives to be competitive with the Company’s peer group and other market data, taking into account the Company’s scale and level of performance.

For 2022,2023, the Compensation Committee considered the industry survey data in the Meridian Analysis, along with Company and targeted theindividual-specific factors including Mr. Weiner’s limited tenure as CEO, when setting his annual base salary and total direct compensation for Mr. Weiner in connection with his appointment as the Company’s Chief Executive Officertargets at a level below the relevant market median, as described in further detail under “Compensation for Chief Executive Officer” below. The Compensation Committee generally targets the annual base salary and total direct compensation for the other named executive officers, on average, to be within a competitive range around the market median for the upcoming year, again taking into account both the Company and individual-specific factors described above.

The Compensation Committee reviews the composition of its peer group annually in July for use in executive compensation decisions for the following year with input from Meridian. The peer group below, which remained unchanged from the prior year, was used for benchmarking with regard to compensation for 2022.2023.

 

Peer Group

Bloomin’ Brands, Inc.

  

Papa John’s International, Inc.

Chipotle Mexican Grill, Inc.

  

Restaurant Brands International Inc.

Darden Restaurants, Inc.

  

Royal Caribbean International

Expedia Group, Inc.

  

Texas Roadhouse, Inc.

Hilton Worldwide Holdings Inc.

  

Wayfair Inc.

Hyatt Hotels Corporation

  

The Wendy’s Company

InterContinental Hotels Group

  

Wyndham Hotels & Resorts, Inc.

Norwegian Cruise Line Holdings Ltd.

  

Yum! Brands, Inc.

DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT 35


 Compensation Discussion and Analysis (continued)

LOGO

The following criteria were considered in determining the members of the Company’s 20222023 peer group: publicly-traded retail or hospitality industry companies of comparable scale and scope and relative size, taking into account both reported and system-wide revenue, market capitalization and level of international operations, along with complexity of business (including franchise model) and a similar recruiting pool for executives.

In determining the 2022 peer group, the Compensation Committee removed each of Dunkin Brands Group, Inc. and GrubHub Inc. due to their respective acquisitions following which neither company remained a standalone publicly-traded company.

Role of Executive Officers in Establishing Compensation. The Company’s executive officers have a limited role in the executive compensation setting process. Our CEO, the Company’s ChiefExecutive Vice President, Human Resources Officer and the Chairperson of the Compensation Committee annually review the performance of each named executive officer (other than our CEO) and the Company’s other senior leadership to formulate compensation recommendations for the Compensation Committee. In addition, the Executive Chairman of the Board and the Chairperson of the Compensation Committee review the

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    37


Compensation Discussion and Analysis (continued)

LOGO

performance of our CEO to make recommendations to the Compensation Committee regarding our CEO’s compensation. Our CEO abstains from participating in all discussions regarding the CEO’s compensation. The scope of these reviews is to evaluate performance for a given year and make compensation recommendations for that year and the subsequent year, including with respect to base salary adjustments and annual and long-term incentive awards under the AIP and EIP, respectively. The Chairperson of the Compensation Committee typically engages in discussions with the independent compensation consultant prior to presenting compensation recommendations to the full Compensation Committee for approval, which now occurs in February of each year. The Compensation Committee may exercise its discretion to modify any recommended base salary adjustments or annual performance incentive or long-term incentive compensation awards to executives. The Compensation Committee ultimately makes all compensation decisions for our named executive officers, which, for all named executive officers other than the CEO, are then ratified by our Board of Directors.

Use of Tally Sheets. In 2022,2023, the Compensation Committee continued its practice of annually reviewing comprehensive tally sheets for each of our named executive officers. These tally sheets are prepared by management and quantify the elements of each named executive officer’s total direct compensation. The tally sheets contain annual cash compensation (base salary and annual performance incentive), other compensation, stock option exercises, equity award vesting events and annual equity award grants under the EIP, and also include the Accounting Standards Codification 718, Compensation—Stock Compensation (“ASC 718”) fair market values for the equity award grants, potential severance payments, and equity award holdings, with the total in-the-money value of such equity awards at the end of the preceding fiscal year. The Compensation Committee uses the tally sheets to get a full picture of the compensation accumulated by each named executive officer to date, including accumulated equity value and potential severance.

Equity Award Processes. We anticipate future annualAnnual equity awards will beare granted to our named executive officers in March of each year to more closely align with the timing of allthe annual total direct compensation decisions made by the Compensation Committee and to have awards granted more closely in time with the beginning of the three-year performance period underlyingapplicable to the PSUs described above.below. On occasion, in connection with new hires, promotions or certain corporate events, equity awards have been granted at other times throughout the year, including on a regular quarterly basis. The Compensation Committee does not have any plans, practices or policies of timing these equity award grants in coordination with the release of material non-public information and the Company does not have any plans, practices or policies of timing the release of material non-public information with the timing of equity awards. The exercise price of stock options is set at the closing price of the Company’s common stock on the NYSE on the date of the grant.

Components of Total Direct Compensation

Annual Base Salary. The Compensation Committee annually reviews and approves the annual base salaries of our named executive officers and any adjustments to their salaries. The Compensation Committee believes that a competitive base salary provides the foundation for the total compensation package required to attract, retain and motivate executives. In making decisions about any adjustments to annual base salaries, the Compensation Committee considers various factors such as:

 

Industry compensation survey and peer group compensation data provided and summarized by its independent compensation consultant;

The executive’s employment agreement with the Company;

The executive’s individual performance, scope of job responsibilities, leadership and years of relevant experience; and

The performance of the Company.

 

 

 

3836DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT


 

Compensation Discussion and Analysis (continued)

 

 LOGO

 

The executive’s employment agreement with the Company;

The executive’s individual performance, scope of job responsibilities, leadership and years of relevant experience; and

The performance of the Company.

The 20222023 annual base salaries for our named executive officers were reviewed and approved by the Compensation Committee and took into account Mr. Weiner’s promotion to Chief Executive Officer, Mr. Jordan’s promotion to President, U.S. & Global Services and Mr. D’Elia’s promotion to Executive Vice President, International, as well as Mr. Reddy’s hiring. Those 2022 base salaries, including any applicable year-over-year change, were as follows:

 

Executive    

2021 Ending

Base Salary

     

2022

Base Salary

     % Change 

Russell J. Weiner(1)

    $775,000     $875,000      12.9

Sandeep Reddy(2)

          $675,000       

Joseph H. Jordan(3)

    $490,000     $600,000      22.4

Kelly E. Garcia(4)

    $425,000     $500,000      17.6

Arthur P. D’Elia(4)

    $445,000     $500,000      12.4

Richard E. Allison, Jr.

    $904,000     $904,000       

(1)

Effective May 1, 2022 in connection with Mr. Weiner’s promotion to Chief Executive Officer.

(2)

Effective April 1, 2022 in connection with the commencement of Mr. Reddy’s employment with the Company.

(3)

Effective May 1, 2022 in connection with Mr. Jordan’s promotion to President, U.S. & Global Services.

(4)

Effective March 21, 2022. For Mr. D’Elia, such increase was in connection with his anticipated promotion to Executive Vice President, International effective May 1, 2022 and for Mr. Garcia, such increase was made to better align his base salary with market given his scope of responsibility (see “Benchmarking and Peer Group” above).

Executive    

2022

Base Salary

    

2023

Base Salary

    % Change

Russell J. Weiner

     $875,000     $875,000      

Sandeep Reddy

     $675,000     $685,000      1.5%

Joseph H. Jordan

     $600,000     $630,000      5.0%

Kelly E. Garcia

     $500,000     $525,000      5.0%

Arthur P. D’Elia

     $500,000     $525,000      5.0%

Annual Performance Incentives. The following section describes the annual performance incentive award for fiscal 20222023 for each of our named executive officers under the AIP. The 20222023 annual performance incentive targets for our named executive officers were as follows:

 

Executive  

20222023 Annual Performance

Incentive Target

(% of annual base salary)(1)

Russell J. Weiner

 

 

200

%(2)

Sandeep Reddy

 

 

100

%

Joseph H. Jordan

  

 

150

%(3)

Kelly E. Garcia

  

 

100

%

Arthur P. D’Elia

  

 

100

%

Richard E. Allison, Jr.

200

(1)

Reflects the named executive officer’s final 2022 annual performance incentive target. As described below, each named executive officer’s 2022 target annual performance incentive is prorated for applicable changes throughout the year when determining the actual amount of the annual performance incentive payout to the executive.

(2)

Mr. Weiner’s annual performance incentive target increased from 150% of base salary to 200% of base salary on May 1, 2022 in connection with his promotion.

(3)

Mr. Jordan’s annual performance incentive target increased from 100% of base salary to 150% of base salary on May 1, 2022 in connection with his promotion.

The Compensation Committee establishes the performance measures and targets and approves annual performance incentive payouts for the named executive officers based on the extent to which the pre-established performance targets associated with such annual incentives have been achieved. The Compensation Committee approved annual performance incentive awards under the AIP to each of the named executive officers for fiscal 20222023 as further described below.

The AIP provides the Compensation Committee with flexibility in selecting the plan participants and establishing the performance measures, performance periods and performance targets, including minimum and maximum annual payment thresholds, for annual awards made under it. All bonus-eligible team members of the Company participate in the AIP or another Company annual bonus program that contains the same financial performance metrics as the AIP. For fiscal 2022,2023, greater than 90%85% of the applicable performance target (the “performance threshold”) was required to be achieved in order for AIP (and other annual bonus program) participants to be eligible to receive an annual performance incentive payout; the maximum annual payout under the AIP was the lesser of (i) 250% of an individual’s annual performance incentive target and (ii) $5,000,000 per participant, the maximum annual payment amount under the AIP. In December 2021,The specific performance targets under the AIP established by the Compensation Committee selectedare based on the participantsbusiness plans of the Company and take into account a variety of factors, including certain strategic plans, programs, commodity pricing and discounts (including long-term supply contracts), product pricing and discounts, volume and sales predictions, corporate store marketing plans and expenses, U.S. and international store count projections, product initiatives, technological initiatives, macroeconomic conditions, general operational needs of the Company and other significant factors related to the Company’s business.

In December 2022 and consistent with its historical approach, the Compensation Committee established the annual adjusted total segment income performance measure and target incentive amounts under the AIP (and other annual bonus programs) for the 20222023 fiscal year in advance of the end of the Company’s then-current fiscal year. Mr. Reddy’s target incentive amount underIn January 2023, shortly following the AIP forbeginning of fiscal 2023, the Compensation Committee reviewed the Company’s finalized fiscal 2022 results, the trajectory of

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT3937

 


 

Compensation Discussion and Analysis (continued)

 

 LOGO

 

projected sales trends for 2023 based on the 2022 fiscal year wasCompany’s early 2023 results and its assessment of the then-current broader macroeconomic environment as well as the uncertainty of the Company’s then-current operating environment and determined byto (i) update the annual performance target from $930.0 million in adjusted total segment income to $905.0 million and (ii) lower the performance threshold from 90% to 85% of the annual performance target. The Compensation Committee further determined that there would be no above-target payout under the AIP (and other annual bonus programs) unless and until the Company achieved the $930.0 million annual performance target set in December 2022. In making these changes, the Compensation Committee was focused on ensuring that incentive awards under the AIP (and other annual bonus programs) continued to achieve the objective of motivating performance by our team members, including our executives, while also reflecting the business environment in connection with his appointmentwhich the Company was operating, as informed by actual performance in fiscal 2022. The fiscal 2023 performance target, as updated shortly following the beginning of fiscal 2023, remained set at a level 5.5% above the Company’s Executive Vice Presidentactual fiscal 2022 performance and Chief Financial Officer, effective asthe annual performance target at which level an award in excess of April 1, 2022, after reviewinga named executive officer’s annual performance incentive target could be earned reflected an 8.5% increase from actual results in 2022. Thereafter, in February 2023, the peer group and benchmark data described above.Compensation Committee approved the target incentive amounts for each named executive officer at levels unchanged from the prior year.

For annual performance incentives granted with respect to fiscal 2022,2023, the performance measure selected by the Compensation Committee, as applied to all of the named executive officers, was Segment Income as defined by the Company under Accounting Standards Codification 280, Segment Reporting (“ASC 280”), with certain adjustments (referred to as “adjusted total segment income”), measured over the full 20222023 fiscal year. Such adjustments include (i) impacts from severances, reductions in workforce, criminal acts, foreign currency fluctuations, legal matters, dispositions or acquisitions of Company-owned stores or other facilities, discontinuation of lines of business, changes to the accounting classification of leases, health insurance changes, changes in governmental regulations, certain labor activities and natural disasters, to the extent the net amounts differ from budgeted amounts by more than a specified threshold and (ii) the net incremental impact of the recognition of U.S. Company-owned store advertising expenses as compared to contributions to the Domino’s National Advertising Fund Inc. The Compensation Committee believes that the use of adjusted total segment income is appropriate because it is a reliable barometer for the overall success of the Company and it is a primary measure used by management to internally evaluate operating performance, to determine future business objectives and targets and for long-range planning for the Company. The annual performance measure is alignedintended to directionally align with and utilizes the same adjusted total segment income constant growth rate target asin the initial year in the three-year performance period for the PSUs granted in fiscal 2022,2023 as described below, though, as a result of the January 2023 actions described above, the annual adjusted total segment income constant growth rate target for fiscal 2023 for purposes of the PSUs is slightly higher than the 2023 annual performance measure. The Compensation Committee believes this is appropriate given that the PSUs are intended to serve as a long-term incentive vehicle to be earned over a three-year performance period. Further, actual achievement under the AIP and the PSUs may differ as a result of applicable adjustments being made over a one-year versus three-year period as well as the Company’s actual performance over thisthe longer period.three-year performance period being measured against constant growth rate targets as compared to discrete annual goals as described below.

For fiscal 2022,2023, as noted above, a named executive officer was not entitled to an annual performance incentive payout under the AIP unless Company performance exceeded 90%85% of the $905.0 million performance target (the “performance threshold”).target. If performance exceeded the performance threshold, the executive officer would receive 0.666% of their annual performance incentive target for every incremental 0.1% in excess of the performance threshold achieved by the Company until the adjusted total segment income level reached the $905.0 million performance target, at which point the executive officer would receive 100% of their annual performance incentive target. The executive officer would continue to receive 100% of their annual performance incentive target until the Company achieved over $930.0 million in adjusted total segment income. Thereafter, if performance exceeded the $930.0 million level, the executive officer would receive 1% of their annual performance incentive target for every incremental 0.1% in excess of the performance threshold achieved by the Company up to the maximum annual payment amount described above.

For illustrative purposes, assume a named executive officer had an annual base salary of $500,000 and was eligible for an annual performance incentive target of 100% of their annual base salary. Further assume thatConsidering the Company had anstructure of the 2023 annual performance target of $10,000,000. Theincentive design, the Compensation Committee determined the following:

 

If the annual performance result was $10,100,000,$939.3 million, or 101.0% achievement of the $930.0 million annual performance target at which level an award in excess of a named executive officer’s annual performance incentive

38 DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT


 Compensation Discussion and Analysis (continued)

LOGO

target could be earned, the Company would pay the named executive officer 110% of their annual performance incentive target, or $550,000. In other words, for 1% outperformance versus the $930.0 million target, an additional 10% of target would be awarded.

If the annual performance result was $923.1 million, or 102.0% achievement of the $905.0 million annual performance target but below the $930.0 million annual performance target at which level an award in excess of a named executive officer’s annual performance incentive target could be earned, the Company would pay the named executive officer 110%100% of their annual performance incentive target, or $550,000. In other words, for 1% outperformance versus$500,000 (100% of the annual performance incentive target an additional 10% of target would be awarded.

is awarded in the event the Company achieved between $905.0 million and $930.0 million in adjusted total segment income).

 

Conversely, assume the annual performance result was $9,500,000,$859.75 million, or 95% achievement of the $905.0 million annual performance target. In this situation, the Company would pay the named executive officer 50% (1%66.6% (0.666% for every 0.1% over the performance threshold) of their annual performance incentive target, or $250,000.

$333,500.

 

Finally, assume the annual performance result was $9,000,000,$769.25 million, or 90%85% achievement of the $905.0 million annual performance target. Given the performance threshold, the Company would pay the named executive officer 0% of their annual performance incentive target, or $0.

40    DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT


Compensation Discussion and Analysis (continued)

LOGO

For the named executive officers, the annual performance target for fiscal 2022 was $942.0 million in adjusted total segment income. This annual performance target was set to be aggressive, yet achievable, in order to sufficiently motivate executive performance. The Compensation Committee has raised the annual performance target significantly from the previous year’s actual results in each of the last ten fiscal years, including the last fourfive fiscal years as shown below, and, as such, thebelow. The Compensation Committee believes that the annual performance targets serve to motivate our named executive officers to attain these goals. For fiscal 2022, the annual performance target reflected a 9.5% increase from the 2021 annual performance target and a 5.5% increase from actual resultsincreases in 2021. The significant increases inannual performance targets from fiscal year to fiscal year require superiorstrong performance from the Company in a highly competitive market to achieve the annual performance target.target and therefore serve to motivate our named executive officers to achieve these performance goals.

 

Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year  

Annual Performance Target

Percentage Increase

From Prior Year

Performance Target

 

Annual Performance Target

Percentage Increase

From Prior Year

Actual Results

 

Annual Performance

Incentive Payout

   

Annual Performance Target

Percentage Change

From Prior Year

Actual Results(2)

 

Annual Performance Target

Percentage Change

From Prior Year

Performance Target

 

Annual Performance

Incentive Payout

2019(1)

  

 

8.6

 

 

7.2

 

 

127.9

   

 

7.9

%

 

 

8.6

%

 

 

127.9

%

2020(1)

  

 

12.2

 

 

9.2

 

 

152.9

   

 

9.5

%

 

 

12.2

%

 

 

152.9

%

2021(1)

  

 

10.3

 

 

4.7

%(2) 

 

 

138.5

   

 

5.2

%(3)

 

 

10.3

%

 

 

138.5

%

2022(1)

  

 

9.5

 

 

5.5

 

 

49.8

   

 

6.6

%

 

 

9.5

%

 

 

49.8

%

2023(1)(4)

   

 

5.5

%

 

 

-3.9

%

 

 

106.3

%

 

 

(1)

The 2020 fiscal year included 53 weeks and the 2019, 2021, 2022 and 20222023 fiscal years each included 52 weeks.

(2)

Prior year actual results reflect Segment Income reported by the Company in its consolidated financial statements for each of the respective fiscal years.

(3)

When excluding the impact of the 53rd week in 2020, the 2021 annual performance target reflected a 7.6%an 8.1% increase from 2020 actual results.

(4)

Annual performance target in 2023 reflects the $905.0 million annual performance target. The $930.0 million annual performance target at which level an award in excess of a named executive officer’s annual performance incentive target could be earned reflects an 8.5% increase from the prior year’s actual results and a 1.3% decrease from the prior year’s performance target.

As described above, the Company’s achievement of 94.98%100.63% of adjusted total segment income as compared to the original $930.0 million annual performance target for fiscal 2022, which was established in December 2021 following a year of2023 reflects the Company’s strong performance for the Company in 2021, reflects a year of challenging financial performance during fiscal 20222023 in the face ofan uncertain global operating headwinds, includingenvironment and a year in which we sharpened our focus on the continued challenges posed by the macroeconomic effects of the ongoing COVID-19 pandemic as well as inflationary pressures resulting from the overall macroeconomic environmentmany opportunities we have for continuous improvement in the U.S.our business and unveiled an exciting new strategic vision rooted in our commitment to future growth and success through our “Hungry for MORE” strategy. The declineincrease in adjusted total segment income for fiscal 2023 followed a challenging year in fiscal 2022 followedin which the Company failed to achieve its annual performance target for the first time in over a decade. The Company’s achievement ofreturn to above-target performance in each of fiscal 2019, 2020 and 2021, as shown in the table above, which2023 corresponded with the continueda significant return to growth of the business and an increase in the Company’s stock price during this same period. While the Company’s stock price was pressured in 2022 and its financial performance ultimately fell short of its plan, theThe Company maintained strong levels of profitability across the business in fiscal 2022,2023, especially when compared against the Company’s financial performance in fiscal 2019and scale prior to the onset of the COVID-19 pandemic.

Thepandemic, and the Company’s sales performance continues to show comparable strength within QSR pizza and the overall QSR industry with a four-year U.S. same store sales year-over-year average increase of 4.4% and a four-year international same store sales year-over-year average increase of 3.6%. Additionally, the Company’s global retail sales, excluding foreign currency impact and the impact of the 53rd week in fiscal 2020, increased an average of 8.5% year-over-year over the last four years and the Company’s common stock price increased 39.7% from the beginning of fiscal 2019 through the end of fiscal 2022.

These business results have demonstrated strength within a very competitive industry and resulted in above-target performance under the AIP during fiscal 2019, fiscal 2020 and fiscal 2021, although fiscal 2022 reflected a year of challenges as discussed in “—Executive Summary” above.

Because the annual performance targets set by the Compensation Committee were based on the Company’s performance as a whole, the likelihood of each named executive officer achieving their annual performance incentive

DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT 39


 Compensation Discussion and Analysis (continued)

LOGO

targets was the same. The Compensation Committee believes this focus on the Company’s performance as a whole encourages engagement, teamwork and collaboration across the Company resulting in stronger financial and operational performance.

The specific performance targets under the AIP established by the Compensation Committee are based on the business plans of the Company and take into account a variety of factors including certain strategic plans, programs, commodity pricing and discounts (including long-term supply contracts), product pricing and discounts, volume and sales predictions, corporate store marketing plans and expenses, U.S. and international store count projections, product initiatives, technological initiatives, macroeconomic conditions, general operational needs of the Company and other significant factors related to the Company’s business.

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    41


Compensation Discussion and Analysis (continued)

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Pursuant to the terms of the AIP (as described above), based on adjusted total segment income performance of 94.98%100.63% of the original annual performance incentive target, 49.8%106.3% of the target incentive payout was earned by our named executive officers for fiscal 2022.2023.

 

   2022 Target Annual
Performance Incentive
   Plan
Achievement
  2022 Actual Payout 
Executive      % of Salary(1)          Dollar Value(2)                 %            %       Dollar Value     

Russell J. Weiner

  

 

200

 

$

1,608,173

 

  

 

94.98

 

 

49.8

  

$

800,870

 

Sandeep Reddy(3)

  

 

100

 

$

675,000

 

  

 

94.98

 

 

49.8

  

$

336,150

 

Joseph H. Jordan

  

 

150

 

$

802,747

 

  

 

94.98

 

 

49.8

  

$

399,768

 

Kelly E. Garcia

  

 

100

 

$

500,000

 

  

 

94.98

 

 

49.8

  

$

249,000

 

Arthur P. D’Elia

  

 

100

 

$

500,000

 

  

 

94.98

 

 

49.8

  

$

249,000

 

Richard E. Allison, Jr.

  

 

200

 

$

960,962

 

  

 

94.98

 

 

49.8

  

$

478,559

 

(1)

Represents each named executive officer’s final 2022 target annual performance incentive; certain executives’ target annual performance incentives were modified during fiscal 2022 as described under “—Annual Performance Incentives” and the amount of the incentive earned is based on their target annual incentive pre- and post-modification (based on the period such incentive targets were in effect during the fiscal year).

(2)

Represents each named executive officer’s prorated 2022 target annual performance incentive multiplied by such named executive officer’s final 2022 salary. For Mr. Allison, such dollar value is equal to the portion of the annual performance incentive that would have otherwise been payable to him for fiscal year 2022 under the AIP prorated for the date of his retirement from the Company (July 15, 2022).

(3)

In accordance with Mr. Reddy’s employment agreement with the Company effective as of April 1, 2022, Mr. Reddy’s annual performance incentive was not prorated in 2022 for his April 1, 2022 commencement of employment.

   2023 Target Annual
Performance Incentive
  Plan
Achievement
 2023 Actual Payout
Executive   % of Salary   Dollar Value      %    %   Dollar Value 

Russell J. Weiner

   

 

200

%

  

$

1,750,000

   

 

100.63

%

  

 

106.3

%

   

$

1,860,250

Sandeep Reddy

   

 

100

%

  

$

685,000

   

 

100.63

%

  

 

106.3

%

   

$

728,155

Joseph H. Jordan

   

 

150

%

  

$

945,000

   

 

100.63

%

  

 

106.3

%

   

$

1,004,535

Kelly E. Garcia

   

 

100

%

  

$

525,000

   

 

100.63

%

  

 

106.3

%

   

$

558,075

Arthur P. D’Elia

   

 

100

%

  

$

525,000

   

 

100.63

%

  

 

106.3

%

   

$

558,075

Long-term Incentive Compensation. The Compensation Committee believes that an equity component of executive compensation and participation in the Company’s long-term incentive compensation program accomplishes the objective of linking each named executive officer’s opportunity for financial gain to Company performance and serves to align our named executive officers’ interests with the interests of our shareholders, thereby creating value for those shareholders as reflected by the market price of the Company’s common stock. To that end, the Company maintains the EIP, a long-term equity-based incentive compensation program. The Compensation Committee believes that the use of stock options,PSUs, RSUs and PSUsstock options that vest over a multi-year period focuses executives on the Company’s long-term interests without leading to imprudent risk-taking and demonstrates our continued commitment to paying for performance. In addition, we believe time-vesting RSUsand performance-based PSUs and time-vesting and performance-based PSUsRSUs represent an efficient method of delivering long-term stock compensation with a value that is directly tied to Company operational andand/or stock price performance.

Grants of awards to our CEO and other named executive officers are approved by the Compensation Committee and are ratified by our Board of Directors. In March 2022,2023, our Compensation Committee approved, and our Board of Directors ratified, the following awards under the EIP to our named executive officers excluding our CFO after considering the Company’s internal equity grant guidelines and the Meridian Analysis and after reviewing each named executive officer’s total direct compensation as described in “—Compensation Setting Process” above. In April 2022, in connection with his hire, our Compensation Committee approved, and our BoardThe grant date fair value of Directors ratified, the followingannual long-term incentive awards granted under the EIP to our CFO after considering the compensation levels paid to similarly situatednamed executive officers atin 2023 increased as compared to the Company,grant date fair value of awards made in 2022 and our historical award levels. In determining the mediansize of the composite market data reviewed bythese awards, the Compensation Committee to provide a perspective on external practices, his experience, input from the Compensation Committee’s independent compensation consultantconsidered past grant levels and the competitiveness of the proposed grants with market levels, based on the Meridian Analysis, taking into account each executive’s unvested equity amounts as compared to recommended market levels and the fact that the executives were maturing into their leadership roles. The Compensation Committee intended that the grants would create further alignment with shareholder interests, serve as an additional mechanism for incentivizing a return to the Company’s strong historical performance in a challenging macroeconomic environment, and create additional retentive value of equityfor these highly-skilled executives in the highly-competitive labor market. The awards that he forfeited upon leaving his prior employer.also reflected in part the increased weighting to PSUs.

 

  

Time-Vesting Restricted
Stock Units (RSUs)

   

Performance-Based Restricted
Stock Units (PSUs)(1)

   

Stock Options

 
  Time-Vesting Restricted
Stock Units (RSUs)
  Performance-Based Restricted
Stock Units (PSUs)(1)
  Stock Options

Executive

  

  Granted (#)  

 

  Grant Value(2)  

   

  Granted (#)(3)  

   

  Grant Value(4)  

   

  Granted (#)  

   

  Grant Value(5)  

    Granted (#)    Grant Value(2)   Granted (#)(3)   Grant Value(4)   Granted (#)    Grant Value(5)

Russell J. Weiner

   3,710  $1,458,549    3,710   $1,472,017    13,427   $1,458,441 

Sandeep Reddy

   7,790(6)  $3,094,032    1,063   $423,148    3,689   $421,985 

Joseph H. Jordan

   1,908  $750,111    954   $378,519    3,453   $375,065 

Kelly E. Garcia

   1,272  $500,074    636   $252,346    2,302   $250,043 

Arthur P. D’Elia

   1,272  $500,074    636   $252,346    2,302   $250,043 

Richard E. Allison, Jr.

                       

 

 

(1)

The grant date fair value of PSUs is reported based on the probable outcome of the performance conditions (target) on the grant date.

(2)

Based on our closing stock price on March 10, 20222023 of $393.14 per share. For Mr. Reddy, based on our closing stock price on April 1, 2022 of $397.18$300.16 per share.

42    DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT


Compensation Discussion and Analysis (continued)

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(3)

Represents the target number of PSUs. A named executive officer can earn between 0% and 200% of his target award. The number of PSUs earned is then subject to a relative TSR modifier, which operates to, in certain circumstances, increase or decrease the total number of shares earned by 15%25% based on the Company’s TSR relative to the TSR of the constituents of the S&P 500 Index.Composite 1500 Restaurants Sub-Index.

40 DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT


 Compensation Discussion and Analysis (continued)

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(4)

Reflects the aggregate grant date fair value of the March 10, 20222023 PSU awards as determined for financial reporting purposes (based on a grant date fair value of $396.77 using the Monte-Carlo simulation pricing method). For Mr. Reddy, reflects the aggregate grant date fair value of the April 1, 2022 PSU awards as determined for financial reporting purposes (based on a grant date fair value of $398.07$306.19 using the Monte-Carlo simulation pricing method). The underlying valuation assumptions for the PSUs are further discussed in Note 9 to our auditedconsolidated financial statements filed with our 20222023 10-K.

(5)

Based on a Black-Scholes value on March 10, 20222023 of $108.62 per share. For Mr. Reddy, based on a Black-Scholes value on April 1, 2022 of $114.39$91.25 per share. The underlying valuation assumptions for stock option awards are further discussed in Note 9 to our auditedconsolidated financial statements filed with our 20222023 10-K.

(6)

The amount for Mr. Reddy reflects (i) 2,125 RSUs

In 2023, the relative target mix of PSUs granted as part of his annual grant under the EIP and (ii) 5,665 RSUs granted as part of a special, sign-on equity award under the EIP, consisting of an award of RSUs with a grant date value of $2,250,000 that are subject to different vesting terms as discussed in more detail under “—Compensation for Chief Financial Officer” below.

Time-Vesting Restricted Stock Units (RSUs). As discussed above and reflected in the table above, the Compensation Committee continued the use of RSUs as a vehicle for long-term incentive compensation in 2022. RSU awards are full value awards that are subject to time-based vesting conditions. The awards vest ratably over three years in three separate vesting tranches, generally subject to continued employment (with exceptions for certain termination events, such as qualified retirement). The RSUs will convert to unrestricted common stock and be distributed upon vesting of the applicable tranche of the award. The Compensation Committee decided to grant RSUs to encourage retention by providing some value to the named executive officers who remain employed byunder the Company.EIP was increased to provide additional emphasis on the long-term performance incentive portion of the EIP. The target mix of equity awards granted to Mr. Weiner, our CEO, under the EIP in 2023 was comprised of approximately 50% PSUs (at target), 25% RSUs and 25% stock options, representing a change from the target mix in 2022 of approximately 33% PSUs (at target), 33% RSUs and 33% stock options. For our other named executive officers, the target mix in 2023 was comprised of approximately 33% PSUs (at target), 33% RSUs and 33% stock options, representing a change from the target mix in 2022 of approximately 25% PSUs (at target), 50% RSUs and 25% stock options. The Compensation Committee believes that it is important for retentionthis change enhances our performance-based compensation program and further ties executive compensation to have a portionthe creation of long-term incentive awards that is not tied to the achievement of performance goals or future stock price appreciation but is still at-risk with the value fluctuating based on changes in stockholdershareholder value. The RSUs are also eligible to receive dividend equivalents in cash, which will accumulate and pay out, if at all, if and when the RSUs vest and the underlying shares of common stock are distributed to the named executive officers. The actual value of the shares that are earned, if any, will depend on our stock price at the time the RSUs vest. These awards generally also contain provisions for accelerated vesting upon the retirement of holders who have achieved specified service and age requirements.

Long-Term Performance-Based Restricted Stock Units (PSUs). As discussed earlier and reflected in the table above, the Compensation Committee continued the use of PSUs as an additional vehicle for long-term incentive compensation in 2022. 2023 and increased the weighting of such PSUs in the respective equity mixes of our named executive officers to further provide additional emphasis on the long-term performance incentive portion of the EIP. In 2021 and 2022, our named executive officers were granted PSUs that were based on the achievement of adjusted total segment income and global retail sales, excluding foreign currency impact goals on a cumulative basis, over a three-year performance period. Awards granted in 2023 contained performance goals that will be measured on a constant growth rate basis, with three individual annual targets for each performance goal established at the onset of the three-year performance period expressed as a growth rate over the previous year’s actual result. Such shift recognizes an evolution in the prevailing market practice for goal setting for multi-year performance awards and the inherent difficulty in setting three-year cumulative goals, especially in the current operating and macroeconomic environment, and is also designed to ensure that participants remain sufficiently motivated over the full three-year performance period and are not disproportionately impacted, either positively or negatively, by an outlier year within the performance period. The TSR modifier, discussed below, is still measured over the full three-year performance period.

These PSUs, which are granted annually at the beginning of a three-year performance period, reinforce our named executive officers’ accountability for the achievement of the Company’s longer-term financial and strategic goals. PSUs awarded in 2023 are earned based on the achievement of challenging goals at the end offor each year within the three-year performance period, consisting of:

 

 1.

Cumulative adjustedAdjusted total segment income growth, measuring profitability, comprising 70% of the total target award, and

 

 2.

Cumulative globalGlobal retail sales, excluding foreign currency impact growth, measuring growth of the Domino’s brand worldwide, and comprising 30% of the total target award.

Cumulative adjustedEach of these performance goals is measured on a constant growth rate basis, with three individual annual targets for each performance goal established at the onset of the three-year performance period expressed as a growth rate over the previous year’s actual result. Each year’s achievement is then “banked” until the three-year performance period is complete, at which time the achievement for each year in the performance period is averaged to determine the final payout for each metric.

Adjusted total segment income is measured as Segment Income as defined by the Company under ASC 280, with certain adjustments substantially similar to those discussed above under “Annual Performance Incentives,” measured over each year in the three-year performance period. While the Company does not typically report an absolute global retail sales figure, theThe Company uses global retail sales to refer to Domino’s total worldwide retail sales at Company-owned and franchise stores. Cumulative globalGlobal retail sales growth, excluding foreign currency impact, is calculated as the Company’s actual cumulative three-yearchange of international local currency global retail sales translated to United States dollars usingagainst the foreign currency exchange rates as provided incomparable period of the Company’s three-year plan for the three-year period corresponding to the performance period. Cumulative adjustedprior year. Adjusted total segment income growth and cumulative global retail sales, excluding foreign currency impact growth, are two of the key drivers of our performance, represent metrics that we believe are valued by our investors, and reflect an approach to long-term incentive measurement that balances profitability and growth.

DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT 41


 Compensation Discussion and Analysis (continued)

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The PSUs are also subject to a relative TSRthree-year cumulative total shareholder return (“TSR”) modifier, which is a relative return metric that can increase or decrease the total number of shares earned by 15%25% based on the Company’s TSR relative to the TSR of the constituents of the S&P 500 Index.Composite 1500 Restaurants Sub-Index. Shares that are earned following the determination of the cumulative adjusted total segment income and

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    43


Compensation Discussion and Analysis (continued)

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cumulative global retail sales, excluding foreign currency impact growth, metrics will increase by 15%25% if the Company’s three-year relative TSR rank during the performance period falls at or above the 75th percentile and will decrease by 15%25% if such relative TSR rank during the performance period falls at or below the 25th percentile. The weight of the relative TSR modifier applicable to the PSUs was increased from 15% to 25% in 2023 to better align with market practice and place more emphasis on cumulative stock price performance over the three-year performance period (with such TSR modifier continuing to measure cumulative stock price performance over the three-year performance period following which period all earned awards, if any, will be subject to applicable adjustment based on TSR results in order to strengthen the link with long-term shareholder interests). Additionally, the comparison index was changed to the S&P Composite 1500 Restaurants Sub-Index in 2023 from the S&P 500 Index to better assess the Company’s performance as compared to its peers within the restaurant sector. The Compensation Committee believes these changes to the PSUs further improve the alignment between executive compensation and the long-term interests of shareholders.

Performance Metrics

 

 

Cumulative Adjusted Total Segment Income Growth (70%)

 

Measures Profitability

Measured on a Constant Growth Rate Basis with Annual Targets Expressed as a Growth Rate Over the Previous Year’s Actual Result

 

    

 

Cumulative globalGlobal retail sales, excluding foreign

currency impact Growth (30%)

 

Measures Growth of the Domino’s Brand

 

Measured on a Constant Growth Rate Basis with Annual Targets Expressed as a Growth Rate Over the Previous Year’s Actual Result

 

 

 

Relative Total Shareholder Return (TSR) Modifier

 

Measures Three-Year Cumulative Relative Shareholder Return Compared to the S&P 500Composite

1500 Restaurants Sub-Index

Used as upward or downward (+ / - 15%25%) modifier

 

  

The total payout opportunity for PSUs is 0% to 200%: 0% of target will be earned if the threshold level of performance is not satisfied, 50% of targetawards will begin to be earned if the threshold level is satisfied, 100% of target will be earned if the target level is satisfied, and 200% of target will be earned if the maximum level is satisfied. The TSR modifier over the three-year measurement period is then applied to the final earned award. The threshold level of performance for a metric must be satisfied for PSUs to be earned based on that metric. Performance for each metric is measured independently, so PSUs can be earned as long as the threshold is satisfied for at least one metric. Upon the retirement of holders of PSUs who have achieved specified service and age requirements, the awards would generally remain outstanding and eligible to be earned to the extent performance goals are met during the applicable performance period.

Focus on Goal Setting.The target growth levels are designed to be aligned with our long-range business plan, with the annual growth rate targets reflecting meaningful growth overin each year of the three-year performance period and incorporating a degree of stretch that is intended to motivate the named executive officers to achieve higher performance within the Company’s risk framework. The specific performance growth rate targets established by the Compensation Committee are based on the business plans of the Company that are reviewed with and overseen by our Board and take into account a variety of factors including certain strategic plans, programs, commodity pricing and discounts (including long-term supply contracts), product pricing and discounts, volume and sales predictions, corporate store marketing plans and expenses, U.S. and international store count projections, product initiatives, technological initiatives, macroeconomic conditions, general operational needs of the Company and other significant factors related to the Company’s business. In setting the threshold, target and maximum levels of performance for each of the component metrics, the Compensation Committee reviewed historical levels of performance against our long-term

42 DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT


 Compensation Discussion and Analysis (continued)

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business plan and conducted sensitivity analyses on alternative outcomes focused on identifying likely minimum and maximum boundary performance levels. The maximum level is a stretch level that is attainable only if we significantly outperform with respect to the particular metric.

Calculation of Payout of PSUs

 

Step 1

 

   

Step 2

 

 

Level of Metric

Performance 1

 

  

 

Payout as a

Percentage of Target 2

 

 

 

 

Relative TSR Modifier

 

Below Threshold  0%  

At or above the 75th percentile:

Increase by 15%25%

Threshold  50%0% 
Target  100%  

At or Below the 25th percentile:

Reduce by 15%25%

Maximum  200% 

 

1  Performance level expressed as a percent of target based on cumulativeannual adjusted total segment income growth (70%) and cumulativeannual global retail sales, excluding foreign currency impact growth (30%) at the end of, for each year in the fiscal 2022-20242023-2025 performance period.

2  Before TSR modifier. Payout levels based on performance for each metric will be measured independently on an annual basis and interpolated on a straight-line basis for performance between threshold and target or between target and maximum.maximum to determine the performance versus the growth rate targets.

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Compensation Discussion and Analysis (continued)

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If the PSUs become earned upon satisfaction of the performance metrics described above, they will be delivered in the form of unrestricted common stock following the end of the applicable three-year performance period, generally subject to continued employment through the end of the performance period. The PSUs are eligible to receive dividend equivalents in cash, which will accumulate and pay out, if at all, if and when the PSUs are earned and the underlying shares of common stock are distributed to the named executive officers.

The performance period for the 20222023 award of PSUs began on January 3, 20222, 2023 and ends on December 29, 2024.28, 2025. The specific cumulativeannual adjusted total segment income and cumulativeannual global retail sales, excluding foreign currency impact, target valuesgrowth rate targets for each year in the performance period for the PSUs granted in 20222023 will be disclosed at the end of the performance period.

We believe that the design of our existing PSU program as compared with the design of our previous performance share awards, has enhancedfurthers our pay for performance compensation programobjective by addingemphasizing a longer-term performance period, multiple performance metrics and increased performance sensitivity.

Payout for PSUs for Performance Period Ending in 2023. The three-year performance period for PSUs granted in 2021 ended on December 31, 2023. PSUs were earned based on the achievement of pre-established challenging goals at the end of the performance period, consisting of:

1.

Cumulative adjusted total segment income, measuring profitability, comprising 70% of the total target award, and

2.

Cumulative global retail sales, excluding foreign currency impact, measuring growth of the Domino’s brand worldwide, and comprising 30% of the total target award.

DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT 43


 Compensation Discussion and Analysis (continued)

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The Compensation Committee made its final payout determination in January 2024 following a review of the Company’s final fiscal 2023 results. The final number of shares earned was based on the following goals, which remained unchanged from the time of the March 2021 issuance of these PSUs:

PSUs for Fiscal 2021-2023 Performance Period Goals and Results1

(Figures in Millions)

      Threshold   Target   Maximum   Actual 

Cumulative Adjusted Total Segment Income (70%
of Total Target Award)

    $2,511.0   $2,790.0   $2,999.25   $2,732.1

Percentage of target

     90   100   107.5   97.93

Payout opportunity (as a % of target)

     50   100   200   89.63%2 
      Threshold   Target   Maximum   Actual 

Cumulative Global Retail Sales, excluding foreign
currency impact (30% of Target Total Award)

    $49,830.3   $55,367.0   $59,519.53   $56,162.1

Percentage of target

     90   100   107.5   101.44

Payout opportunity (as a % of target)

     50   100   200   119.15%2 

1

These PSUs are also subject to a relative TSR modifier, which is a relative return metric that can increase or decrease the total number of shares earned by 15% based on the Company’s TSR relative to the TSR of the constituents of the S&P 500 Index. Shares that are earned following the determination of the cumulative adjusted total segment income and cumulative global retail sales, excluding foreign currency impact, metrics would increase by 15% if the Company’s three-year relative TSR rank during the performance period falls at or above the 75th percentile and would decrease by 15% if such relative TSR rank during the performance period falls below the 25th percentile. The Company’s relative TSR rank for the performance period was at the 32nd percentile and as a result, the total shares earned were not adjusted.

2

Actual payout percentage reflects interpolation on a straight-line basis of performance between threshold and target or between target and maximum, as applicable.

Based on the Company’s achievement of the goals above, the PSUs granted in fiscal 2021 for the January 4, 2021 – December 31, 2023 performance period paid out at 98.5% of target.

Time-Vesting Restricted Stock Units (RSUs). As discussed and reflected in the table above, the Compensation Committee continued the use of RSUs as a vehicle for long-term incentive compensation in 2023. RSU awards are full value awards that are subject to time-based vesting conditions. The awards vest ratably over three years in three separate vesting tranches, generally subject to continued employment (with exceptions for certain termination events, such as qualified retirement). The RSUs will convert to unrestricted common stock and be distributed upon the vesting of the applicable tranche of the award. The Compensation Committee decided to grant RSUs to encourage retention by providing some value to the named executive officers who remain employed by the Company. The Compensation Committee believes that it is important for retention to have a portion of long-term incentive awards that is not tied to the achievement of performance goals or future stock price appreciation but is still at-risk with the value fluctuating based on changes in stock price. The RSUs are also eligible to receive dividend equivalents in cash, which will accumulate and pay out, if at all, if and when the RSUs vest and the underlying shares of common stock are distributed to the named executive officers. The actual value of the shares that are earned, if any, will depend on our stock price at the time the RSUs vest. These awards generally also contain provisions for accelerated vesting upon the retirement of holders who have achieved specified service and age requirements.

Stock Options. As discussed earlier and reflected in the table above, the Compensation Committee continued its use of stock options as a vehicle for long-term incentive compensation in 20222023 with a vesting period of three years that aligns with the performance period of the PSUs and the vesting period of the RSUs. Recipients of stock option grants do not receive a benefit from the stock options unless and until the market price of the Company’s common stock increases above the exercise price, the stock options vest and the recipient exercises such stock options. Options are intended to provide long-term performance-based compensation tied specifically to increases in the price of the Company’s stock, aligning the interests of executives and stockholders.shareholders. We continued to use stock options because we believe that they encourage employee retention through the use of a time-based vesting schedule and serve to align the interests of our stockholdersshareholders and those of our named executive officers by only providing value if the price of our common stock increases after the stock options are granted.

Vested options are exercisable for a limited period of time after termination of employment.

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 Compensation Discussion and Analysis (continued)

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All options awarded under the EIP are granted with an exercise price equal to the closing price of the Company’s common stock on the grant date of the award, and have a ten-year term. All stock options grantedterm, vest ratably over three years and become fully exercisable upon vesting.vesting of each tranche. These awards also contain provisions for accelerated vesting upon the retirement of holders who have achieved specified service and age requirements. Vested options are exercisable for a limited period of time after termination of employment.

Historical Performance Shares (2020 and earlier). No performance shares were granted in 20222023 after the Compensation Committee discontinued itsthe use of performance shares as a vehicle for long-term incentive compensation in 2021 and instead made the determination to grant PSUs and RSUs. However, performance shares granted in prior years will continue to be included in total compensation for the named executive officers as and to the extent applicable tranches of such performance shares vest.

Performance share awards vest ratably over four years in four separate vesting tranches, generally subject to continued employment, and each vesting tranche is subject to a one-year performance-based vesting condition that is established annually by the Compensation Committee.

Performance shares vest only if the Company achieves 90% or more of the annual performance target (with no additional performance shares earned for performance above 90% of the annual performance target). As part of the January 2023 actions discussed above, performance shares granted with a 2024 vesting tranche vested if the Company achieved 85% or more of the $905.0 million annual performance target (with no additional performance shares earned for performance above 85% of the annual performance target). For the outstanding performance shares granted in prior years, the measurement of performance established by the Compensation Committee was Segment Income as defined by the Company under ASC 280, with certain adjustments (resulting in the same “adjusted total segment income” used by the Company for annual performance incentives, as described above). If the achievement of adjusted total segment income is less than 90% (85% in the case of performance shares granted with a 2024 vesting tranche) of the annual performance target, each vesting tranche for that fiscal year is canceled and forfeited for no consideration. The performance share awards do not contain a provision for partial vesting. All unvested performance shares are generally canceled upon termination of employment, subject to certain exceptions. The performance target with respect to the 20212022 fiscal year was utilized for all performance shares previously granted with a 20222023 vesting tranche; such performance target was achieved at 138.5%94.98% of target and as a result all performance shares subject to a 20222023 vesting tranche vested in full.

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    45


Compensation Discussion and Analysis (continued)

LOGO

Accelerated Vesting. Following a termination of employment, equity awards and other benefits are governed by the terms of those programs, as described under “Executive Compensation Tables – Potential Post-Employment Payments to Named Executive Officers” below.

Other Elements of Compensation

Employee Stock Payroll Deduction Plan. The Company maintains the Employee Stock Payroll Deduction Plan (the “ESPDP”), adopted in July 2004, to provide employees, including our named executive officers, with an opportunity to purchase shares of the Company’s common stock through payroll deductions at a 15% discount from the market price. The ESPDP is a qualified plan under Section 423 of the Internal Revenue Code. Shares of the Company’s common stock purchased under the ESPDP have a one-year holding period requirement before employees can sell the shares. The Compensation Committee believes the ESPDP is an attractive benefit that assists the Company in retaining key employees, securing new qualified employees and providing incentives for employees to work towards achieving the Company’s key objectives because it gives employees access to the Company’s equity at a discounted price and provides additional ties to shareholder value creation.

Pension and Post-Retirement Benefits. The Company does not maintain a defined benefit pension or retiree medical plan for our named executive officers, though we have agreed to provide reimbursement of certain medical expenses to certain individuals who had previously served as our Chief Executive Officer. Mr. Allison was provided with certain post-employment health benefits, as described under “Potential Post-Employment Payments to Named Executive Officers.” The Compensation Committee provided Mr. Allison with this benefit after considering his successful tenure with the Company and the strong performance of the Company under his leadership.

Deferred Compensation. The Company maintains the Domino’s Pizza Deferred Compensation Plan (the “DCP”), a non-qualified elective deferred compensation plan, under which our named executive officers, a select group of

DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT 45


 Compensation Discussion and Analysis (continued)

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management or highly compensated employees and our directors are permitted to defer their own compensation. Deferred amounts under the DCP are notionally invested in mutual funds or other investments available under the DCP. The Company does not provide an employer match for amounts deferred in the DCP or otherwise make employer contributions to the DCP. The DCP is described more fully under “Non-Qualified Deferred Compensation” below.

Perquisites. The Company makes a limited number of perquisites available to our named executive officers. The Company covers expenses for each participating named executive officer for the completion of an annual comprehensive physical for the executive and their spouse. The Company also covers an executive’s annual membership fee for a physician group where the annual physical is provided, along with other preventive care. The Company also reimburses each named executive officer for their personal purchases of Domino’s food items. Named executive officers may also receive certain relocation benefits in connection with their hire. Our CEO is also entitled to a certain number of hours of personal use of the Company’s aircraft, as described below. Mr. Reddy also received certain relocation benefits in connection with his hire, as discussed below. Our President received additional benefits in connection with his expatriate assignment in the Netherlands when he served as EVP, International. Detailed information regarding the perquisites provided to our named executive officers is set forth in the Summary Compensation Table in this Proxy Statement.

Other Benefits. The Company also maintains a benefits program comprised of retirement income and group insurance plans. The objective of the program is to provide our named executive officers and certain other eligible employees with reasonable and competitive levels of benefits for the four contingencies (retirement, death, disability and illness) that will interrupt the eligible employee’s employment and/or income received as an active employee. The retirement program consists of two savings plans: (i) a non-qualified deferred compensation plan (the DCP referenced above), and (ii) a tax-qualified 401(k) savings plan, which includes a Roth savings option (the “Domino’s Pizza 401(k) Savings Plan”). TheAs of December 31, 2023, the Domino’s Pizza 401(k) Savings Plan iswas open to all employees age 18 or older who have also worked at least 1,000 hours for the Company. Beginning in fiscal 2024, employees age 18 or older who have also worked at least 60 days for the Company will be eligible to participate in the Domino’s Pizza 401(k) Savings Plan. The Company provides a match on employee 401(k) contributions equal to 100% on the first 5% of eligible compensation contributed by employees into their 401(k) accounts.

The Company’s group insurance program consists of life, disability and health insurance benefit plans that are offered to employees who work at least 30 hours each week. Additionally, umbrella insurance premiums are paid by the Company

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Compensation Discussion and Analysis (continued)

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for participating named executive officers, and the amounts paid are recorded as compensation (and included in the Summary Compensation Table) for such named executive officers. This umbrella insurance provides high limits of liability to protect the named executive officer against a catastrophic liability loss and stacks on top of the executive’s homeowners, personal auto, watercraft, and any other underlying liability policies.

Compensation for Chief Executive Officer

In February 2022, the Company’s BoardMr. Weiner’s base salary of Directors appointed Mr. Weiner$875,000 became effective with his promotion to succeed Mr. Allison as CEO, effectiveChief Executive Officer, which commenced on May 1, 2022, and to replacewas unchanged by the Compensation Committee for the 2023 fiscal year. Mr. Allison on the Board.

Mr. Weiner entered into a newWeiner’s employment agreement with the Company, effective May 1, 2022, under which he would receive (i)provides for an annual base salary of $875,000, (ii) an annual short-term cashperformance incentive award target under the AIP oftargeted at 200% of his annual base salary, the actual amount of which is based on the Company’s achievement of applicable performance targets under the AIP, and (iii) a 2022 annual equity award with a target value equal to 500% of his base salary, each as described above under “—Compensation Program Overview.”AIP. The Compensation Committee determined the terms of Mr. Weiner’s compensation as CEO with input from Meridian and after reviewing his current compensation arrangements and the compensation of chief executive officers at peer group companies with similar backgrounds and experience.

In March 2022, in accordance with the terms of his employment agreement, Mr. Weiner received equity awards granted under the EIP consisting of (i) a PSU award of 3,710 stock units with a three-year performance period, (ii) an RSU award of 3,710 stock units that vest equally over a three-year period in separate tranches and (iii) a stock option award of 13,427 shares that vest equally over a three-year period, has a ten-year term and an exercise price equal to the closing price of the Company’s common stock on the date of grant. The PSUs, RSUs and stock options have the same terms and conditions as those described under “—Long-term Incentive Compensation” above.

Mr. Weiner’s employment agreement also grants himMr. Weiner an annual allotment of 45 hours of personal use of the Company’s corporate aircraft at no charge to him during the term of the agreement. Mr. Weiner entered into a time-sharing agreement with the Company requiring him to reimburse the Company for personal use over his allotted hours based upon a statutory formula. Mr. Weiner is not provided with a tax gross-up with with respect to his personal use of the Company’s corporate aircraft.

In March 2023, the Compensation Committee approved long-term incentive compensation in the form of an equity grant under the EIP to Mr. Weiner consisting of: (i) a PSU award of 11,661 stock units (at target) with a three-year performance period, (ii) an RSU award of 5,831 stock units that vest equally over a three-year period in separate tranches and (iii) a stock option award of 19,179 shares that vest equally over a three-year period, has a ten-year term and an exercise price equal to the closing price of the Company’s common stock on the date of grant. The PSUs, RSUs and stock options have the same terms and conditions as those described under “—Long-term Incentive Compensation” above.

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 Compensation Discussion and Analysis (continued)

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Based on the Meridian Analysis, Mr. Weiner’s annual base salary in 20222023 was below the market median, his 20222023 annual performance incentive target was above the market median and his long-term incentive compensation was below the market median, resulting in his total direct compensation being below the market median. The Compensation Committee evaluates Mr. Weiner’s compensation in relation to market data and other factors, including his limited tenure as CEO. While the Compensation Committee generally positions target total direct compensation at the median level of the applicable benchmark, as described above, it believes that Mr. Weiner’s compensation is appropriate in relation to his limited tenure as CEO, experience, scale of the Company and other relevant market data. Further, the Compensation Committee believes Mr. Weiner’s compensation package effectively links shareholder and financial performance to his total direct compensation through the use of long-term incentive compensation awards and cash compensation that is primarily based on Company performance.

Compensation for Former Chief Executive Officer

In February 2022, Mr. Allison announced his retirement from his position as CEO and director ofDecember 2023, Meridian provided the Company to be effective April 30, 2022. The Compensation Committee considered this planned retirement when making compensation decisions for the four months in 2022 inMeridian Analysis, which Mr. Allison would continue to serve in these roles.

For fiscal 2022, the Compensation Committee elected to keep Mr. Allison’s annual base salary ($904,000) and target performance incentive (200% of annual base salary) at the same level as fiscal 2021. Given Mr. Allison’s retirement as CEO as of April 30, 2022, the Compensation Committee did not award Mr. Allison any long-term incentive compensation in 2022. Mr. Allison became retirement-eligible prior to his retirement from the Company and, therefore, in accordance

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    47


Compensation Discussion and Analysis (continued)

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with their existing terms, his RSUs and stock options vested in full, the time-vesting condition of his PSUs and performance shares was deemed to be satisfied, and his performance shares will vest, and his PSUs will become earned, when and if the performance vesting conditions with respect to each vesting tranche have been satisfied. In accordance with the terms of his employment agreement, Mr. Allison’s performance incentive payout under the AIP was prorated for fiscal 2022 based on his mid-year retirement, as shown under “2022 Actual Payout” in the “Annual Performance Incentives” section above. In connection with his retirement, the Compensation Committee also approved the health benefits described under “Potential Post-Employment Payments to Named Executive Officers.” Mr. Allison did not receive any cash severance benefits in connection with his retirement.

Compensation for Chief Financial Officer

On March 1, 2022, the Company announced that it had appointed Mr. Reddy as the Company’s Executive Vice President and Chief Financial Officer, effective as of April 1, 2022.

Mr. Reddy entered into an employment agreement with the Company, effective April 1, 2022, under which he would receive (i) an annual base salary of $675,000, (ii) an annual short-term cash incentive award target under the AIP of 100% of his base salary with full-year payout for 2022, the actual amount of which is based on the Company’s achievement of applicable performance targets under the AIP, and (iii) a 2022 annual equity award with a target value equal to 250% of his base salary, each as described above under “—Compensation Program Overview.” In April 2022, in accordance with the terms of his employment agreement, Mr. Reddy received equity awards granted under the EIP consisting of (i) a PSU award of 1,063 stock units with a three-year performance period, (ii) an RSU award of 2,125 stock units that vest equally over a three-year period in three separate tranches and (iii) a stock option award of 3,689 shares that vest equally over a three-year period, has a ten-year term and an exercise price equal to the closing price of the Company’s common stock on the date of grant. In addition, Mr. Reddy received (i) a one-time, sign-on cash bonus of $1,000,000, which is subject to repayment in the event Mr. Reddy’s employment is terminated by the Company for cause or if Mr. Reddy terminates employment with the Company other than for good reason, in either case prior to April 1, 2023, and (ii) a special, sign-on equity award under the EIP, consisting of an award of RSUs with a grant date value of $2,250,000 that will vest as to 50% of the units subject to the award on each of April 1, 2023 and April 1, 2024, generally subject to his continued employment through such dates. Mr. Reddy’s special, sign-on RSU grant consisted of 5,665 stock units that will vest in full upon a termination of Mr. Reddy’s employment (i) by the Company other than for cause, (ii) by Mr. Reddy for good reason or (iii) as a result of Mr. Reddy’s death or disability. Mr. Reddy also received a standard relocation package in accordance with the Company’s policies in relation to its executive officers.

Consistent with the Compensation Committee’s approach in setting annual compensation levels, in determining Mr. Reddy’s compensation package, the Compensation Committee considered, the compensation levels paidamong other factors, when it increased Mr. Weiner’s annual base salary in February 2024 from $875,000 to similarly situated executive officers at the Company, the median of the composite market data reviewed by the Compensation Committee to provide a perspective on external practices, his experience, input from the Compensation Committee’s independent compensation consultant and, with respect to the special, one-time awards, the value of equity awards that Mr. Reddy forfeited upon leaving his prior employer and other lost compensation.$925,000 for 2024.

Employment Agreements

Each of our currently employed named executive officers is party to a written agreement that governs their employment with the Company and includes both severance provisions as well as restrictive covenants that apply for two years following termination of employment. The provisions of the employment agreements relating to termination of employment and severance are described in more detail under “Potential Post-Employment Payments to Named Executive Officers.” We believe entering into non-competition and non-solicitation arrangements with our named executive officers is important to protect the Company following the cessation of their employment and we also believe that severance provisions help attract and retain top-performing executive officers in a competitive market environment.

Stock Ownership Guidelines

The Compensation Committee reviews the Company’s stock ownership guidelines annually. The current guidelines require stock ownership after an accumulation period (five years of employment or service with the Company at the

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Compensation Discussion and Analysis (continued)

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individual’s current executive level) equal to fivesix times base salary for our CEO, andfive times annual cash retainer for our directors, four times base salary for President-level executives, and three times base salary for the other named executive officers. Unvested PSUs and unexercised stock options (both vested and unvested) do not count toward this ownership requirement. These stock ownership guidelines are designed to align management’s and shareholders’ interests and to encourage loyalty and long-term focus of executives. All of our named executive officers and directors who have completed their respective accumulation period under the guidelines are in compliance with such guidelines.

Clawback PolicyRecoupment of Previously Paid Incentive Compensation

TheIn 2023, the Compensation Committee has adopted a clawback policythe Domino’s Pizza, Inc. Policy for Recoupment of Incentive Compensation (the “Recoupment Policy”), which provides thatadheres to the listing standards of the NYSE and the rules of the SEC. The Recoupment Policy requires the Committee to recoup certain cash and equity incentive compensation paid to or deferred by certain executives in the event ofthe Company is required to prepare an accounting restatement due to material non-compliancenoncompliance with any financial reporting requirementsrequirement under the U.S. federal securities laws,laws. Under the Recoupment Policy, the Compensation Committee has the right to use reasonable efforts to recover from any of our current or former executive officers who are subject to Section 16 of the Exchange Act and who receivedwill require recoupment if it determines that incentive-based compensation (including annual cash incentives, performance-based compensation and time-based equity and equity-based awards) during the three-year period preceding the announcementreceived by the Company of its financial statement restatement. Such recovery will be equal toan executive exceeds the amount of excessincentive-based compensation awarded or paid to such executive officer as a result ofthat otherwise would have been received, had it been calculated based on the misstatement. We intend to update our clawback policy to address the recovery of erroneously-awarded incentive compensation in compliance with the requirements of the Dodd-Frank Act, final SEC rules and applicable listing standards.restated amounts.

Tax Considerations

Section 162(m) generally limits the tax deductibility of annual compensation paid by a publicly-held company to $1,000,000 per employee per year for certain executive officers (and beginning in 2018, certain former executive officers), subject to limited exceptions. The Compensation Committee believes that its primary responsibility is to provide an executive compensation program that meets the objectives described above, even if the compensation paid or provided may not qualify for full or partial deductibility. The Company has paid and will continue to pay executive compensation that is not fully deductible under applicable tax law.

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 Compensation Discussion and Analysis (continued)

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Risk Assessment Disclosure

In February of each year, the Compensation Committee, in consultation with its independent compensation consultant and senior human resource executives of the Company, reviews the risk assessment for risks associated with the Company’s compensation practices and policies for employees. Based upon the assessment performed for the 20222023 fiscal year, and most recently for the 20232024 fiscal year, the Compensation Committee believes that, through the counterbalance of risk-taking incentives and risk-mitigating features guided by relevant market practices and Company goals, the Company’s compensation practices and policies do not encourage unnecessary or excessive risk taking and are not reasonably likely to have a material adverse effect on the financial results of the Company.

 

 

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Executive Compensation Tables

 

 LOGO

 

Summary Compensation Table for 20222023

The table below summarizes the total compensation earned by our named executive officers in fiscal 2022,2023, and, to the extent applicable to the individual, 20212022 and 2020.2021. A description of each component of our executive compensation package is described under the heading “Compensation Discussion and Analysis,” which begins on page 31.30. All information set forth in this table reflects compensation earned by these individuals for services with the Company.

 

Name and Principal Position Year 

Salary

($)(1)

 

Bonus

($)(2)

 

Stock

Awards

($)(3)

 

Option

Awards

($)(4)

 Non-Equity
Incentive Plan
Compensation
($)
 

Change in Pension
Value and Non-
qualified Deferred
Compensation
Earnings

($)

 All Other
Compensation
($)(5)
 Total
($)
  Year 

Salary

($)(1)

 

Bonus

($)

 

Stock

Awards

($)(2)

 

Option

Awards

($)(3)

 Non-Equity
Incentive Plan
Compensation
($)
 

Change in Pension
Value and Non-
qualified Deferred
Compensation
Earnings

($)

 All Other
Compensation
($)(4)
 Total
($)
 

Russell J. Weiner

Chief Executive Officer

 2022  840,385     3,095,217  1,458,441  800,870     441,819  6,636,731  2023  875,000     5,320,715  1,750,084  1,860,250     329,814  10,135,862 
 2021  775,000     1,790,857  387,579  1,610,063     51,418  4,614,916   2022  840,385     3,095,217  1,458,441  800,870     441,819  6,636,731 
 2020  778,846     892,773  751,038  1,720,125     48,614  4,191,396   2021  775,000     1,790,857  387,579  1,610,063     51,418  4,614,916 

Sandeep Reddy

Executive Vice President,

Chief Financial Officer

 2022  495,865  1,000,000  3,517,181  421,985  336,150     109,609  5,880,790 
 2021                         
 2020                         

Sandeep Reddy

Executive Vice President,

Chief Financial Officer

Sandeep Reddy

Executive Vice President,

Chief Financial Officer

 2023  682,692     1,961,542  970,900  728,155     73,555  4,416,844 

Sandeep Reddy

Executive Vice President,

Chief Financial Officer

2022  495,865  1,000,000  3,517,181  421,985  336,150     109,609  5,880,790 
                         

Joseph H. Jordan

President, U.S. & Global Services

Joseph H. Jordan

President, U.S. & Global Services

 2022  561,923     1,181,101  375,065  399,768     830,833  3,348,689 

Joseph H. Jordan

President, U.S. & Global Services

 2023  623,077     2,273,206  1,125,021  1,004,535     522,018  5,547,857 
 2021  490,000     741,433  183,836  678,650     515,141  2,609,060 

Joseph H. Jordan

President, U.S. & Global Services

2022  561,923     1,181,101  375,065  399,768     830,833  3,348,689 
 2020  477,885     286,198  238,005  532,465     966,113  2,500,666   490,000     741,433  183,836  678,650     515,141  2,609,060 

Kelly E. Garcia

Executive Vice President,

Chief Technology Officer

 2022  482,692     820,451  250,043  249,000     31,491  1,833,678 
 2021                         
 2020                         

Kelly E. Garcia

Executive Vice President,

Chief Technology Officer

Kelly E. Garcia

Executive Vice President,

Chief Technology Officer

 2023  519,231     1,515,269  750,075  558,075     38,743  3,381,393 

Kelly E. Garcia

Executive Vice President,

Chief Technology Officer

2022  482,692     820,451  250,043  249,000     31,491  1,833,678 
                         

Arthur P. D’Elia

Executive Vice President,

International

 2022  487,308     800,910  250,043  249,000     40,147  1,827,409 
 2021                         
 2020                         

Richard E. Allison, Jr.

Former Chief Executive Officer

 2022  504,154     196,857     478,559     397,603  1,577,173 
 2021  904,000     2,556,092  904,039  2,504,080     269,792  7,138,002 
 2020  929,423     1,057,918  1,343,406  2,736,910     227,573  6,295,230 

Arthur P. D’Elia

Executive Vice President,

International

Arthur P. D’Elia

Executive Vice President,

International

 2023  519,231     1,515,269  750,075  558,075     37,667  3,380,317 

Arthur P. D’Elia

Executive Vice President,

International

2022  487,308     800,910  250,043  249,000     40,147  1,827,409 
                         

 

 

(1)

Reflects increases in base salary that took effect during 20222023 as described under “Compensation Discussion and Analysis—Components of Total Direct Compensation—Annual Base Salary.” Base salaries paid in fiscal 2020 reflect that fiscal 2020 was a 53-week fiscal year.

(2)

Mr. Reddy joined the Company on April 1, 2022. In connection with his hiring, Mr. Reddy received a cash sign-on bonus of $1,000,000, primarily to replace foregone compensation from his previous employer. This bonus is subject to repayment in the event Mr. Reddy’s employment is terminated by the Company for cause or if Mr. Reddy terminates employment with the Company other than for good reason, in either case prior to April 1, 2023.

(3)

The dollar amounts listed do not necessarily reflect the dollar amounts of compensation actually realized or that may be realized by our named executive officers. The stock awards for 2023 reflect the aggregate grant date fair value of awards of RSUs and PSUs granted pursuant to our EIP in 2023, determined in accordance with ASC 718 and, in the case of PSUs, based upon the probable outcome of the applicable performance conditions. The grant date fair value of PSUs is based on the probable outcome of the performance conditions on the grant date, which assumes that the performance conditions were satisfied at target. The aggregate grant date fair value of the PSUs granted in 2023, assuming the highest level of the performance conditions is met, was $7,140,963 for Mr. Weiner; $1,981,049 for Mr. Reddy; $2,295,813 for Mr. Jordan; $1,530,338 for Mr. Garcia and $1,530,338 for Mr. D’Elia. The number of PSUs earned is subject to a relative TSR modifier, which operates by, in certain circumstances, increasing or decreasing the total number of shares earned by 25% based on the Company’s TSR relative to the TSR of the constituents of the S&P Composite 1500 Restaurants Sub-Index. The grant date fair value of RSUs is based on the number of RSUs subject to the award multiplied by the closing price of the Company’s common stock on the NYSE on the date of grant. The stock awards for 2022 reflect the aggregate grant date fair value of awards of RSUs and PSUs granted pursuant to our EIP in 2022 and also include the fourth tranche of the performance share awards granted in 2020 (or the number of shares in each award that were valued for accounting purposes as of January 1, 2023, the last day of the Company’s 2022 fiscal year), determined in accordance with ASC 718 based upon the probable outcome of the applicable performance conditions (which, in the case of performance shares, assumes that the performance conditions were satisfied in full). The grant date fair value of PSUs is based on the probable outcome of the performance conditions on the grant date, which assumes that the performance conditions were satisfied at target. The aggregate grant date fair value of the PSUs granted in 2022, assuming the highest level of the performance conditions is met, was $2,944,033 for Mr. Weiner; $846,297 for Mr. Reddy; $757,037 for Mr. Jordan; $504,691 for Mr. Garcia and $504,691 for Mr. D’Elia. The number of PSUs earned is subject to a relative TSR modifier, which operates by, in certain circumstances, increasing or decreasing the total number of shares earned by 15% based on the Company’s TSR relative to the TSR of the constituents of the S&P 500 Index. The stock awards for 2021 reflect the aggregate grant date fair value of awards of RSUs and PSUs granted pursuant to our EIP in 2021 and also include the third tranche of the performance share awards granted in 2020 and the fourth tranche of the performance share awards granted in 2019 (or the number of shares in each award that were valued for accounting purposes as of January 2, 2022, the last day of the Company’s 2021 fiscal year). The stock awards for 2020 represent the first two tranches of the performance share awards granted in 2020, the third tranche of the performance share awards granted in 2019 and the fourth tranche of the performance share awards granted in 2018 (or the number of shares in each award that were valued for accounting purposes as of January 3, 2021, the last day of the Company’s 2020 fiscal year). The assumptions used in the calculation of these amounts are included in Note 9 to the Company’s consolidated financial statements for the fiscal year ended January 1,December 31, 2023 included in the 20222023 10-K.

(4)(3)

The dollar amounts listed do not necessarily reflect the dollar amounts of compensation actually realized or that may be realized by our named executive officers. The amounts listed reflect the grant date fair value of stock option awards granted pursuant to our EIP, determined in accordance with ASC 718, and, with respect to stock options granted in fiscal 2022,2023, are based on a Black-Scholes value on March 10, 20222023 of $108.62$91.25 per share in the case of Messrs. Weiner, Jordan, Garcia and D’Elia and based on a Black-Scholes value on April 1, 2022 of $114.39 per share in the case of Mr. Reddy.share. The assumptions used in the calculation of these amounts are included in Note 9 to the Company’s consolidated financial statements for the fiscal year ended January 1,December 31, 2023 included in the 20222023 10-K.

(5)(4)

The 20222023 amounts listed for all named executive officers are further described in the All Other Compensation table below.

 

 

50    DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 49


 

Executive Compensation Tables (continued)

 

 LOGO

 

The following table below shows amounts under the All Other Compensation column for 2022:2023:

 

Name  Year   

Perquisites and
Other Personal
Benefits

($)(1)

   

Insurance

Premiums /

Medical

Reimbursements

($)(2)

   

Company

Contributions to

Retirement,

401(k) and
Health Savings
Plans

($)(3)

   

Tax

Reimbursements

($)(4)

   

Dividends

($)(5)

   

Total

($)

   Year   

Perquisites and
Other Personal
Benefits

($)(1)

   

Insurance

Premiums /

Medical

Reimbursements

($)(2)

   

Company

Contributions to

Retirement,

401(k) and
Health Savings
Plans

($)(3)

   

Tax

Reimbursements

($)(4)

   

Dividends

($)(5)

   

Total

($)

 

Russell J. Weiner

   2022    233,583    8,767    15,250    13,305    170,914    441,819    2023    262,069    11,750    16,500    11,672    27,823    329,814 

Sandeep Reddy

   2022    54,268    8,159        47,181        109,609    2023    14,013    9,218    16,500    17,854    15,970    73,555 

Joseph H. Jordan

   2022    143,108    7,482    15,250    657,603    7,388    830,833    2023    5,428    9,011    16,500    480,563    10,516    522,018 

Kelly E. Garcia

   2022    3,090    3,841    15,250    2,854    6,456    31,491    2023    3,726    4,703    16,500    4,568    9,246    38,743 

Arthur P. D’Elia

   2022    1,293    7,477    15,250    6,229    9,898    40,147    2023    1,604    8,303    15,335    4,044    8,381    37,667 

Richard E. Allison, Jr.

   2022    136,256    2,542    15,250    1,572    241,983    397,603 

 

 

(1)

Amounts in this column include personal usage of corporate aircraft, relocation expenses, employee recognition gifts and purchases of Domino’s food items. None of the amounts in this column individually exceeded the greater of $25,000 or 10% of the total amount of these perquisites and other personal benefits shown in this column for each named executive officer, except with respect to the cost of personal use of corporate aircraft by Mr. Weiner ($258,039). The amount reported for Mr. Weiner’s amount represents $226,261 for personal usage of the corporate aircraft and $7,322 in purchases of Domino’s food items. Mr. Reddy’s amount represents $44,623 in relocation assistance related to his hiring, $6,480 for reimbursement of attorney’s fees in connection with the review of his employment agreement, $1,000 in team member awards and $2,165 in purchases of Domino’s food items. Mr. Jordan’s amount represents $1,000 in team member awards, $3,437 in purchases of Domino’s food items, additional benefits in relation to his expatriate assignment, which include $50,550 in respect of cost-of-living allowances and $18,820 in respect of home leave, and $69,301 in relocation assistance related to the end of his expatriate assignment. Mr. Garcia’s amount represents $1,000 in team member awards and $2,090 in purchases of Domino’s food items. Mr. D’Elia’s amount represents $1,000 in team member awards and $293 in purchases of Domino’s food items. Mr. Allison’s amount represents $134,854 for personal use of the corporate aircraft and $1,402 in purchases of Domino’s food items. The amounts reported for Mr. Weiner’s and Mr. Allison’s personal usage of the corporate aircraft areis based on the incremental cost method. The incremental cost is based on the variable operating costs to the Company for operating the airplane, including, but not limited to fuel costs, parking, landing fees, travel fees, catering and other miscellaneous direct costs. The total annual variable costs are divided by the annual number of flight hours flown by the airplane to calculate an average variable cost per flight hour. This average variable flight cost per flight hour is then multiplied by the number of flight hours of personal use to calculate the incremental cost for the executive. For tax purposes, income is imputed to the executive for personal travel based on a multiple of the Standard Industry Fare Level (“SIFL”) rates. Executives are not provided with a tax gross-up on personal usage of the corporate aircraft. The table does not include any amounts related to the use of tickets for sporting events by the named executive officers because no incremental costs are incurred by the Company in providing these benefits. The Company purchases season tickets to sporting events for business outings with franchisees and other business partners. If the tickets are not being used for business purposes, the named executive officers and other team members may have opportunities to use these tickets. This table does not include any amount attributable to spousal travel in connection with business usage of corporate aircraft because no incremental costs are incurred by the Company in connection with the spouse accompanying the named executive officer on the aircraft.

(2)

Mr. Weiner’s amount represents Company-paid premiums of $3,166$3,893 for umbrella liability insurance, Company-paid premiums of $2,001$4,257 for group term life insurance and Company-paid premiums of $3,600 for executive physicals. Mr. Reddy’s amount represents Company-paid premiums of $3,166$3,893 for umbrella liability insurance, Company-paid premiums of $1,393$1,725 for group term life insurance and Company-paid premiums of $3,600 for executive physicals. Mr. Jordan’s amount represents Company-paid premiums of $3,166$3,893 for umbrella liability insurance, Company-paid premiums of $716$1,518 for group term life insurance and Company-paid premiums of $3,600 for executive physicals. Mr. Garcia’s amount represents Company-paid premiums of $3,166$3,893 for umbrella liability insurance and Company-paid premiums of $675$810 for group term life insurance. Mr. D’Elia’s amount represents Company-paid premiums of $3,166$3,893 for umbrella liability insurance, Company-paid premiums of $711$810 for group term life insurance and Company-paid premiums of $3,600 for executive physicals. Mr. Allison’s amount represents Company-paid premiums for group term life insurance.

(3)

Represents the amount of the Company match made to the Domino’s Pizza 401(k) Savings Plan described above for each named executive officer.

(4)

Mr. Weiner’s amount represents a tax gross-up on umbrella liability insurance premium payments in the amount of $2,447,$2,985, a tax gross-up on Company-paid medical expenses in the amount of $2,783$2,760 and a tax gross-up on certain other perquisites in the amount of $8,075.$5,927. Mr. Reddy’s amount represents a tax gross-up on umbrella liability insurance premium payments in the amount of $2,447,$2,985, a tax gross-up on Company-paid medical expenses in the amount of $2,783,$2,760, a tax gross-up on benefits in relation to his relocation assistance of $34,496$4,297 and a tax gross-up on certain other perquisites in the amount of $7,456.$7,812. Mr. Jordan’s amount represents a tax gross-up on umbrella liability insurance premium payments in the amount of $1,268,$1,544, a tax gross-up on Company-paid medical expenses in the amount of $1,442, a tax gross-up on benefits in relation to his relocation assistance of $30,119,$1,428, a tax gross-up on benefits in relation to his expatriate assignment of $47,935, Dutch wage taxes$77,493, tax reimbursements in the amountrelation to his expatriate assignment of $574,303$395,026 and a tax gross-up on certain other perquisites in the amount of $2,536.$5,072. Mr. Garcia’s amount represents a tax gross-up on umbrella liability insurance premium payments in the amount of $1,268$1,544 and a tax gross-up on certain other perquisites in the amount of $1,586.$3,024. Mr. D’Elia’s amount represents a tax gross-up on umbrella liability insurance premium payments in the amount of $2,447,1,544, a tax gross-up on Company-paid medical expenses in the amount of $2,783$1,428 and a tax gross-up on certain other perquisites in the amount of $999. Mr. Allison’s amount represents$1,072. Executives are not provided with a tax gross-up on certain other perquisites inpersonal usage of the amount of $1,572.corporate aircraft.

(5)

Represents dividends paid by the Company on a quarterly basis on stock awards, including dividends accrued on unvested performance shares, and for Messrs. Weiner and Allison, restricted stock awards,units and unvested performance shares, that were paid during 20222023 at the time of vesting of such performance shares or restricted stock awards,units or performance shares, as applicable.

 

 

50 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT    51


 

Executive Compensation Tables (continued)

 

 LOGO

 

Grants of Plan-Based Awards

The following table sets forth information concerning non-equity incentive plan awards and individual awards of stock options, RSUs and PSUs granted during the fiscal year ended January 1,December 31, 2023 as well as performance shares granted in prior years to each of the named executive officers.

 

   Estimated Future 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
(#)
 All Other
Option
Awards:
Number of
Securities
Underlying
Options
(#)(4)
 Exercise
or Base
Price of
Option
Awards
($/Sh)(5)
 Grant Date
Fair Value
of Stock
and Option
Awards
($)(6)
    Estimated Future 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
(#)
 All Other
Option
Awards:
Number of
Securities
Underlying
Options
(#)(4)
 Exercise
or Base
Price of
Option
Awards
($/Sh)(5)
 Grant Date
Fair Value
of Stock
and Option
Awards
($)(6)
 
Name Grant Date 

Threshold

($)(1)

 

Target

($)(2)

 

Maximum

($)(3)

 

Threshold

(#)

 

Target

(#)

 

Maximum

(#)

  Grant Date 

Threshold

($)(1)

 

Target

($)(2)

 

Maximum

($)(3)

 

Threshold

(#)

 

Target

(#)

 

Maximum

(#)

 

Russell J. Weiner

           

AIP

  0  1,608,173  4,020,433                         0  1,750,000  4,375,000                      

Stock Options

 3/10/2022                       13,427  393.14  1,458,441  3/10/2023                       19,179  300.16  1,750,084 

RSUs(7)

 3/10/2022                    3,710        1,458,549  3/10/2023                    5,831        1,750,233 

PSUs(8)

 3/10/2022           1,855  3,710  7,420           1,472,017  3/10/2023           5,831  11,661  23,322           3,569,782 

Performance Shares(9)

 12/13/2022              455(10)              164,651 

Sandeep Reddy

           

AIP

  0  675,000  1,687,500                         0  685,000  1,712,500                      

Stock Options

 4/1/2022                       3,689  397.18  421,985  3/10/2023                       10,640  300.16  970,900 

RSUs(7)

 4/1/2022                    2,125        844,008 

RSUs(7)

 4/1/2022                    5,665        2,250,025  3/10/2023                    3,235        971,018 

PSUs(8)

 4/1/2022           532  1,063  2,126           423,148  3/10/2023           1,618  3,235  6,470           990,525 

Joseph H. Jordan

           

AIP

  0  802,747  2,006,868                         0  945,000  2,362,500                      

Stock Options

 3/10/2022                       3,453  393.14  375,065  3/10/2023                       12,329  300.16  1,125,021 

RSUs(7)

 3/10/2022                    1,908        750,111  3/10/2023                    3,749        1,125,300 

PSUs(8)

 3/10/2022           477  954  1,908           378,519  3/10/2023           1,875  3,749  7,498           1,147,906 

Performance Shares(9)

 12/13/2022              145(11)              52,471 

Kelly E. Garcia

           

AIP

  0  500,000  1,250,000                         0  525,000  1,312,500                      

Stock Options

 3/10/2022                       2,302  393.14  250,043  3/10/2023                       8,220  300.16  750,075 

RSUs(7)

 3/10/2022                    1,272        500,074  3/10/2023                    2,499        750,100 

PSUs(8)

 3/10/2022           318  636  1,272           252,346  3/10/2023           1,250  2,499  4,998           765,169 

Performance Shares(9)

 12/13/2022              129(12)              46,681 

Performance Shares(9)

 12/13/2022              35(13)              12,665 

Performance Shares(9)

 12/13/2022              24(14)              8,685 

Arthur P. D’Elia

           

AIP

  0  500,000  1,250,000                         0  525,000  1,312,500                      

Stock Options

 3/10/2022                       2,302  393.14  250,043  3/10/2023                       8,220  300.16  750,075 

RSUs(7)

 3/10/2022                    1,272        500,074  3/10/2023                    2,499        750,100 

PSUs(8)

 3/10/2022           318  636  1,272           252,346  3/10/2023           1,250  2,499  4,998           765,169 

Performance Shares(9)

 12/13/2022              134(15)              48,491 

Richard E. Allison, Jr.

           

AIP

  0  960,962  2,402,405                      

Performance Shares(9)

 12/13/2022              544(16)              196,857 

 

 

(1)

Represents the amount to which such executive would be entitled if the Company had achieved 90%85% of its annual performance target under the AIP, as described above under “Compensation Discussion and Analysis – Annual Performance Incentives.”

(2)

Represents the amount to which such executive would be entitled if the Company had achieved 100% of its annual performance target under the AIP. Certain executives’ target annual performance incentives were modified during fiscal 2022 as described under “Compensation Discussion and Analysis—Annual Performance Incentives” and the amount of the incentive which may be earned is based on their target annual incentive pre- and post-modification (based on the period such incentive targets were in effect during the fiscal year) multiplied by each named executive officer’s final 2022 salary. For Mr. Allison, such dollar value is equal to the portion of the annual performance cash incentive that would have otherwise been payable to him for fiscal year 2022 under the AIP prorated for the date of his retirement from the Company (July 15, 2022).

(3)

Represents the annual maximum amount that such executive would be entitled to receive under the AIP, which is calculated as the lesser of (i) 250% of the executive’s annual performance incentive target and (ii) $5,000,000.

52    DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT


Executive Compensation Tables (continued)

LOGO

(4)

Represents stock option awards awarded in March 2022 (or April 2022 in the case of Mr. Reddy)2023 under the EIP, as described under “Compensation Discussion and Analysis – Long-term Incentive Compensation” above.

(5)

Determined based on the closing price of the Company’s common stock on the NYSE on the date of grant.

(6)

Represents the total ASC 718 grant date fair value of the option awards, determined in accordance with ASC 718, and the total ASC 718 grant date fair value of the RSUs PSUs and performance sharePSUs awards. The grant date fair value of PSUs is reported based on the probable outcome of the performance conditions on the grant date (which assume that the performance conditions were satisfied at target) multiplied by the grant date fair value of $306.19 using the Monte-Carlo simulation pricing method and the grant date fair value of RSUs is based on the number of RSUs subject to the award (multipliedmultiplied by the closing price of the Company’s common stock on the NYSE on the date of grant). The grant date fair value of the performance share awards is reported based upon the probable outcome of the applicable performance conditions (which assume that the performance conditions were satisfied in full).grant. The assumptions used in the calculation of these amounts are included in Note 9 to the Company’s consolidated financial statements for the fiscal year ended January 1,December 31, 2023 included in the 20222023 10-K. See footnotefootnotes (2) and (3) to the Summary Compensation Table above.

(7)

Represents RSUs awarded in March 2022 (or April 2022 in the case of Mr. Reddy)2023 under the EIP, as described under “Compensation Discussion and Analysis – Long-term Incentive Compensation” above.

(8)

Represents PSUs awarded in March 2022 (or April 2022 in the case of Mr. Reddy)2023 under the EIP, as described under “Compensation Discussion and Analysis – Long-term Incentive Compensation” above. The maximum number of shares does not give effect to the relative TSR modifier, which can increase or decrease the total number of shares earned by 15%25% based on the Company’s TSR relative to the TSR of the constituents of the S&P 500 Index.Composite 1500 Restaurants Sub-Index. In order for the PSUs to vest, the performance conditions associated with such awards must be achieved at least at a threshold level and the named executive officer must be an employee of the Company on the third anniversary of the date of grant (March 10, 2025)2026), except as described under “—Potential Post-Employment Payments to Named Executive Officers” below.

(9)

Represents the fourth tranche of the performance share awards granted in 2020 (or the number of shares in each award that have been valued for accounting purposes for fiscal 2022). Each vesting tranche of performance share awards contains a performance condition established annually by the Compensation Committee. In order for each tranche to vest, such performance condition must be achieved, and the named executive officer must be an employee of the Company on such vesting date, except as described under “—Potential Post-Employment Payments to Named Executive Officers” below.

(10)

Represents one-fourth of the maximum shares granted under a performance share award in July 2020; the maximum number of shares granted under this performance share award is 1,820.

(11)

Represents one-fourth of the maximum shares granted under a performance share award in July 2020; the maximum number of shares granted under this performance share award is 580.

(12)

Represents one-fourth of the maximum shares granted under a performance share award in July 2020; the maximum number of shares granted under this performance share award is 510.

(13)

Represents one-fourth of the maximum shares granted under a performance share award in July 2020; the maximum number of shares granted under this performance share award is 140.

(14)

Represents one-fourth of the maximum shares granted under a performance share award in October 2020; the maximum number of shares granted under this performance share award is 90.

(15)

Represents one-fourth of the maximum shares granted under a performance share award in July 2020; the maximum number of shares granted under this performance share award is 530.

(16)

Represents one-fourth of the maximum shares granted under a performance share award in July 2020; the maximum number of shares granted under this performance share award is 2,170.

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT5351

 


 

Executive Compensation Tables (continued)

 

 LOGO

 

Outstanding Equity Awards at Fiscal Year-End

The following table sets forth information on outstanding option and stock awards for each of the named executive officers as of January 1,December 31, 2023:

 

  Option Awards Stock Awards   Option Awards Stock Awards 
  

 

Number of

Securities
Underlying
Unexercised
Options
(#)

   

 

Number of

Securities
Underlying
Unexercised
Options
(#)

   Option
Exercise
Price
($)
   Option Expiration
Date
 Number of
Shares or
Units of
Stock That
Have Not
Vested
(#)(1)
 Market
Value
of

Shares
or Units
of
Stock
That
Have Not
Vested
($)(2)
   Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares,
Units or
Other

Rights
That Have
Not Vested
(#)(3)
 Equity
Incentive
Plan
Awards:
Market or
Payout
Value of
Unearned
Shares,
Units or
Other
Rights That
Have Not

Vested
($)(4)
   

 

Number of

Securities
Underlying
Unexercised
Options
(#)

   

 

Number of

Securities
Underlying
Unexercised
Options
(#)

   Option
Exercise
Price
($)
   Option Expiration
Date
 Number of
Shares or
Units of
Stock That
Have Not
Vested
(#)(1)
 Market

Value
of
Shares
or Units
of
Stock
That
Have Not
Vested
($)(2)
   Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares,
Units or
Other
Rights
That Have
Not Vested

(#)(3)
 Equity
Incentive
Plan
Awards:
Market or
Payout
Value of
Unearned
Shares,
Units or
Other
Rights That
Have Not

Vested
($)(4)
 
Name  Exercisable   Unexercisable   Exercisable   Unexercisable 

Russell J. Weiner

   15,960    0    73.04    7/16/2024(5)                 15,960    0    73.04    7/16/2024(5)              
   11,780    0    118.54    7/15/2025(5)               11,780    0    118.54    7/15/2025(5)              
   10,850    0    136.89    7/20/2026(5)               10,850    0    136.89    7/20/2026(5)              
   7,330    0    212.52    7/19/2027(5)               7,330    0    212.52    7/19/2027(5)              
   10,030    0    283.68    7/18/2028(5)               10,030    0    283.68    7/18/2028(5)              
   9,180    3,060    275.35    7/10/2029(5)               12,240    0    275.35    7/10/2029(5)              
   3,550    3,550    413.68    7/15/2030(5)               5,325    1,775    413.68    7/15/2030(5)              
   1,382    2,765    367.79    3/31/2031(6)               2,764    1,383    367.79    3/31/2031(6)              
   0    13,427    393.14    3/10/2032(6)               4,475    8,952    393.14    3/10/2032(6)              
                         729(7)  252,526  0    19,179    300.16    3/10/2033(6)              
                         910(8)  315,224                        455(7)  187,565 
                 1,406(9)  487,038                       703(8)  289,798        
                 3,710(10)  1,285,144                       2,474(9)  1,019,857        
                         1,054(11)  365,106                5,831(10)  2,403,713        
                         3,710(12)  1,285,144                        1,038(11)  427,895 
                       3,710(12)  1,529,373 
                       11,661(13)  4,807,014 

Sandeep Reddy

Sandeep Reddy

Sandeep Reddy

Sandeep Reddy

   0    3,689    397.18    4/1/2032(6)                 1,229    2,460    397.18    4/1/2032(6)              
                 2,125(13)  736,100         0    10,640    300.16    3/10/2033(6)              
                 5,665(14)  1,962,356                       1,417(14)  584,130        
                         1,063(15)  368,223                2,832(15)  1,167,435        
               3,235(10)  1,333,564        
                       1,063(16)  438,200 
                       3,235(13)  1,333,564 

Joseph H. Jordan

Joseph H. Jordan

Joseph H. Jordan

Joseph H. Jordan

   2,630    0    118.54    7/15/2025(5)                 2,630    0    118.54    7/15/2025(5)              
   3,100    0    136.89    7/20/2026(5)               3,100    0    136.89    7/20/2026(5)              
   2,350    0    136.89    7/20/2026(5)               2,350    0    136.89    7/20/2026(5)              
   4,870    0    168.21    11/7/2026(5)               4,870    0    168.21    11/7/2026(5)              
   2,450    0    212.52    7/19/2027(5)               2,450    0    212.52    7/19/2027(5)              
   3,620    0    232.43    4/9/2028(5)               3,620    0    232.43    4/9/2028(5)              
   2,640    880    275.35    7/10/2029(5)               3,520    0    275.35    7/10/2029(5)              
   1,125    1,125    413.68    7/15/2030(5)               1,687    563    413.68    7/15/2030(5)              
   655    1,312    367.79    3/31/2031(6)               1,311    656    367.79    3/31/2031(6)              
   0    3,453    393.14    3/10/2032(6)               1,151    2,302    393.14    3/10/2032(6)              
                         210(7)  72,744  0    12,329    300.16    3/10/2033(6)              
                         290(8)  100,456                        145(7)  59,773 
                 667(9)  231,049                       334(8)  137,685        
                 1,908(10)  660,931                       1,272(9)  524,357        
                         500(11)  173,200                3,749(10)  1,545,450        
                         954(12)  330,466 

 

 

 

5452DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT


 

Executive Compensation Tables (continued)

 

 LOGO

 

   Option Awards  Stock Awards 
   

 

Number of

Securities
Underlying
Unexercised
Options
(#)

   

 

Number of

Securities
Underlying
Unexercised
Options
(#)

   Option
Exercise
Price
($)
   Option Expiration
Date
  Number of
Shares or
Units of
Stock That
Have Not
Vested
(#)(1)
  Market
Value
of

Shares
or Units
of
Stock
That
Have Not
Vested
($)(2)
   Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares,
Units or
Other

Rights
That Have
Not Vested
(#)(3)
  Equity
Incentive
Plan
Awards:
Market or
Payout
Value of
Unearned
Shares,
Units or
Other
Rights
That
Have Not

Vested
($)(4)
 
Name  Exercisable   Unexercisable 

Kelly E. Garcia

   2,200    0    118.54    7/15/2025(5)              
   1,950    0    136.89    7/20/2026(5)              
   4,870    0    168.21    11/7/2026(5)              
   1,540    0    212.52    7/19/2027(5)              
   1,370    0    283.68    7/18/2028(5)              
   757    253    275.35    7/10/2029(5)              
   217    73    275.35    7/10/2029(5)              
   335    335    413.68    7/15/2030(5)              
   90    90    413.68    7/15/2030(5)              
   170    170    433.78    10/2/2030(5)              
   379    758    367.79    3/31/2031(6)              
   0    2,302    393.14    3/10/2032(6)              
                         180(7)   62,352 
                         54(7)   18,706 
                         256(8)   88,678 
                         70(8)   24,248 
                         46(16)   15,934 
                  386(9)   133,710        
                  1,272(10)   440,621        
                         289(11)   100,110 
                         636(12)   220,310 

Arthur P. D’Elia

   892    298    275.35    7/10/2029(5)              
   1,030    1,030    413.68    7/15/2030(5)              
   397    794    367.79    3/31/2031(6)              
   0    2,302    393.14    3/10/2032(6)              
                         214(7)   74,130 
                         266(8)   92,142 
                  404(9)   139,946        
                  1,272(10)   440,621        
                         303(11)   104,959 
                         636(12)   220,310 

Richard E. Allison, Jr.

   7,110    0    73.04    7/16/2024(5)              
   11,780    0    118.54    7/15/2025(5)              
   10,850    0    136.89    7/20/2026(5)              
   7,330    0    212.52    7/19/2027(5)              
   17,940    0    283.68    7/18/2028(5)              
   21,440    0    275.35    7/10/2029(5)              
   12,700    0    413.68    7/15/2030(5)              
   9,673    0    367.79    3/31/2031(6)              
                         850(7)   294,440 
                         1,086(8)   376,190 
                         2,458(11)   851,451 

   Option Awards  Stock Awards 
   

 

Number of

Securities
Underlying
Unexercised
Options
(#)

   

 

Number of

Securities
Underlying
Unexercised
Options
(#)

   Option
Exercise
Price
($)
   Option Expiration
Date
  Number of
Shares or
Units of
Stock That
Have Not
Vested
(#)(1)
  Market

Value
of
Shares
or Units
of
Stock
That
Have Not
Vested
($)(2)
   Equity
Incentive
Plan
Awards:
Number of
Unearned
Shares,
Units or
Other
Rights
That Have
Not Vested

(#)(3)
  Equity
Incentive
Plan
Awards:
Market or
Payout
Value of
Unearned
Shares,
Units or
Other
Rights That
Have Not

Vested
($)(4)
 
Name  Exercisable   Unexercisable 
                         493(11)   203,229 
                         954(12)   393,267 
                         3,749(13)   1,545,450 

Kelly E. Garcia

   2,200    0    118.54    7/15/2025(5)              
   1,950    0    136.89    7/20/2026(5)              
   4,870    0    168.21    11/7/2026(5)              
   1,540    0    212.52    7/19/2027(5)              
   1,370    0    283.68    7/18/2028(5)              
   1,010    0    275.35    7/10/2029(5)              
   290    0    275.35    7/10/2029(5)              
   502    168    413.68    7/15/2030(5)              
   135    45    413.68    7/15/2030(5)              
   255    85    433.78    10/2/2030(5)              
   758    379    367.79    3/31/2031(6)              
   767    1,535    393.14    3/10/2032(6)              
   0    8,220    300.16    3/10/2033(6)              
                         129(7)   53,178 
                         35(7)   14,428 
                         24(17)   9,894 
                  193(8)   79,560        
                  848(9)   349,571        
                  2,499(10)   1,030,163        
                         285(11)   117,486 
                         636(12)   262,178 
                         2,499(13)   1,030,163 

Arthur P. D’Elia

   1,190    0    275.35    7/10/2029(5)              
   1,545    515    413.68    7/15/2030(5)              
   794    397    367.79    3/31/2031(6)              
   767    1,535    393.14    3/10/2032(6)              
   0    8,220    300.16    3/10/2033(6)              
                         134(7)   55,239 
                  202(8)   83,270        
                  848(9)   349,571        
                  2,499(10)   1,030,163        
                         298(11)   122,845 
                         636(12)   262,178 
                         2,499(13)   1,030,163 

 

 

(1)

Awards of RSUs as described under “Compensation Discussion and Analysis – Long-term Incentive Compensation” above. RSUs vest equally over three years in separate vesting tranches. In order for each tranche to vest the named executive officer must generally be an employee of the Company on such vesting date, except as described under “—Potential Post-Employment Payments to Named Executive Officers” below.

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    55


Executive Compensation Tables (continued)

LOGO

(2)

Value based on the closing price of the Company’s common stock on the NYSE on December 30, 2022,29, 2023, the last business day of fiscal 20222023 ($346.40)412.23).

(3)

Awards of performance shares or PSUs, as indicated, as described under “Compensation Discussion and Analysis – Long-term Incentive Compensation” above. Awards are shown assuming the performance conditions are satisfied at target.

DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT 53


 Executive Compensation Tables (continued)

LOGO

(4)

Value based on the closing price of the Company’s common stock on the NYSE on December 30, 2022,29, 2023, the last business day of fiscal 20222023 ($346.40)412.23).

(5)

Option awards granted ten years prior to the option expiration date that vest in equal annual installments over four years beginning on the first anniversary of the grant date. Vesting is accelerated upon certain employment terminations and covered transactions, as described under “—Potential Post-Employment Payments to Named Executive Officers” below.

(6)

Option awards granted ten years prior to the option expiration date that vest in equal annual installments over three years beginning on the first anniversary of the grant date. Vesting is accelerated upon certain employment terminations and covered transactions, as described under “—Potential Post-Employment Payments to Named Executive Officers” below.

(7)

Represents final tranche of performance shares granted in July 20192020 that are eligible to vest on July 10, 2023,15, 2024, subject to the achievement of applicable performance conditions and generally subject to the named executive officer’s continued employment through such vesting date, except as described under “—Potential Post-Employment Payments to Named Executive Officers” below.

(8)

Represents final two tranchestranche of performance shares grantedRSUs awarded in July 2020March 2021 that are eligible to vest in two equal installments on each of July 15, 2023 and July 15,March 31, 2024, subject to the achievement of applicable performance conditions and generally subject to the named executive officer’s continued employment through such vesting date, except as described under “—Potential Post-Employment Payments to Named Executive Officers” below.

(9)

Represents final two tranches of RSUs awarded in March 20212022 that are eligible to vest in two equal installments on each of March 31, 202310, 2024 and March 31, 2024,10, 2025, generally subject to the named executive officer’s continued employment through such vesting date, except as described under “—Potential Post-Employment Payments to Named Executive Officers” below.

(10)

Represents RSUs awarded in March 20222023 that are eligible to vest in three equal installments on each of March 10, 2023,2024, March 10, 20242025 and March 10, 2025,2026, generally subject to the named executive officer’s continued employment through such vesting date, except as described under “—Potential Post-Employment Payments to Named Executive Officers” below.

(11)

Represents PSUs awarded in March 2021 (reported in this table based on the target number of shares subject to the award). Assuming applicable performance conditions based on cumulative adjusted total segment income and cumulative global retail sales, excluding foreign currency impact, are satisfied, PSUs will vest and convert to shares of common stock in or around February 2024 and are generally subject to the named executive officer’s continued employment through December 31, 2023, except as described under “—Potential Post-Employment Payments to Named Executive Officers” below. Actual payout for PSUs could range from 0% to 200% depending on performance, subject to a relative TSR modifier, which can increase or decrease the total number of shares earned by 15% based on the Company’s TSR relative to the TSR of the constituents of the S&P 500 Index.2021. The final payout will be determinedof 98.5% for these PSUs awarded in March 2021 was certified by the Compensation Committee in January 2024 as described further in “Compensation Discussion and may be greater or less thanAnalysis—Components of Total Direct Compensation—Payout for PSUs for Performance Period Ending in 2023” above and amounts reported in this table represent the amount shown.actual number of PSUs earned by the named executive officers following such certification.

(12)

Represents PSUs awarded in March 2022 as described under “Compensation Discussion and Analysis – Long-term Incentive Compensation” above (reported in this table based on the target number of shares subject to the award). Assuming applicable performance conditions based on cumulative adjusted total segment income and cumulative global retail sales, excluding foreign currency impact, are satisfied, PSUs will vest and convert to shares of common stock in or around March 2025 and are generally subject to the named executive officer’s continued employment through March 10, 2025, except as described under “—Potential Post-Employment Payments to Named Executive Officers” below. Actual payout for PSUs could range from 0% to 200% depending on performance, subject to a relative TSR modifier, which can increase or decrease the total number of shares earned by 15% based on the Company’s TSR relative to the TSR of the constituents of the S&P 500 Index. The final payout will be determined by the Compensation Committee and may be greater or less than the amount shown.

(13)

Represents PSUs awarded in March 2023, as described under “Compensation Discussion and Analysis – Long-term Incentive Compensation” above (reported in this table based on the target number of shares subject to the award). Assuming applicable performance conditions based on adjusted total segment income growth and global retail sales, excluding foreign currency impact growth, are satisfied, PSUs will vest and convert to shares of common stock in or around March 2026 and are generally subject to the named executive officer’s continued employment through March 10, 2026, except as described under “—Potential Post-Employment Payments to Named Executive Officers” below. Actual payout for PSUs could range from 0% to 200% depending on performance, subject to a relative TSR modifier, which can increase or decrease the total number of shares earned by 25% based on the Company’s TSR relative to the TSR of the constituents of the S&P Composite 1500 Restaurants Sub-Index. The final payout will be determined by the Compensation Committee and may be greater or less than the amount shown.

(14)

Represents final two tranches of RSUs awarded in April 2022 that are eligible to vest in threetwo equal installments on each of April 1, 2023, April 1, 2024 and April 1, 2025, generally subject to the named executive officer’s continued employment through such vesting date, except as described under “—Potential Post-Employment Payments to Named Executive Officers” below.

(14)(15)

Represents final tranche of a special, sign-on equity award of RSUs awarded in April 2022 that is eligible to vest in two equal installments on each of April 1, 2023 and April 1, 2024, generally subject to the named executive officer’s continued employment through such vesting date, except as described under “—Potential Post-Employment Payments to Named Executive Officers” below.

(15)(16)

Represents PSUs awarded in April 2022 as described under “Compensation Discussion and Analysis – Long-term Incentive Compensation” above (reported in this table based on the target number of shares subject to the award). Assuming applicable performance conditions based on cumulative adjusted total segment income and cumulative global retail sales, excluding foreign currency impact, are satisfied, PSUs will vest and convert to shares of common stock in or around March 2025 and are generally subject to the named executive officer’s continued employment through March 10, 2025, except as described under “—Potential Post-Employment Payments to Named Executive Officers” below. Actual payout for PSUs could range from 0% to 200% depending on performance, subject to a relative TSR modifier, which can increase or decrease the total number of shares earned by 15% based on the Company’s TSR relative to the TSR of the constituents of the S&P 500 Index. The final payout will be determined by the Compensation Committee and may be greater or less than the amount shown.

(16)(17)

Represents final two tranchestranche of performance shares awarded in October 2020 that are eligible to vest in two equal installments on each of October 2, 2023 and October 2, 2024, generally subject to the named executive officer’s continued employment through such vesting date, except as described under “—Potential Post-Employment Payments to Named Executive Officers” below.

 

 

 

5654DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT


 

Executive Compensation Tables (continued)

 

 LOGO

 

Option Exercises and Stock Vested

The following table provides information relating to options exercised and stock vested for each of the named executive officers during 2022:2023; no options were exercised by our named executive officers during 2023:

 

  Option Awards   Stock Awards   Option Awards   Stock Awards 
Name  

Number of Shares

Acquired on Exercise

(#)

   

Value Realized

on Exercise

($)(1)

   

Number of Shares

Acquired on Vesting

(#)

   

Value Realized

on Vesting

($)(2)

   

Number of Shares

Acquired on Exercise

(#)

   

Value Realized

on Exercise

($)(1)

   

Number of Shares

Acquired on Vesting

(#)

   

Value Realized

on Vesting

($)(2)

 

Russell J. Weiner

           14,184    5,817,485            3,123   $1,061,313 

Sandeep Reddy

                           3,541   $1,193,423 

Joseph H. Jordan

           918    374,524            1,324   $440,733 

Kelly E. Garcia

           757    310,209            1,035   $352,982 

Arthur P. D’Elia

           1,039    439,164            972   $328,074 

Richard E. Allison, Jr.

   8,000    2,702,487    21,524    8,832,145 

 

 

(1)

Equals the closing price of the Company’s common stock on the NYSE on the exercise date minus the option exercise price multiplied by the number of shares acquired on exercise.

(2)

Equals the closing price of the Company’s common stock on the NYSE on the vesting date multiplied by the number of shares vesting, plus any accrued cash dividends paid on such vesting date in respect of such shares.

Non-Qualified Deferred Compensation

A select group of management or highly compensated employees, as defined by the Employee Retirement Income and Security Act of 1974, as amended, as well as the Company’s directors, are eligible to participate in the Domino’s Pizza Deferred Compensation Plan, or the DCP. The purpose of the DCP is to provide supplemental retirement income and to permit eligible employees to defer receipt of compensation pursuant to the terms of the plan.

Participants are able to defer a portion of eligible compensation (including annual base salary and the annual performance incentive or, in the case of our directors, annual retainers and/or annual equity awards). Participants elect a specific date or event (such as termination of employment or Board service) for payment of deferred compensation and the form of the payment, either lump sum or installments. Participants are able to notionally invest their deferrals in mutual funds selected by them from a lineup of options. The options available under the DCP for the fiscal year ended January 1,December 31, 2023 were as follows:

American Funds EuroPacific Growth Fund

BNY Mellon MidCap Index Fund

Boston Trust Small Cap Fund

Credit Suisse Commodity Return Strategy Fund

Dodge and Cox International Stock Fund

Fidelity 500 Index Fund

Fidelity Government Money Market Fund

Fidelity Puritan Fund

Harding Loevner Emerging Markets Portfolio

Invesco Comstock Fund

MainStay Large Cap Growth Fund

PIMCO All Asset Fund

PIMCO Total Return Fund

Vanguard Inflation-Protected Securities Fund

Vanguard Real Estate Index Fund

Vanguard Total Bond Market Index Fund

Vanguard Total International Stock Index Fund

There are no

DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT 55


 Executive Compensation Tables (continued)

LOGO

The following table provides information on the DCP for our named executive officers whoas of December 31, 2023:

Name  

Executive

Contributions

in Last Fiscal

Year

($)(1)

   

Registrant

Contributions in

Last

Fiscal Year

($)

   

Aggregate

Earnings

in Last

Fiscal Year

($)(2)

   

Aggregate

Withdrawals /

Distributions

($)

   

Aggregate

Balance at

Last Fiscal

Year-End

($)(3)

 

Russell J. Weiner

                    

Sandeep Reddy

   337,189        99,854        631,885 

Joseph H. Jordan

                    

Kelly E. Garcia

                    

Arthur P. D’Elia

                    

(1)

This entire amount is included in salary for Mr. Reddy in the Summary Compensation Table on page 49.

(2)

Reflects dividends, interest and aggregate market-based earnings on amounts deferred by plan participants.

(3)

Represents the participant’s account balance as of December 31, 2023, which includes $194,842 in compensation reported for fiscal year 2022, as adjusted for applicable changes in market value of the notional investment of such amounts.

No other named executive officers participated in or had balances under the Domino’s Pizza Deferred Compensation Plan for the fiscal year ended January 1,December 31, 2023. The balances under the DCP for our directors are listed below under “Non-Qualified Deferred Compensation of Directors.”

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    57


Executive Compensation Tables (continued)

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Potential Post-Employment Payments to Named Executive Officers

Each currently employed named executive officer is a party to an employment agreement providing for payments and benefits in connection with certain terminations of the named executive officer’s employment.

Under Mr. Weiner’s employment agreement effective as of May 1, 2022, upon an involuntary termination of employment by the Company without cause (as defined in the agreement), or if Mr. Weiner terminates his employment voluntarily for good reason (generally defined to include a material diminution of his responsibilities, duties or authority, a relocation of his office by more than 50 miles, or the failure of the Company to pay his base salary and benefits) prior to the end of the term of the agreement, he would receive an amount equal to two times his then-annual base salary. Such amount would be paid in equal installments, subject to a six-month delay to the extent required by Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”).

Under the employment agreement with Mr. Reddy, upon an involuntary termination of employment by the Company without cause (as defined in his agreement), or if Mr. Reddy terminates his employment voluntarily for good reason (generally defined as described above), he would receive an amount equal to one and one-half times his then-annual base salary. Such amount would be paid as follows: a payment equal to six times his base monthly salary made six months after termination of employment and monthly payments equal to his base monthly salary for the next twelve months.

Under the employment agreements with Messrs. Jordan, Garcia and D’Elia, upon an involuntary termination of employment by the Company without cause (as defined in the respective agreement), or if the named executive officer terminates his employment voluntarily for good reason (generally defined as described above), the named executive officer would receive an amount equal to one times his then-annual base salary. Such amount would be paid as follows: a payment equal to six times the named executive officer’s base monthly salary made six months after termination of employment and monthly payments equal to the executive’s base monthly salary for the next six months.

In the event of a termination of employment by the Company without cause or a voluntary termination of employment for good reason, each named executive officer would also be entitled to receive any earned but unpaid annual performance incentive for the fiscal year preceding his termination of employment and a prorated annual performance incentive under the AIP for the year of such termination. In addition, during the severance period, each named executive officer would be entitled to Company-paid medical insurance coverage premiums.

56 DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT


 Executive Compensation Tables (continued)

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In the event of a termination of employment by reason of a named executive officer’s death or disability, or voluntarily by the named executive officer due to retirement, the named executive officer would be entitled to receive any earned but unpaid annual performance incentive for the fiscal year preceding his termination of employment and a prorated annual performance incentive under the AIP for the year of such termination. Mr. Weiner would also be entitled to these benefits on a voluntary termination of employment without good reason. In addition, all unvested stock options fully vest upon an executive’s death and the period of exercisability is extended until the lesser of one year or the end of the original term of the options.

In the event of a qualified retirement, the named executive officers would be entitled to retain their PSUs, with such PSUs eligible to be earned to the extent performance goals are met during the applicable performance period, and to full vesting and settlement of RSUs and to full vesting of stock options. In addition, the time vesting condition applicable to all unvested performance shares would lapse and such performance shares would remain eligible to vest based on performance. For this purpose, a qualified retirement means (i) for awards granted prior to February 23, 2021, any termination of employment (other than for cause) after ten years of continuous service and attaining age 55 and (ii) for awards granted on or after February 23, 2021, any termination of employment (other than for cause) after the earlier to occur of (a) ten years of continuous service and attaining age 55 or (ii) attainment by the named executive officer of a combined age and completed years of service with the Company of at least 72 and attaining age 60. Additionally, awards granted on or after February 23, 2021 provide that named executive officers and other employees are eligible for an early retirement upon attainment by the executive of a combined age and completed years of service with the Company of at least 72 and attaining age 55. In the event of an early retirement, PSUs, RSUs and options granted on or after

58    DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT


Executive Compensation Tables (continued)

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February 23, 2021 will be subject to pro-rata service vesting based on days of service completed during the vesting period, provided a named executive officer had been continuously employed with the Company for a period of at least nine months following the date of grant. As of January 1,December 31, 2023, no named executive officers had satisfied the qualified retirement requirements. In connection with Mr. Weiner’s appointment as the Company’s Chief Executive Officer, the terms of his existing and future equity awards granted under the EIP were modified to increase the age threshold from 55 to 58 for purposes of eligibility for the retirement vesting provisions of such awards if Mr. Weiner terminates his employment with the Company without good reason. Mr. Weiner will still qualify for these retirement vesting provisions if his employment with the Company is terminated as a result of his death or disability, is terminated by the Company without cause or is terminated by Mr. Weiner for good reason at a time when he has attained at least age 55.

Automatically and immediately upon the termination of a named executive officer’s employment for any reason prior to the end of the applicable vesting period other than in the event of a qualified retirement (or death, in the case of options), all outstanding and unvested PSUs, RSUs and options will terminate and be forfeited for no consideration. In the event that a named executive officer’s employment is terminated (i) involuntarily by the Company without cause, or (ii) due to the executive’s death or disability prior to the date any vesting tranche of the performance shares becomes vested based on continued employment but after the Compensation Committee has certified that the performance vesting conditions with respect to such vesting tranche have been satisfied, the performance shares subject to such vesting tranche will vest in full.

As described above in “Compensation Discussion and Analysis—Compensation for Chief Financial Officer,” atAt the time of his hiring in April 2022, Mr. Reddy received a special, sign-on RSU grant under the EIP, consisting of an award of RSUs that will vest as toRSUs; 50% of the units vested on April 1, 2023 and the remaining 50% of the units subject to the award will vest on each of April 1, 2023 and April 1, 2024, generally subject to his continued employment through such date (the “CFO Sign-on Equity Award”).date. The CFO Sign-on Equity Awardremaining 50% of the units subject to the award will also vest in full upon a termination of Mr. Reddy’s employment (i) by the Company other than for cause, (ii) by Mr. Reddy for good reason or (iii) as a result of Mr. Reddy’s death or disability.

Pursuant to the EIP, in the event of a covered transaction (generally defined in the EIP as a merger or consolidation in which the Company is not the surviving entity, a disposition of substantially all of the Company’s common stock or assets, or a dissolution or liquidation of the Company) all unvested performance shares, stock options and RSUs will vest in full and all PSUs (i) granted with three-year cumulative performance metrics (the PSUs granted in 2021 and 2022) will vest and accelerate at the greater of target level or actual level of performance measured using the date of the covered transaction as the last day of the performance period.period and (ii) granted with three-year annual growth rate performance metrics (the PSUs granted in 2023) will vest and accelerate at target level, provided that in the event that

DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT 57


 Executive Compensation Tables (continued)

LOGO

annual achievement of any of the performance metrics had been previously certified by the Compensation Committee, that actual level of performance will be used for purposes of calculating the payout amount.

Each of the employment agreements for the named executive officers contains a two-year non-competition and non-solicitation provision. The agreements and plans include terms designed to comply with the deferred compensation provisions of Section 409A, including provisions that would delay certain termination-related benefits for six months beyond termination of employment and alternative payment provisions that could apply in connection with a change of control not described in Section 409A.

In connection with his retirement from the Company, the Company agreed to provide Mr. Allison and his spouse with continued medical coverage for the remainder of their respective lives. For financial statement accounting purposes, the Company has valued this benefit at $1,046,000, although the actual amounts provided to Mr. Allison and his spouse may differ. Mr. Allison was also entitled to the qualified retirement benefits with respect to his unvested PSUs, unvested RSUs, unvested performance shares and unvested stock options described under “Compensation Discussion and Analysis – Long-term Incentive Compensation” above. The value of the option acceleration was $1,505,082, calculated as the difference between the closing price of the Company’s common stock on the date of Mr. Allison’s retirement and the exercise price of his unvested options multiplied by the number of unvested options then held by Mr. Allison. The value of the RSU acceleration was $666,417, calculated as the closing price of the Company’s common stock on the date of Mr. Allison’s retirement multiplied by the number of unvested RSUs then held by Mr. Allison. The value that Mr. Allison will receive with respect to the satisfaction of the time-based vesting conditions applicable to his PSUs and performance shares could not be quantified as of the date of his retirement as the PSUs and the performance shares will only become earned, if at all, upon the Company’s achievement of the performance conditions described under “Compensation Discussion and Analysis – Long-term Incentive Compensation” above. As of the date of his retirement, Mr. Allison held 2,458 PSUs and 3,242 performance shares for which the time-based vesting condition was satisfied. Mr. Allison was not entitled to receive any other benefits in connection with his retirement.

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    59


Executive Compensation Tables (continued)

LOGO

The following table sets forth aggregate estimated payment obligations to each of the named executive officers currently employed by the Company assuming a termination of employment or change in control, as applicable, occurred on January 1,December 31, 2023 under the employment agreements then in effect. As of January 1,December 31, 2023, no currently-employed named executive officers were retirement eligible.

 

Name Benefit 

Termination

Without Cause

or

by Employee

for Good Reason

($)(1)

 

Voluntary

Termination

($)

 

Death

($)(2)

 

Disability

($)(3)

 

Change in

Control

($)(4)

  Benefit 

Termination

Without Cause

or

by Employee

for Good Reason

($)(1)

 

Voluntary

Termination

($)

 

Death

($)(2)

 

Disability

($)(3)

 

Change in

Control

($)(4)

 

Russell J. Weiner

 Severance Pay 1,750,000        1,312,500     Severance Pay 1,750,000        1,312,500    
 Healthcare 46,895        35,171    Healthcare 46,895        35,171    
 Target AIP Payout(5) 1,608,173  1,608,173  1,608,173  1,608,173  1,608,173 Target AIP Payout(5) 1,750,000  1,750,000  1,750,000  1,750,000  1,750,000 
 Equity Award Acceleration(6)       217,413     4,207,595 Equity Award Acceleration(6)       2,381,745     13,046,959 
  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 
 Total 3,405,068  1,608,173  1,825,586(7)  2,955,844  5,815,768 Total 3,546,895  1,750,000  4,131,745(7)  3,097,671  14,796,959 

Sandeep Reddy

 Severance Pay 1,012,500        1,012,500    

Sandeep Reddy

 Severance Pay 1,027,500        1,027,500    
 Healthcare 31,785        31,785    Healthcare 31,785        31,785    
 Target AIP Payout(5) 675,000     675,000  675,000  675,000 Target AIP Payout(5) 685,000     685,000  685,000  685,000 
 Equity Award Acceleration(6) 1,981,051     1,981,051  1,981,051  3,066,679 Equity Award Acceleration(6) 1,190,488     2,419,936  1,190,488  6,086,342 
  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 
 Total 3,700,336     2,656,051(7)  3,700,336  3,741,679 Total 2,934,773     3,104,936(7)  2,934,773  6,771,342 

Joseph H. Jordan

Joseph H. Jordan

 Severance Pay 600,000        900,000     Severance Pay 630,000        945,000    
 Healthcare 23,448        35,171    Healthcare 23,448        35,171    
 Target AIP Payout(5) 802,747     802,747  802,747  802,747 Target AIP Payout(5) 945,000     945,000  945,000  945,000 
 Equity Award Acceleration(6)       62,524     1,631,370 Equity Award Acceleration(6)       1,454,809     5,864,021 
  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 
 Total 1,426,195     865,271(7)  1,737,918  2,434,117 Total 1,598,448     2,399,809(7)  1,925,171  6,809,021 

Kelly E. Garcia

 Severance Pay 500,000        750,000    

Kelly E. Garcia

 Severance Pay 525,000        787,500    
 Healthcare 13,037        19,556    Healthcare 13,037        19,556    
 Target AIP Payout(5) 500,000     500,000  500,000  500,000 Target AIP Payout(5) 525,000     525,000  525,000  525,000 
 Equity Award Acceleration(6)       23,162     1,127,832 Equity Award Acceleration(6)       967,361     3,913,981 
  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 
 Total 1,013,037     523,162(7)  1,269,556  1,627,832 Total 1,063,037     1,492,361(7)  1,332,056  4,438,981 

Arthur P. D’Elia

 Severance Pay 500,000        750,000    

Arthur P. D’Elia

 Severance Pay 525,000        787,500    
 Healthcare 22,898        34,347    Healthcare 22,898        34,347    
 Target AIP Payout(5) 500,000     500,000  500,000  500,000 Target AIP Payout(5) 525,000     525,000  525,000  525,000 
 Equity Award Acceleration(6)       21,173     1,093,281 Equity Award Acceleration(6)       968,161     3,901,590 
  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 
 Total 1,022,898     521,173(7)  1,284,347  1,593,281 Total 1,072,898     1,493,161(7)  1,346,847  4,426,590 

 

 

(1)

Represents (i) the named executive officer’s annual base salary, multiplied by two in the case of Mr. Weiner, multiplied by one and one-half for Mr. Reddy and multiplied by one for Messrs. Jordan, Garcia and D’Elia, and(ii) the cost of Company-paid insurance coverage premiums for all named executive officers during their severance period.period and (iii) a one-time, pro-rata annual performance incentive payout under the AIP at target as described in footnote (5).

(2)

Represents (i) the cumulative value of all equity awards that would vest in the event of the named executive officer’s death, calculated as the total of the difference between the closing price of the Company’s common stock on the NYSE on December 30, 202229, 2023 ($346.40)412.23), the last business day of fiscal 2022,2023, and the exercise price multiplied by the number of options that would vest as a result of the named executive officer’s death.death and (ii) a one-time, pro-rata annual performance incentive payout under the AIP at target as described in footnote (5).

58 DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT


 Executive Compensation Tables (continued)

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(3)

Represents (i) 18 months of the named executive officer’s base salary (unreduced by disability income benefits) and, (ii) the cost of 18 months of Company-paid medical insurance coverage premiums.premiums and (iii) a one-time, pro-rata annual performance incentive payout under the AIP at target as described in footnote (5).

(4)

Represents (i) the cumulative value of the equity awards that would vest in the event of a covered transaction, as described in more detail above, calculated as the total of: (i)(a) the difference between the closing price of the Company’s common stock on the NYSE on December 30, 202229, 2023 ($346.40)412.23), the last business day of fiscal 2022,2023, and the exercise price multiplied by the number of options that would vest as a result of such covered transaction, (ii)(b) the closing price of the Company’s common stock on the NYSE on December 30, 2022,29, 2023, the last business day of fiscal 2022,

60    DOMINO’S PIZZA, INC. 2023, PROXY STATEMENT


Executive Compensation Tables (continued)

LOGO

multiplied by the number of performance shares and RSUs that would vest in such event and (iii)(c) the closing price of the Company’s common stock on the NYSE on December 30, 2022,29, 2023, the last business day of fiscal 2022,2023, multiplied by the number of PSUs that would vest and accelerate, assuming target performance for PSUs.PSUs, and (ii) a one-time, pro-rata annual performance incentive payout under the AIP at target as described in footnote (5).

(5)

Includes a one-time, pro-rata annual performance incentive payout under the AIP at target. Since termination is as of January 1,December 31, 2023, the value is equal to the target disclosed in the Estimated Future Payouts Under Non-Equity Incentive Plan Awards column under “Grants of Plan-Based Awards.” In the event of termination due to death or disability, termination without cause or by the executive for good reason (or a voluntary termination in the case of Mr. Weiner), any AIP amounts (after applicable proration) would have been paid based on actual performance.

(6)

Actual amounts that will be earned with respect to these equity awards may be different from the values included in the table. Amounts also include the value of any accumulated dividends for the CFO Sign-on Equity Award as of January 1, 2023 that would be payable with respect to such award. In the case of Mr. Reddy, represents the value of the CFOspecial, sign-on RSU grant under the EIP to Mr. Reddy in April 2022 (the “CFO Sign-on Equity AwardAward”) that would vest in the event of his termination of employment without cause or resignation for good reason or as a result of his death or disability, calculated as the closing price of the Company’s common stock on the NYSE on December 30, 2022,29, 2023, the last business day of fiscal 20222023 ($346.40)412.23), multiplied by the number of shares of RSUs subject to the CFO Sign-on Equity Award that would vest upon such termination. Amounts also include the value of any accumulated dividends for the CFO Sign-on Equity Award as of December 31, 2023 that would be payable with respect to such award.

(7)

In the event of death on January 1,December 31, 2023, the beneficiaries of each of our named executive officers would also have been entitled to a life insurance benefit equal to their base salary as of October 31, 20222023 under our group term life insurance programs. Company-paid amounts for these programs are included and described above in the Summary Compensation Table under All Other Compensation for fiscal 2022.2023.

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT6159

 


 
Executive Compensation Tables
(continued)
 
 
LOGO
 
Pay Versus Performance
As required by Item 402(v) of Regulation
S-K,
we are providing the following information about the relationship between executive compensation actually paid and certain financial performance of the Company. For further information concerning the Company’s
pay-for-performance
philosophy and how the Company’s executive compensation aligns with the Company’s performance, refer to “Compensation Discussion and Analysis.” The Compensation Committee did not consider the Compensation Actually Paid measure below in making its compensation decisions for any of the years shown below given the timing of the new required disclosure.below.
 
                    
Value of Initial Fixed
$100 Investment Based
on
(4)
:
       
Year
 
Summary
Compensation
Table Total
for Richard E.
Allison, Jr.
(1)
($)
  
Summary
Compensation
Table Total
for Russell J.
Weiner
(1)
($)
  
Compensation
Actually Paid
to Richard E.
Allison,
Jr.
(1)(2)(3)
($)
  
Compensation
Actually Paid
to Russell J.
Weiner
(1)(2)(3)
($)
  
Average
Summary
Compensation
Table Total
for
 
Non-PEO

NEOs
(1)
($)
  
Average
Compensation
Actually Paid
to
 
Non-PEO

NEOs
(1)(2)(3)
($)
  
Total
Shareholder
Return
($)
  
Peer Group
Total
Shareholder
Return
($)
  
Net Income
($ Millions)
  
Adjusted
Total
Segment
Income
($ Millions)
(5)
 
2022
  1,577,173   6,636,731   (5,565,349  (27,849  3,222,641   2,114,168   121.37   133.03   452.3   894.7 
2021
  7,138,002      18,863,088      2,669,548   4,929,996   195.37   145.93   510.5   893.1 
2020
  6,295,230      11,228,320      2,549,825   3,491,928   131.65   119.57   491.3   821.3 
                    
Value of Initial Fixed
$100 Investment Based
on
(4)
:
       
Year
 
Summary
Compensation
Table Total
for Richard E.
Allison, Jr.
(1)
($)
  
Summary
Compensation
Table Total
for Russell J.
Weiner
(1)
($)
  
Compensation
Actually Paid
to Richard E.
Allison,
Jr.
(1)(2)(3)
($)
  
Compensation
Actually Paid
to Russell J.
Weiner
(1)(2)(3)
($)
  
Average
Summary
Compensation
Table Total
for
Non-PEO

NEOs
(1)
($)
  
Average
Compensation
Actually Paid
to
Non-PEO

NEOs
(1)(2)(3)
($)
  
Total
Shareholder
Return
($)
  
Peer Group
Total
Shareholder
Return
($)
  
Net Income
($ Millions)
  
Adjusted
Total
Segment
Income
($ Millions)
(5)
 
2023
     10,135,862      14,374,311   4,181,603   5,957,664   146.45   153.95   519.1   935.8 
2022
  1,577,173   6,636,731   (5,565,349  (27,849  3,222,641   2,114,168   121.37   133.03   452.3   894.7 
2021
  7,138,002      18,863,088      2,669,548   4,929,996   195.37   145.93   510.5   893.1 
2020
  6,295,230      11,228,320      2,549,825   3,491,928   131.65   119.57   491.3   821.3 
 
 
(1)
Richard E. Allison, Jr. was our principal executive officer (PEO)(“PEO”) from July 2018 to April 30, 2022. Russell J. Weiner became our PEO on May 1, 2022. The individuals comprising the
N
on-PEO
Non-PEO
named executive officers (“NEOs”) for e
acheach year presented are listed below.
 
2020
  
2021
  
2022
  
2021
  
2022
  
2023
Stuart A. Levy
  
Russell J. Weiner
  
Sandeep Reddy
  
Russell J. Weiner
  
Sandeep Reddy
  
Sandeep Reddy
 
Russell J. Weiner
  
Joseph H. Jordan
  
Joseph H. Jordan
Russell J. Weiner
  
Joseph H. Jordan
  
Joseph H. Jordan
  
Joseph H. Jordan
 
Joseph H. Jordan
Joseph H. Jordan
  
Kevin S. Morris
  
Kelly E. Garcia
  
Kevin S. Morris
  
Kelly E. Garcia
  
Kelly E. Garcia
 
Kevin S. Morris
  
Stuart A. Levy
  
Arthur P. D’Elia
Kevin S. Morris
  
Stuart A. Levy
  
Arthur P. D’Elia
  
Arthur P. D’Elia
 
Jeffrey D. Lawrence
Jeffrey D. Lawrence
      
 
J. Kevin Vasconi
      
J. Kevin Vasconi
 
(2)
The amounts shown for Compensation Actually Paid have been calculated in accordance with Item 402(v) of Regulation
S-K
and do not reflect compensation actually earned, realized or received by the Company’s NEOs. These amounts reflect the Summary Compensation Table total with certain adjustments as described in footnote 3 below.
(3)
Compensation Actually Paid reflects the exclusions and inclusions of certain amounts for the PEOs and the
Non-PEO
NEOs as set forth below. Equity values are calculated in accordance with ASC 718. Amounts in the Exclusion of Stock Awards and Option Awards column are the totals from the Stock Awards and Option Awards columns set forth in the Summary Compensation Table. To calculate Compensation Actually Paid, the totals included in the Exclusion of Stock Awards and Option Awards column were subtracted and the totals in the Inclusion of Equity Values column were added to the Summary Compensation Table Total for the PEOs and the
Non-PEO
NEOs.
 
Year
  
Summary Compensation
Table Total for Richard E.
Allison, Jr.
($)
  
Exclusion of Stock Awards
and Option Awards for
Richard E. Allison, Jr.
($)
 
Inclusion of Equity Values
for Richard E. Allison, Jr,
($)
 
Compensation Actually
Paid to Richard E. Allison,
Jr. ($)
  
Summary Compensation
Table Total for Richard E.
Allison, Jr.
($)
  
Exclusion of Stock Awards
and Option Awards for
Richard E. Allison, Jr.
($)
 
Inclusion of Equity Values
for Richard E. Allison, Jr,
($)
 
Compensation Actually
Paid to Richard E. Allison,
Jr. ($)
2022
   
 
1,577,173
   
 
(196,857
)
 
 
(6,945,665
)
 
 
(5,565,349
)
   
 
1,577,173
    
 
(196,857
)
 
 
(6,945,665
)
 
 
(5,565,349
)
2021
   
 
7,138,002
   
 
(3,460,131
)
 
 
15,185,216
 
 
18,863,088
   
 
7,138,002
    
 
(3,460,131
)
 
 
15,185,216
  
 
18,863,088
 
2020
   
 
6,295,230
   
 
(2,401,324
)
 
 
7,334,414
 
 
11,228,320
   
 
6,295,230
    
 
(2,401,324
)
 
 
7,334,414
  
 
11,228,320
 
 
Year
  
Summary Compensation
Table Total for Russell J.
Weiner
($)
  
Exclusion of Stock Awards
and Option Awards for
Russell J. Weiner
($)
 
Inclusion of Equity Values
for Russell J. Weiner
($)
 
Compensation Actually
Paid to Russell J. Weiner
($)
Year
Year
Year
Year
  
Summary Compensation
Table Total for Russell J.
Weiner
($)
  
Exclusion of Stock Awards
and Option Awards for
Russell J. Weiner
($)
 
Inclusion of Equity Values
for Russell J. Weiner
($)
 
Compensation Actually
Paid to Russell J. Weiner
($)
2023
   
 
10,135,862
    
 
(7,070,798
)
 
 
11,309,247
  
 
14,374,311
 
2022
   
 
6,636,731
   
 
(4,553,658
)
 
 
(2,110,922
)
 
 
(27,849
)
   
 
6,636,731
    
 
(4,553,658
)
 
 
(2,110,922
)
 
 
(27,849
)
 
Year
  
Average Summary
Compensation Table Total
for
Non-PEO
NEOs
($)
  
Average Exclusion of
Stock Awards and Option
Awards for Non-PEO NEOs
($)
 
Average Inclusion of
Equity Values for Non-PEO

NEOs
($)
 
Average Compensation
Actually Paid to Non-PEO

NEOs
($)
2022
   
 
3,222,641
   
 
(1,904,195
)
 
 
795,722
 
 
2,114,168
2021
   
 
2,669,548
   
 
(1,136,067
)
 
 
3,396,515
 
 
4,929,996
2020
   
 
2,549,825
   
 
(1,040,910
)
 
 
1,983,013
 
 
3,491,928
 
6260
DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT

 
Executive Compensation Tables
(continued)
 
 
LOGO
 
Year
  
Average Summary
Compensation Table Total
for
Non-PEO
NEOs
($)
  
Average Exclusion of
Stock Awards and Option
Awards for Non-PEO NEOs
($)
 
Average Inclusion of
Equity Values for Non-PEO

NEOs
($)
 
Average Compensation
Actually Paid to Non-PEO

NEOs
($)
2023
   
 
4,181,603
    
 
(2,715,339
)
  
 
4,491,400
   
 
5,957,664
 
2022
   
 
3,222,641
    
 
(1,904,195
)
  
 
795,722
   
 
2,114,168
 
2021
   
 
2,669,548
    
 
(1,136,067
)
  
 
3,396,515
   
 
4,929,996
 
2020
   
 
2,549,825
    
 
(1,040,910
)
  
 
1,983,013
   
 
3,491,928
 
The amounts in the Inclusion of Equity Values in the tables above are derived from the amounts set forth in the following tables:
 
Year
  
Year-End Fair

Value of Equity
Awards
Granted During
Year That
Remained
Unvested as of
Last Day of
Year for
Richard E.
Allison, Jr.
($)
  
Change in Fair
Value from Last
Day of Prior
Year to Last
Day of Year of
Unvested
Equity Awards
for Richard E.
Allison, Jr.
($)
  
Change in Fair
Value from Last
Day of Prior
Year to Vesting
Date of
Unvested
Equity Awards
that Vested
During Year for
Richard E.
Allison, Jr.
($)
  
Fair Value at
Last Day of
Prior Year of
Equity Awards
Forfeited
During Year for
Richard E.
Allison, Jr.
($)
  
Total -
Inclusion of
Equity Values
for Richard E.
Allison, Jr.
($)
  
Year-End Fair

Value of Equity
Awards
Granted During
Year That
Remained
Unvested as of
Last Day of
Year for
Richard E.
Allison, Jr.
($)
  
Change in Fair
Value from Last
Day of Prior
Year to Last
Day of Year of
Unvested
Equity Awards
for Richard E.
Allison, Jr.
($)
  
Change in Fair
Value from Last
Day of Prior
Year to Vesting
Date of
Unvested
Equity Awards
that Vested
During Year for
Richard E.
Allison, Jr.
($)
  
Fair Value at
Last Day of
Prior Year of
Equity Awards
Forfeited
During Year for
Richard E.
Allison, Jr.
($)
  
Total -
Inclusion of
Equity Values
for Richard E.
Allison, Jr.
($)
2022
   
 
   
 
(692,267
)
   
 
(6,253,398
)
   
 
   
 
(6,945,665
)
   
 
    
 
(692,267
)
   
 
(6,253,398
)
   
 
    
 
(6,945,665
)
2021
   
 
5,462,058
   
 
7,624,249
   
 
2,098,909
   
 
   
 
15,185,216
   
 
5,462,058
    
 
7,624,249
    
 
2,098,909
    
 
    
 
15,185,216
 
2020
   
 
1,989,134
   
 
3,628,559
   
 
1,716,721
   
 
   
 
7,334,414
   
 
1,989,134
    
 
3,628,559
    
 
1,716,721
    
 
    
 
7,334,414
 
 
Year
  
Year-End
Fair
Value of Equity
Awards
Granted During
Year That
Remained
Unvested as of
Last Day of
Year for Russell
J. Weiner
($)
  
Change in Fair
Value from Last
Day of Prior
Year to Last
Day of Year of
Unvested
Equity Awards
for Russell J.
Weiner
($)
  
Change in Fair
Value from Last
Day of Prior
Year to Vesting
Date of
Unvested
Equity Awards
that Vested
During Year for
Russell J.
Weiner
($)
  
Fair Value at
Last Day of
Prior Year of
Equity Awards
Forfeited
During Year for
Russell J.
Weiner
($)
  
Total -
Inclusion of
Equity Values
for Russell J.
Weiner
($)
Year
Year
Year
Year
  
Year-End Fair

Value of Equity
Awards
Granted During
Year That
Remained
Unvested as of
Last Day of
Year for Russell
J. Weiner
($)
  
Change in Fair
Value from Last
Day of Prior
Year to Last
Day of Year of
Unvested
Equity Awards
for Russell J.
Weiner
($)
  
Change in Fair
Value from Last
Day of Prior
Year to Vesting
Date of
Unvested
Equity Awards
that Vested
During Year for
Russell J.
Weiner
($)
  
Fair Value at
Last Day of
Prior Year of
Equity Awards
Forfeited
During Year for
Russell J.
Weiner
($)
  
Total -
Inclusion of
Equity Values
for Russell J.
Weiner
($)
2023
   
 
10,957,111
    
 
627,305
    
 
(275,169
)
   
 
    
 
11,309,247
 
2022
   
 
3,584,162
   
 
(2,645,641
)
   
 
(3,049,443
)
   
 
   
 
(2,110,922
)
   
 
3,584,162
    
 
(2,645,641
)
   
 
(3,049,443
)
   
 
    
 
(2,110,922
)
 
Year
  
Average Year-
End Fair Value
of Equity
Awards
Granted During
Year That
Remained
Unvested as of
Last Day of
Year for Non-
PEO NEOs
($)
  
Average
Change in Fair
Value from Last
Day of Prior
Year to Last
Day of Year of
Unvested
Equity Awards
for
Non-PEO

NEOs
($)
  
Average
Change in Fair
Value from Last
Day of Prior
Year to Vesting
Date of
Unvested
Equity Awards
that Vested
During Year for
Non-PEO
NEOs
($)
  
Average Fair
Value at Last
Day of Prior
Year of Equity
Awards
Forfeited
During Year for
Non-PEO
NEOs
($)
  
Total - Average

Inclusion of
Equity Values
for
Non-PEO

NEOs
($)
Year
Year
Year
Year
  
Average Year-

End Fair Value
of Equity
Awards
Granted During
Year That
Remained
Unvested as of
Last Day of
Year for Non-

PEO NEOs
($)
  
Average
Change in Fair
Value from Last
Day of Prior
Year to Last
Day of Year of
Unvested
Equity Awards
for
Non-PEO

NEOs
($)
  
Average
Change in Fair
Value from Last
Day of Prior
Year to Vesting
Date of
Unvested
Equity Awards
that Vested
During Year for
Non-PEO
NEOs
($)
  
Average Fair
Value at Last
Day of Prior
Year of Equity
Awards
Forfeited
During Year for
Non-PEO
NEOs
($)
  
Total - Average

Inclusion of
Equity Values
for
Non-PEO

NEOs
($)
2023
   
 
4,285,464
    
 
277,603
    
 
(71,667
)
   
 
    
 
4,491,400
 
2022
   
 
1,559,241
   
 
(573,013
)
   
 
(190,506
)
   
 
   
 
795,722
   
 
1,559,241
    
 
(573,013
)
   
 
(190,506
)
   
 
    
 
795,722
 
2021
   
 
1,380,101
   
 
1,658,217
   
 
590,885
   
 
(232,688
)
   
 
3,396,515
   
 
1,380,101
    
 
1,658,217
    
 
590,885
    
 
(232,688
)
   
 
3,396,515
 
2020
   
 
493,333
   
 
817,596
   
 
672,084
   
 
   
 
1,983,013
   
 
493,333
    
 
817,596
    
 
672,084
    
 
    
 
1,983,013
 
 
(4)
The Peer Group TSR set forth in this table utilizes the S&P Composite 1500 Restaurants
Sub-Index
(“Index”), which we also utilize in the stock performance graph required by Item 201(e) of Regulation
S-K
included in the 20222023
10-K
.10-K.
The comparison assumes $100 was invested for the period starting December 31, 2019, through the end of the listed year in the Company’s common stock and in the Index, respectively. TSR is calculated by dividing the sum of the cumulative amount of dividends for the measurement period, assuming dividend reinvestment, and the difference between the Company’s share price at the end and the beginning of the measurement period by the Company’s share price at the beginning of the measurement period. Historical stock performance is not necessarily indicative of future stock performance.
(5)
We determined Adjusted Total Segment Income to be the most important financial performance measure used to link Company performance to Compensation Actually Paid to our PEOs and
Non-PEO
NEOs in fiscal 2022.2023. Adjusted Total Segment Income is measured as Segment Income as defined by the Company under ASC 280 with certain adjustments as described under “Compensation Discussion and Analysis—Components of Total Direct Compensation—Annual Performance Incentives.” This performance measure may not have been the most important financial performance measure for fiscal years 2021 and 2020 and we may determine a different financial performance measure to be the most important financial performance measure in future years.
DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT
 61

Executive Compensation Tables
(continued)
LOGO
Tabular List of Most Important Financial Performance Measures
A
sAs described in greater detail in “Compensation Discussion and Analysis,” the Company’s executive compensation program reflects
a
commitment to paying for performance and a competitive
pay-for-performance
package that is designed to incentivize and retain executives. The metrics that the Company uses for both our long-term incentive compensation program under the EIP and annual performance cash incentives under the AIP are selected based on an objective of incentivizing our named executive officers to achieve the Company’s short- and longer-term financial and
DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT
    63

Table of Contents
Executive Compensation Tables
(continued)

strategic goals and create long-term, sustainable value for our shareholders. Our focus on performance-based compensation rewards strong Company financial and operating performance and aligns the interests of our named executive officers with those of our shareholders.
The following list presents the most i
mportantimportant financial performance measure
smeasures used by the Company to link executive compensation actually paid to the Company’s named executive officers in fiscal 20222023 to the Company’s performance. The measures in this list are not ranked.
 
Adjusted Total Segment Income
 
Global retail sales, excluding foreign currency impact
 
Relative total shareholder return
(the (the Company’s TSR as compared to the S&P 500 Index Composite 1500 Restaurants
Sub-Index
comparison group established by the Compensation Committee)
Analysis of the Information Presented in the Pay Versus Performance Table
As described in more detail in “Compensation Discussion and Analysis,” the Company’s executive compensation program reflects a commitment to paying for performance and a competitive
pay-for-performance
package that is designed to incentivize and retain executives. While the Company utilizes several performance measures to align executive compensation with Company performance, all of those Company measures are not presented in the Pay Versus Performance table. Moreover, the Company generally seeks to incentivize long-term performance, and therefore does not specifically align the Company’s performance measures with compensation that is actually paid (as computed in accordance with Item 402(v) of Regulation
S-K)
for a particular year. In accordance with Item 402(v) of Regulation
S-K,
the Company is providing the following descriptions ofgraphs showing the relationships between information presented in the Pay Versus Performance table.
Compensation Actually Paid and Cumulative TSR
The amount of compensation actually paid to Messrs. Allison and Weiner during their respective tenures as the Company’s Chief Executive Officer and the average amount of compensation actually paid to the Company’s named executive officers as a group (excluding Messrs. Allison and Weiner) is generally aligned with the Company’s cumulative TSR over the three years presented in the table; the amount of compensation actually paid to each of Mr. Allison and the Company’s named executive officers as a group (excluding Mr. Allison) in 2020 and 2021 is higher than the amount of compensation actually paid to Messrs. Weiner and Allison and the Company’s named executive officers as a group (excluding Messrs. Allison and Weiner) in 2022, which directionally aligns with the Company’s TSR over each respective year. Compensation actually paid is aligned with the Company’s cumulative TSR over the period presented because a significant portion of the compensation actually paid to Messrs. Allison and Weiner and to the other named executive officers is comprised of equity awards that are directly tied to Company stock price performance. As described in more detail in “Compensation Discussion and Analysis,” the Company targets that approximately 54% of the value of total compensation awarded to the named executive officers currently employed with the Company is to be comprised of long-term incentive compensation awards, including PSUs, RSUs and stock options.
Compensation Actually Paid and Net Income
The amount of compensation actually paid to Messrs. Allison and Weiner during their respective tenures as the Company’s Chief Executive Officer and the average amount of compensation actually paid to the Company’s named executive officers as a group (excluding Messrs. Allison and Weiner) is generally aligned with the Company’s net income over the three years presented in the table; the amount of compensation actually paid to each of Mr. Allison and the Company’s named executive officers as a group (excluding Mr. Allison) in 2020 and 2021 is higher than the amount of compensation actually paid to Messrs. Weiner and Allison and the Company’s named executive officers as a group (excluding Messrs. Allison and Weiner) in 2022, which directionally aligns with the Company’s net income in each respective year. While the Company does not use net income as a performance measure in the overall executive compensation program, Total Segment Income, which the Company does use when setting goals for the Company’s short-term incentive compensation program and for the PSUs that are awarded to the named executive officers, is the primary driver of the measure of net income.
 
 
 
6462
DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT

Table of Contents
 
Executive Compensation Tables
(continued)
 
 
LOGO
 
Compensation Actually Paid and Cumulative TSR
The following chart sets forth the relationship between Compensation Actually Paid to our PEOs, the average of Compensation Actually Paid to our other NEOs, and the Company’s cumulative TSR over the four most recently completed fiscal years and also compares our cumulative TSR over the four most recently completed fiscal years to that of the S&P Composite 1500 Restaurant
Sub-Index
TSR over the same period.
LOGO
Compensation Actually Paid and Net Income
The following chart sets forth the relationship between Compensation Actually
Paid
to our
PEOs
, the average of Compensation Actually Paid to our other NEOs, and our net income during the four most recently completed fiscal years.
LOGO
DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT
 63

Table of Contents
Executive Compensation Tables
(continued)
LOGO
Compensation Actually Paid and Adjusted Total Segment Income
The amount of compensation actually paidfollowing chart sets forth the relationship between Compensation Actually Paid to Messrs. Allison and Weiner during their respective tenures as the Company’s Chief Executive Officer andour PEO, the average amount of compensation actually paidCompensation Actually Paid to the Company’s named executive officers as a group (excluding Messrs. Allisonour other NEOs, and Weiner) is generally aligned w
ith the year-over-year g
rowth of the Company’sour Adjusted Total Segment Income overduring the three years presented in the table; the amount of compensation actually paid to each of Mr. Allison and the Company’s named executive officers as a group (excluding Mr. Allison) in 2020 and 2021 is higher than the amount of compensation actually paid to Messrs. Weiner and Allison and the Company’s named executive officers as a group (excluding Messrs. Allison and Weiner) in 2022, which
directionally aligns with the year-over-year growth
of the Company’s Adjusted Total Segment Income in each respective year. The Company utilizes Total Segment Income when setting goals under the Company’s short-term incentive compensation program, as well as when setting goals for the PSUs that are awarded to the named executive officers. The amounts earned under both programs are based, in part, on the Company’s Adjusted Total Segment Income for the respective performance period. Adjusted Total Segment Income is measured as Segment Income as defined by the Company under ASC 280, with certain adjustments as described under “Compensation Discussion and Analysis—Components of Total Direct Compensation—Annual Performance Incentives.” While the Company uses several financial and
non-financial
performance measures for the purpose of evaluating performance for the Company’s compensation programs, the Company has determined that Adjusted Total Segment Income is the financial performance measure that, in the Company’s assessment, represents thefour most important performance measure used by the Company to link compensation actually paid to the company’s named executive officers inrecently completed fiscal 2022 to Company performance. As described in more detail in “Compensation Discussion and Analysis,” the Company targets that approximately 14% of the value of total compensation awarded to the named executive officers currently employed with the Company is to be comprised of PSUs under the EIP and approximately 25% of the value of total compensation awarded to the named executive officers currently employed with the Company consists of annual performance cash incentives under the AIP.years.
LOGO
Cumulative TSR of the Company and Cumulative TSR of the Peer Group
The Company’s cumulative TSR over the three-yearfour-year period presented in the table was approximately 21.8%46.5%, while the cumulative TSR of the peer group presented for this purpose, the S&P Composite 1500 Restaurants
Sub-Index,
was approximately 33.0%54.0% over the three years presented in the table.this same period. The Company’s cumulative TSR outperformed the S&P Composite 1500 Restaurants
Sub-Index
during the first two yearsfinal year presented in the table, representing the Company’s outperformance as compared to the companies comprising the S&P Composite 1500 Restaurants
Sub-Index
comparison group before ultimately underperformingin 2023 and corresponded with a significant return to growth and a return to the S&P Composite 1500 Restaurants
Sub-Index
in the third year presented in the table. The Company’s TSR performance for the immediately preceding two years far exceeded the performance of the S&P Composite 1500 Restaurants
Sub-Index,
and when the five-year TSR is compared to that of the S&P Composite 1500 Restaurants
Sub-Index,
the Company has significantly outperformed the comparison group.historical strong operating performance. For more information regarding the Company’s performance and the companies that the Compensation Committee considers when determining compensation, refer to “Compensation Discussion and Analysis.”
 
 
64 
DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT
    65

Table of Contents
 
Executive Compensation Tables
(continued)
 
 
LOGO
CEO Pay Ratio
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the SEC requires annual disclosure of the ratio of the median annual total compensation of all of our employees to the annual total compensation of our CEO.
To identify the median employee, we used 20222023 total cash compensation, which includes annual base salaries or base wages plus annual bonuses, if any, as reported on each employee’s
W-2,
Box 1, as our consistently applied compensation measure. We used total cash compensation as our consistently applied compensation measure because we do not widely distribute annual equity awards to employees (less than 2% of our employees received annual equity awards). We then measured total cash compensation for all individuals who were employed by us on December 1, 2022,2023, excluding (i) our CEO and (ii) all team members located in countries outside of the United States, pursuant to the de minimis exemption under the pay ratio rules. A total of 260273 team members were so excluded and are detailed by each
non-U.S.
jurisdiction below:
 
Brazil:       1
  
Hong Kong:    6
Netherlands:       14
Canada:        215
India:                 1
3
  Singapore    815
Dubai:             10
Canada:     228
  
Mexico:         2
1
  United Kingdom:    32
Dubai:      11Netherlands:    12
Except as described above, we included all employees, whether employed on a full-time, part-time, seasonal or temporary basis. We did not make any assumptions, adjustments, or estimates with respect to total cash compensation. We did, however, annualize the compensation used for employees who were not employed by us for all of 20222023 by taking an employee’s compensation for the number of
bi-weekly
pay periods for which they were employed and annualizing such amount for the full year of 26 pay periods, which is consistent with the number of
bi-weekly
pay periods our CEO received in 2022. 2023.
As of December 1, 2022,2023, we had 10,10110,601 U.S.-based full-time, part-time, seasonal and temporary employees. As of this same date, including our team members located in countries outside the United States, we had 10,36110,874 full-time, part-time, seasonal and temporary employees.
As we had an even number of employees excluding our CEO, the methodology resulted in the identification of two median employees. We selected the employee whom we believed had annual total compensation that was more representative of our employee population and general compensation practices. Based on total cash compensation, our median employee was identified as a part-time delivery driver who worked under 30approximately 33 hours per week and was paid on an hourly basis. The median employee’s annual total compensation was calculated using the same methodology we use for our named executive officers as set forth in the Summary Compensation Table for 20222023 earlier in this Proxy Statement.
Mr. Weiner’s annual total compensation for the 20222023 fiscal year was $6,636,731,$10,135,862, as reflected in the Summary Compensation Table for 20222023 above. Our median employee’s annual total compensation for the 20222023 fiscal year, as determined in the same manner as Mr. Weiner’s, was $31,638.$31,481. As a result, we estimate that Mr. Weiner’s annual total compensation was approximately 210322 times that of our median employee.
If we adjusted Mr. Weiner’s annual base salary as if he served as our CEO for all of fiscal year 2022 (to $875,000), and further adjusted his AIP payout value to reflect a payout as if he were CEO for all of fiscal year 2022 (to $871,500), his adjusted annual total compensation for 2022, with no additional changes to the other amounts included in the Summary Compensation Table for 2022 above, would be $6,741,976. After giving effect to these adjustments, Mr. Weiner’s adjusted annual total compensation for 2022 would be approximately 213 times that of our median employee.
This pay ratio is a reasonable estimate calculated in a manner consistent with Item 402(u) of Regulation
S-K.
Because the SEC rules for identifying the median compensated employee and calculating the pay ratio based on that employee’s annual total compensation allow companies to adopt a variety of methodologies, to apply certain exclusions, and to make reasonable estimates and assumptions that reflect their compensation practices, the pay ratio reported by other companies may not be comparable to the pay ratio reported above. The Compensation Committee did not consider the pay ratio in making its compensation decisions for fiscal 2022.
2023.
 
66    
DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT
 65


 

Proposal Three: Advisory Vote to Approve Named Executive

 Officer Compensation

 

 LOGO

 

At our 20222023 annual meeting of shareholders, the Company provided shareholders with the opportunity to cast an advisory vote regarding the compensation of our named executive officers as disclosed for fiscal year 20212022 in our 20222023 Proxy Statement. This non-binding advisory vote is commonly referred to as “say-on-pay.” At our 20222023 annual meeting, our shareholders approved the proposal with 92.79%92.36% of the shares voted in favor of the say-on-pay proposal.

At the 20172023 annual meeting of shareholders, the Company held an advisory vote on the frequency of future say-on-pay votes. Our shareholders voted in favor of an annual say-on-pay vote and the Company has elected to follow such recommendation. Accordingly, this year we are again asking our shareholders to vote FOR the approval of the compensation we pay to our named executive officers as disclosed in this Proxy Statement. In accordance with Rule 14a-21(b) of the Exchange Act, shareholders are being asked to vote again on how frequently we should hold future say-on-pay votes under Proposal Four of this Proxy Statement.

The objectives of our executive compensation program, along with the compensation paid to our named executive officers and the rationale for such compensation, are set forth in the Compensation Discussion and Analysis and the related tables and narrative disclosures in this Proxy Statement.

 

 

The Board of Directors, as required pursuant to Section 14A of the Exchange Act, is asking shareholders to cast a non-binding, advisory vote FOR the following resolution:

“RESOLVED, that the compensation paid to the Company’s named executive officers, as disclosed pursuant to Item 402 of Regulation S-K, including the Compensation Discussion and Analysis, compensation tables and any related material contained in this Proxy Statement, is hereby APPROVED.”

As we described in the Compensation Discussion and Analysis, our executive compensation program embodies a pay-for-performance philosophy that supports the Company’s business strategy, and aligns the interests of our executives with our shareholders. In approvingshareholders and promotes good governance.

We believe that our executive compensation decisions for fiscal 2022 with respectprogram links pay to our named executive officers,performance and reflects best practices in governance as follows:

Demonstrating the emphasis that the Compensation Committee considered, among other factors,places on the financial performanceperformance-based components of total direct compensation, in fiscal 2023 approximately 91% of the target total direct compensation for our CEO, and an average of approximately 85% of all other named executive officers’ target total direct compensation, was variable and tied to Company in 2021 consideringfinancial and/or stock price performance.

In 2023, the ongoing challenging and uncertain operating environment posed by COVID-19, which significantly impactedrelative target mix of PSUs granted to our business plan and goals. While the Company’s financial performance in fiscal 2022 ultimately fell short of its plan, as described above, resulting in a payout of annual incentive paymentsCEO under the AIP at below-target levels,EIP was increased to 50% of target grant date value to demonstrate additional emphasis on the Company maintained strong levels of profitability across the business in fiscal 2022, especially when compared against the Company’s financiallong-term performance in fiscal 2019 prior to the onsetincentive portion of the COVID-19 pandemic,EIP.

Review of our compensation plans, policies, and significant compensation practices on an annual basis.

Evaluation of the Company’s namedlevel of risk in incentive compensation design on an annual basis and maintenance of a number of mechanisms to mitigate the chance of our incentive compensation programs encouraging excessive risk taking, including meaningful stock ownership guidelines, a cap on maximum annual performance incentives, maintaining a recoupment policy compliant with SEC and NYSE rules and anti-pledging and anti-hedging provisions contained in our Insider Trading Policy.

In reviewing and assessing our executive officers contributed greatly to these achievements. Thecompensation program, the Compensation Committee further consideredconsiders shareholder feedback, including feedback received following the transition of our existing long-term incentive compensation program in 2021, which was comprised of performance shares and stock options, to a program comprised of PSUs, RSUs and stock options as described in the Compensation Discussion and Analysis. The Company routinely reviews its compensation programs and engages in discussions with certain major shareholders to solicit their feedback regarding our executive compensation program. The Company has made changes in prior years based upon feedback from this shareholder outreach and plans to continue these engagement efforts in future years.

For these reasons, the Board is asking shareholders to again support this say-on-pay proposal. Although the vote we are asking you to cast is non-binding, the Compensation Committee and the Board value the views of our shareholders and will continue to consider the outcome of the vote when determining future compensation arrangements for our named executive officers.officers and in continuing to align the Company’s executive compensation program with the interests of the Company and its shareholders.

 

 

Our Board of Directors Unanimously Recommends a Vote FOR this Proposal

 

   

 

 

 

 

DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT    67


Proposal Four: Advisory Vote on Frequency of Future Named Executive Officer Compensation Advisory Votes

LOGO

In Proposal Three, the Company is asking shareholders to cast an advisory vote for the compensation disclosed in this Proxy Statement that we paid in fiscal 2022 to our named executive officers. This advisory vote is referred to as a “say-on-pay” vote. In this Proposal Four, the Board is asking shareholders to cast a non-binding, advisory vote on how frequently we should have say-on-pay votes in the future. Shareholders will be able to mark the enclosed proxy card or voting instruction form on whether to hold say-on-pay votes every one, two or three years. Alternatively, shareholders may abstain from voting. If you “abstain” from voting on this proposal, your shares will not be treated as votes cast with respect to this proposal and, therefore, will have no effect on the outcome of the vote.

This vote, like the say-on-pay vote, is not binding on the Board. The Board will consider the interval selected by the highest number of votes cast to be the recommendation of the shareholders.

The Board believes at this time that say-on-pay votes should be held annually. Although this advisory vote on frequency is not binding on the Board, the Board values shareholder views as to what is an appropriate frequency for advisory votes on executive compensation.

Our Board of Directors Unanimously Recommends a Vote for the ONE YEAR Option on this Proposal

 

 

6866DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT


 

 Proposal Four: Shareholder Proposal Regarding Simple

 Majority Vote

LOGO

The Company has been advised that John Chevedden, 2215 Nelson Avenue, No. 205, Redondo Beach, California 90278, intends to submit the following proposal at the Annual Meeting. In accordance with applicable proxy regulations, the proposed resolution and supporting statement, for which the Board of Directors and the Company accept no responsibility, are set forth below. The proponent has represented that he beneficially owns at least $2,000 in market value of our common stock. Proposal Four will be required to be voted upon at the Annual Meeting only if properly presented. Approval of this proposal would require the affirmative vote of a majority of the votes properly cast in person or by proxy at the Annual Meeting. If you abstain, your shares will not be counted as having been voted on the matter. After careful consideration, the Board of Directors has determined to make NO RECOMMENDATION regarding this proposal.

Shareholder Proposal

Proposal Four - Simple Majority Vote

LOGO

Shareholders request that our board take each step necessary so that each voting requirement in our charter and bylaws (that is explicit or implicit due to default to state law) that calls for a greater than simple majority vote be replaced by a requirement for a majority of the votes cast for and against applicable proposals, or a simple majority in compliance with applicable laws. If necessary this means the closest standard to a majority of the votes cast for and against such proposals consistent with applicable laws. This includes making the necessary changes in plain English.

Shareholders are willing to pay a premium for shares of companies that have excellent corporate governance. Supermajority voting requirements have been found to be one of 6 entrenching mechanisms that are negatively related to company performance according to “What Matters in Corporate Governance” by Lucien Bebchuk, Alma Cohen and Allen Ferrell of the Harvard Law School. Supermajority requirements are used to block initiatives supported by most shareowners but opposed by a status quo management.

This proposal topic won from 74% to 88% support at Weyerhaeuser, Alcoa, Waste Management, Goldman Sachs, FirstEnergy, McGraw-Hill and Macy’s. These votes would have been higher than 74% to 88% if more shareholders had access to independent proxy voting advice. This proposal topic also received overwhelming 98%-support each at the 2023 annual meetings of American Airlines (AAL) and The Carlyle Group (CG).

Please vote yes:

Simple Majority Vote - Proposal 4

Board of Directors’ Response to Shareholder Proposal

The Board of Directors has carefully considered the proposal set forth above relating to the removal of supermajority voting standards in our Certificate of Incorporation, as amended and restated (our “Certificate of Incorporation”), and By-Laws. While the Board disagrees with certain assertions contained in the proposal’s supporting statement and disclaims knowledge regarding the statistical information set forth therein, it has determined to make NO RECOMMENDATION regarding this proposal to our shareholders.

The affirmative vote of a majority of the outstanding shares of capital stock of the Company present in person or represented by proxy at a meeting and entitled to vote on the subject matter is the voting standard for nearly all matters voted upon by our shareholders. Our use of supermajority voting standards is limited in our Certificate of Incorporation and our By-Laws solely to certain amendments of each such governing document. Currently, our Certificate of Incorporation provides that certain limited amendments to our Certificate of Incorporation or By-Laws require the

DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT 67


 Proposal Four: Shareholder Proposal Regarding Simple

 Majority Vote (continued)

LOGO

affirmative vote of at least seventy-five percent (75%) of the then outstanding shares of capital stock of the Company entitled to vote generally in the election of directors (the “Supermajority Voting Requirement”). This Supermajority Voting Requirement is limited to the following:

Amendments to the By-Laws (Article VII);

Number and election of Directors, terms of officer and Director vacancies (Article XI);

Amendment to the provisions of the Certificate of Incorporation prohibiting shareholder action by written consent (Article XIII); and

Amendment to the provisions of the Certificate of Incorporation restricting shareholder ability to call special meetings (Article XIV).

The proposal is advisory in nature only. Shareholders should note that approval of this proposal would not, by itself, implement a majority voting standard as described in the proposal, and the Board of Directors and our shareholders would need to take subsequent action to amend our Certificate of Incorporation and/or our By-Laws. In order to implement the majority voting standard, the Board would need to recommend a formal amendment to our Certificate of Incorporation. In accordance with our Certificate of Incorporation, such amendment would need to be approved at a subsequent meeting of shareholders. Therefore, a vote in favor of the proposal would constitute a recommendation that the Board initiate this amendment process.

We believe higher voting requirements are appropriate in limited circumstances because certain fundamental matters should require broad support and consensus from our shareholders. In addition, under a majority voting standard as proposed, holders of a significant minority of our outstanding shares could approve certain fundamental corporate changes without broad shareholder support, as a mere majority of the votes cast at a meeting could in many cases represent significantly less than a majority of our shares outstanding.

However, we recognize that some shareholders prefer a universal majority voting standard. As such, we want to use this proposal as an opportunity for shareholders to express their views on this subject. We will consider the voting results on this proposal, together with additional shareholder input received in the course of our regular shareholder engagement program, in our future deliberations regarding the appropriate voting standards within our Certificate of Incorporation and our By-Laws.

Our Board of Directors Makes NO RECOMMENDATION regarding this Proposal

68 DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT


Compensation of Directors

 

 LOGO

 

For fiscal 2022,2023, each director (other than Messrs. Allison andMr. Weiner) was paid an $85,000 annual retainer and was reimbursed for certain business expenses. In addition, the Presiding Director was paid an additional retainer of $25,000, the Chairperson of the Audit Committee was paid an annual retainer of $35,000 and non-Chair members were paid an annual retainer of $15,000, the Chairperson of the Compensation Committee was paid an annual retainer of $25,000 and non-Chair members were paid an annual retainer of $10,000, the Chairperson of the Inclusion & Diversity Committee was paid an annual retainer of $20,000 and non-Chair members were paid an annual retainer of $10,000, and the Chairperson of the Nominating and Corporate Governance Committee was paid an annual retainer of $20,000 and non-Chair members were paid an annual retainer of $10,000. From time to time, directors may also be compensated for their service on ad hoc committees of the Board. Neither Mr. Allison nor Mr. Weiner receiveddid not receive any additional compensation for their respectivehis service on the Board.

For 2022,2023, each director (other than Messrs. Allison andMr. Weiner) also received an annual equity award of restricted stock units under the EIP with an approximate value of $175,000 on the grant date, which resulted in an annual grant of 474 shares of531 restricted stock.stock units. The restricted stock units granted to directors hashave a one-year vesting period (subject to acceleration in the case of retirement or certain covered transactions, as described under “Potential Post-Employment Payments to Named Executive Officers” above) in accordance with the terms of the Company’s Restricted Stock Unit Agreement for Directors. The RSUs will convert to unrestricted common stock and be distributed upon vesting of the award. Directors are eligible for the qualified retirement provision in the Company’s equity awards. For directors, the specified service and age requirements are five years of continuous service and 55 years of age. As of January 1,December 31, 2023, Messrs. Brandon, Balson, Federico and Goldman and Ms.Mses. Cantor and Lopez had satisfied these qualified retirement requirements.

 

2022 Director Compensation Summary

 

2023 Director Compensation Summary

2023 Director Compensation Summary

 

Annual Retainer

Annual Retainer

Annual Retainer

Annual Retainer

  

Amount

   

Amount

 

Board of Directors

  $85,000   $85,000 

Presiding Director

  $25,000   $25,000 

Audit Committee

  

Audit Committee

Audit Committee

Audit Committee

Chairperson

  $35,000   $35,000 

Member

  $15,000   $15,000 

Compensation Committee

Compensation Committee

Compensation Committee

Compensation Committee

  

Chairperson

  $25,000   $25,000 

Member

  $10,000   $10,000 

Inclusion & Diversity Committee

  

Inclusion & Diversity Committee

Inclusion & Diversity Committee

Inclusion & Diversity Committee

Chairperson

  $20,000   $20,000 

Member

  $10,000   $10,000 

Nominating & Corporate Governance Committee

  

Nominating and Corporate Governance Committee

Nominating and Corporate Governance Committee

Nominating and Corporate Governance Committee

Nominating and Corporate Governance Committee

Chairperson

  $20,000   $20,000 

Member

  $10,000   $10,000 

 

Annual Equity Award

  

Value

 

Target grant date fair value

  

$

175,000

 

Award vests on first anniversary of the grant date

  

The directors are eligible to receive the same retainer amounts and equity target value for 2023. Beginning in 2023, directorsDirectors may elect to receive their annual retainer amounts either entirely in cash or in restricted stock units (in quarterly installments), or in varying increments of each.

Changes for 2024. Beginning in fiscal 2024, the annual retainer for directors increased to $90,000 and the target grant date fair value of the annual equity awards for directors increased to $190,000. These changes were made by the Compensation Committee, and approved by the Board of Directors, following a review by the Compensation Committee of a Meridian study on director compensation in order to keep the compensation of our directors near the median of the peer group used for executive compensation benchmarking purposes, as described under “Compensation Discussion and Analysis—Benchmarking and Peer Group”, based on a two-year projection of such market median given the Company’s biennial review of director compensation.

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 69

 


 

Compensation of Directors (continued)

 

 LOGO

 

Director Compensation Table for 20222023

The following table provides information concerning compensation for the Company’s directors during 2022:2023:

 

Name  

Fees Earned or

Paid in Cash
($)

   

Stock Awards

($)(1)

   

Option

Awards

($)

   

Non-Equity

Incentive

Plan

Compensation

($)

   

Change in

Pension

Value and

Nonqualified

Deferred

Compensation

Earnings

($)

   

All Other

Compensation
($)(2)

   

Total

($)

 
Name
Name
Name  

Fees Earned or

Paid in Cash
($)

   

Stock Awards

($)(1)

   

Option

Awards

($)

   

Non-Equity

Incentive

Plan

Compensation

($)

   

Change in

Pension

Value and

Nonqualified

Deferred

Compensation

Earnings

($)

   

All Other

Compensation
($)(2)

   

Total

($)

 

David A. Brandon(3)

   133,334    175,252                44,932    353,519    85,000    175,034                53,896    313,929 

C. Andrew Ballard(4)

   140,417    175,252                1,625    317,293    140,000    175,034                2,138    317,172 

Andrew B. Balson

   112,500    175,252                3,955    291,707 

Andrew B. Balson(5)

   106,250    175,034                2,138    283,422 

Corie S. Barry

   111,250    175,252                3,929    290,431    110,000    175,034                2,138    287,172 

Diana F. Cantor

   122,500    175,252                4,555    302,307    108,750    175,034                2,138    285,922 

Richard L. Federico

   106,250    175,252                2,777    284,279    116,250    175,034                2,138    293,422 

James A. Goldman

   122,500    175,252                2,605    300,357    112,500    175,034                2,138    289,672 

Patricia E. Lopez

   106,250    175,252                1,564    283,066    116,250    175,034                2,138    293,422 

 

 

(1)

Amounts in the “Stock Awards” column reflect the grant date fair value of grants of restricted stock units pursuant to our EIP determined in accordance with ASC 718 and reflect rounding up in the number of shares of restricted stock units granted. Assumptions used in the calculation of these amounts are included in Note 9 to the Company’s audited financial statements for the fiscal year ended January 1,December 31, 2023 included in the 20222023 10-K.

(2)

For Mr. Brandon,Amounts in this column represent (i) perquisites and other personal benefits totaling at least $10,000 in the amount in “All Other Compensation” represents $41,319 in reimbursements related to post-employment medicalaggregate and health benefits pursuant to his prior employment agreement with the Company (as amended from time to time), $3,166 for company-paid premiums for umbrella liability insurance, $1,956 in(ii) accrued cash dividends on the vesting of restricted stock and $447 inrestricted stock units. For all directors other than Mr. Brandon, the amounts represent accrued cash dividends on the vesting of restricted stock ($2,138). For Mr. Brandon, the amount includes reimbursements related to post-employment medical and health benefits, Company-paid premiums for umbrella liability insurance, purchases of Domino’s food items. For all other directors, the amounts in “All Other Compensation” represent the total of $1,564 initems and accrued cash dividends on the vesting of restricted stock and their respective purchasesrestricted stock units ($5,777). None of Domino’s food items.the amounts for Mr. Brandon’s perquisites or other personal benefits individually exceeded the greater of $25,000 or 10% of the total amount of these perquisites and other personal benefits except with respect to reimbursements related to post-employment medical and health benefits relating to Mr. Brandon’s prior employment with the Company ($42,211).

(3)

In his role as the Company’s Executive Chairman, effective as of May 1, 2022, Mr. Brandon serves as an employee of the Company and receives additional compensation in connection with such employment, as described under “Certain Transactions Involving Management or 5% or Greater Shareholders.” Prior to Mr. Brandon’s service as Executive Chairman, Mr. Brandon received an annual cash retainer of $225,000, paid in equal monthly installments, as compensation for his service as non-executive Chairman of the Board of Directors, which retainer was pro-rated for his service as non-executive Chairman of the Board of Directors through May 1, 2022.

(4)

IncludesAmount includes compensation received by Mr. Ballard in his role as Presiding Director of the Board of Directors as described above, above.

pro-rated(5) from

Mr. Balson elected to receive his cash retainer fees in the May 1, 2022 effective date.form of Company stock, and to defer distribution of such restricted stock units, pursuant to the DCP. “Fees Earned or Paid in Cash” represents $106,250 in cash retainer fees for which Mr. Balson received an additional 305 restricted stock units pursuant to his election to receive such cash retainer fees in Company stock.

Non-Qualified Deferred Compensation of Directors

The following table provides information on the DCP for directors as of January 1,December 31, 2023:

 

Name
Name
Name
Name  

Director

Contributions

in Last Fiscal

Year

($)(1)

   

Registrant

Contributions in

Last

Fiscal Year

($)

   

Aggregate

Earnings

in Last

Fiscal Year

($)(2)

 

Aggregate

Withdrawals /

Distributions

($)

   

Aggregate

Balance at

Last Fiscal

Year-End

($)(3)

   

Director

Contributions

in Last Fiscal

Year

($)(1)

   

Registrant

Contributions in

Last

Fiscal Year

($)

   

Aggregate

Earnings

in Last

Fiscal Year

($)(2)

   

Aggregate

Withdrawals /

Distributions

($)

   

Aggregate

Balance at

Last Fiscal

Year-End

($)(3)

 

David A. Brandon(4)

   57,918        (369,433      2,976,081    253,560        474,641        3,645,322 

C. Andrew Ballard

                                       

Andrew B. Balson

   85,000        (190,071      929,831    106,250        244,427        1,280,508 

Corie S. Barry

                                       

Diana F. Cantor

                                       

Richard L. Federico

                                       

James A. Goldman

           (244,755      1,092,233            178,323        1,270,556 

Patricia E. Lopez

   80,000        (56,808      411,962            66,898        478,860 

 

 

(1)

Entire amounts contributed by participants are included as “Fees Earned or Paid in Cash” in the Director Compensation Table above. For Mr. Brandon, also includes contributions of compensation received as the Company’s Executive Chairman, a role for which he serves as an employee of the Company, as described under “Certain Transactions Involving Management or 5% or Greater Shareholders.” For Mr. Balson, represents amount of cash retainer fees for which he received an additional 305 restricted stock units pursuant to his election to receive such cash retainer fees in Company stock as described in footnote (5) to the Director Compensation table above.

70 DOMINO’S PIZZA, INC. 2024 PROXY STATEMENT


 Compensation of Directors (continued)

LOGO

(2)

Reflects dividends, interest and aggregate market-based earnings (loss) on amounts deferred by plan participants.

(3)

Represents the participant’s account balance as of January 1,December 31, 2023, which includes compensation reported in fiscal years 2013-2021,2013-2022, as applicable, as follows: Mr. Brandon $3,287,596,$2,917,121, Mr. Balson $1,034,902,$929,831, Mr. Goldman $1,336,988$1,092,233 and Ms. Lopez $388,771,$411,962, in each case as adjusted for applicable changes in market value of the notional investment of such amounts.

(4)

Represents contributions by Mr. Brandon’s deferredBrandon of compensation prior to the commencement ofreceived in both his servicerole as an employee of the Companya director and in connection with his appointmentrole as Executive Chairman, of the Board of Directors effective as of May 1, 2022.described under “Certain Transactions Involving Management or 5% or Greater Shareholders.”

70    DOMINO’S PIZZA, INC. 2023 PROXY STATEMENT


Compensation of Directors (continued)

LOGO

Under the DCP, beginning in fiscal 2023, a director may irrevocably elect to defer receipt of shares of common stock the director would have received upon vesting of restricted stock units comprising his or her annual retainer and/or annual equity award. The purpose of the plan is to enhance the Company’s ability to attract and retain directors by providing individual financial and tax planning flexibility. Deferred stock resulting from deferrals under the DCP is counted toward meeting the stock ownership requirements for directors of five times their annual retainer fee.

Outstanding Equity Awards of Directors

The following table shows the number of shares underlying outstanding restricted stock awards and RSUsunits for the Company’s directors as of January 1,December 31, 2023:

 

Name  

Outstanding

Stock Awards

(#)

 

David A. Brandon

   2,8951,947(1) 

C. Andrew Ballard

   474531 

Andrew B. Balson

   474836(2) 

Corie S. Barry

   474531 

Diana F. Cantor

   474531 

Richard L. Federico

   474531 

James A. Goldman

   474531 

Patricia E. Lopez

   474531 

 

(1)

Comprised of an annual equity grant of 474531 restricted stock awardsunits for Mr. Brandon’s service as a director and a grant of 2,4211,416 RSUs awarded in connection with his appointment as Executive Chairman of the Board of Directors and resulting employment with the Company effective as of May 1, 2022 as further described under “Certain Transactions Involving Management or 5% or Greater Shareholders.”

(2)

Comprised of an annual equity grant of 531 restricted stock units and an additional 305 restricted stock units representing restricted stock units awarded pursuant to Mr. Balson’s election to receive his cash retainer fees in the form of Company stock, and to defer distribution of such restricted stock units, pursuant to the DCP as described in footnote (5) to the Director Compensation table above.

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 71

 


 

Equity Compensation Plan Information

 

 LOGO

 

The following table sets forth, as of January 1,December 31, 2023, the end of the Company’s last fiscal year, (a) the number of securities that could be issued upon exercise of outstanding options under the Company’s equity compensation plans, (b) the weighted-average exercise price of outstanding options under such plans and (c) the number of securities remaining available for future issuance under such plans, excluding securities that could be issued upon exercise of outstanding options and shares of restricted stock, performance shares, RSUs and PSUs that have been issued.

 

Plan Category
Plan Category
Plan Category
Plan Category  

Number of Securities

to be Issued Upon

Exercise of Outstanding

Options, Warrants

and Rights

 

Weighted-

Average

Exercise

Price of

Outstanding

Options,

Warrants

and Rights

   

Number of Securities

Remaining Available

for Future Issuance Under

Equity Compensation

Plans (Excluding Securities

Reflected in First

Column)(1)

   

Number of Securities

to be Issued Upon

Exercise of Outstanding

Options, Warrants

and Rights

 

Weighted-

Average

Exercise

Price of

Outstanding

Options,

Warrants

and Rights

   

Number of Securities

Remaining Available

for Future Issuance Under

Equity Compensation

Plans (Excluding Securities

Reflected in First

Column)(1)

 

Equity compensation plans approved by shareholders

   817,786(2)  

$

206.69

 

  

 

2,989,115

 

   935,483(2)  

$

229.45

 

  

 

2,736,505

 

Equity compensation plans not approved by shareholders

  

 

 

 

 

 

  

 

 

  

 

 

 

 

 

  

 

 

  

 

  

 

   

 

 

 

  

 

   

 

 

Total

  

 

817,786

 

 

$

206.69

 

  

 

2,989,115

 

  

 

935,483

 

 

$

229.45

 

  

 

2,736,505

 

 

 

(1)

Includes 582,280564,086 shares that may be issued under the ESPDP as previously approved by the Company’s shareholders and registered under registration statements filed by the Company on August 23, 2004 (with respect to 1,000,000 shares) and May 26, 2011 (with respect to an additional 500,000 shares).ESPDP.

(2)

Consists of 672,142686,348 options, 3,792 shares of restricted stock, 22,8826,396 performance share awards and 118,970242,739 PSUs and RSUs and PSUs (assuming the target performance for PSUs) currently awarded under the EIP. The weighted average exercise price above does not take such shares of restricted stock, performance share awards, RSUsPSUs or PSUsRSUs into account.

Domino’s Pizza, Inc. 2004 Equity Incentive Plan

The Domino’s Pizza, Inc. 2004 Equity Incentive Plan was adopted by the Board on June 1, 2004 and was approved by the Company’s shareholders. An Amended Domino’s Pizza, Inc. 2004 Equity Incentive Plan (the “EIP”) was approved by shareholders at the 2008 annual meeting of shareholders, and a further amendment to the EIP was approved by shareholders at the 2009 annual meeting of shareholders.

The Board may make grants to employees, directors, consultants and other service providers. The number of shares reserved for issuance under the EIP includes: (1) 15,600,000 shares of common stock, plus (2) any shares returned to the EIP as a result of termination of options that were granted under the EIP (by reason of forfeiture or expiration) and any shares held back in satisfaction of total exercise cost from shares that would otherwise have been delivered pursuant to an award.

As of January 1,December 31, 2023, there were 672,142686,348 options outstanding at a weighted average exercise price equal to $206.69$229.45 per share (of which 584,860543,728 were exercisable at a weighted average exercise price equal to $181.20$203.70 per share), 3,792 shares of restricted stock and 22,8826,396 performance shares, for a total of 698,816692,744 options shares of restricted stock and performance shares currently issued and outstanding under the EIP. As of January 1,December 31, 2023, there were a total of 2,406,8352,172,419 authorized but unissued shares under the EIP.

The maximum number of shares of stock for which options may be granted to any person in any calendar year or that may be delivered to any person in any calendar year is 1,000,000. Stock options currently vest over a three-year period. Incentive stock options may be granted only to employees. The exercise price of all incentive stock options granted under the EIP is determined by the Compensation Committee, as administrator of the EIP, and must be at least equal to the fair market value of the common stock on the date of grant. With respect to any participant who owns stock representing more than 10% of the total combined voting power of all classes of the Company’s outstanding capital stock, the exercise price of any incentive stock option grant must be at least equal to 110% of the fair market value on the grant date, and the term of such incentive stock option must not exceed five years. The term of all other incentive stock options granted under the EIP may not exceed ten years.

 

 

 

72 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT


 

Certain Transactions Involving Management or 5% or

 Greater Shareholders

 

 LOGO

 

Review and Approval of Related Person Transactions

The Company reviews relationships and transactions in which the Company and its directors and executive officers or their immediate family members are participants to determine whether such related persons have a direct or indirect material interest. The Company’s legal staff is primarily responsible for the development and implementation of processes and controls to obtain information from the directors and executive officers with respect to related person transactions and for then determining, based on the facts and circumstances, whether a related person has a direct or indirect material interest in the transaction. The Company does not currently have a specific written policy on the review, approval or ratification of transactions required to be reported under Section 404(a) of Regulation S-K, but the Company has enacted a Code of Business Conduct and Ethics for Directors, Officers and Employees as well as Corporate Governance Principles, both of which contain provisions relating to possible conflicts of interest of employees, directors and officers of the Company. The Company’s Board of Directors is responsible for reviewing potential related person transactions and, in connection with its review, will consider the nature of the related person’s interest in the transaction, the material terms of the transaction, the relative importance of the transaction to the related person, the relative importance of the transaction to the Company, whether the transaction would impair the judgment of a director or officer of the Company and any other matters deemed important, following which it may approve or ratify the transaction in its discretion. As required under SEC rules, transactions with any related person that are determined to be directly or indirectly material are disclosed in this Proxy Statement.

Time-Sharing Agreement with Russell J. Weiner for Use of Corporate Aircraft

Domino’s Pizza LLC and Russell J. Weiner entered into a Time-Sharing Agreement dated February 24, 2022 and effective May 1, 2022 whereby Mr. Weiner is entitled to 45 hours per year of personal use of the Company aircraft without charge. Mr. Weiner is required to pay the Company for any personal use in excess of the 45 hours at a reimbursement rate set by the Federal Aviation Regulations. For 2022,2023, Mr. Weiner’s personal use of the Company aircraft did not exceed the allotted 45totaled 59.5 hours and, therefore, he did not reimbursereimbursed the Company $84,750.99 for any excess use.

Time-Sharing Agreement with Richard E. Allison, Jr. for Use of Corporate Aircraft

In accordance with the terms of the Time-Sharing Agreement between Domino’s Pizza LLC and Richard E. Allison, Jr. dated January 8, 2018 and effective July 1, 2018, during his time as the Company’s Chief Executive Officer, Mr. Allison was entitled to 45an additional 14.5 hours per year of personal use of the Company aircraft without charge. Mr. Allison was required to pay the Company for any personal use in excess of the 45 hours at a reimbursement rate set by the Federal Aviation Regulations. For 2022, Mr. Allison’s personal use of the Company aircraft did not exceed the allotted 45 hours and, therefore, he did not reimburse the Company for any excess use.

Employment of David A. Brandon

As part of our CEO succession plan and Mr. Brandon’s appointment as the Company’s Executive Chairman, effective May 1, 2022, Mr. Brandon has served as an employee of the Company and receives compensation in connection with such employment. In 2022,2023, Mr. Brandon received an annual base salary of $275,000 and had an annual short-term cash incentive award target under the Company’s Team Achievement Dividend (“TAD”) Program of 100% of his base salary which was not pro-rated for fiscal 2022 and which paid out based on actual performance at the same level as AIP awards. Accordingly, Mr. Brandon earned $136,950$292,325 under the Company’s TAD Program in 2022.2023. Mr. Brandon also received an award of RSUs in connection with the commencement of his employment in 20222023 with a target grant date fair value of $850,000$425,000 and an actual grant date value, as determined in accordance with ASC 718 using the same assumptions as set forth in the footnotes to the applicable tables above, of $850,062.$425,027. This award was granted in the form of 2,4211,416 RSUs, with such RSUs vesting ratably in annual installments over three years and subject to accelerated vesting in the event Mr. Brandon no longer serves as Executive Chairman prior to the third anniversary of the date of grant, other than in the case of Mr. Brandon’s voluntary resignation. Mr. Brandon is able to participate in all benefit programs available to the Company’s employees and is eligible for future awards of RSUs. In connection with Mr. Brandon’s prior service as the Company’s Chief Executive Officer, Mr. Brandon and his spouse are entitled to continued medical coverage for the remainder of their respective lives.

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 73

 


 

Other Matters

 

 LOGO

 

Attending the Annual Meeting

The Annual Meeting will be held on Tuesday,Thursday, April 25, 20232024 at 10:00 a.m. Eastern Time. To provide a more inclusive experience for our shareholders and reach a greater number of shareholders in as efficient a manner as possible, the Annual Meeting will be held exclusively online. There will not be a physical location for the Annual Meeting, and you will not be able to attend the meeting in person. To be admitted to the Annual Meeting at www.virtualshareholdermeeting.com/DPZ2023DPZ2024, you must enter the control number on your proxy card, voting instruction form, or Notice of Internet Availability you previously received.

Shareholder Proposals and Director Nominations for Inclusion in Next Year’s Proxy Statement Pursuant to Rule 14a-8

In order to be considered for inclusion in the proxy statement distributed to shareholders prior to the annual meeting of shareholders in 2024,2025, a shareholder proposal pursuant to Rule 14a-8 under the Exchange Act must be received by the Corporate Secretary of Domino’s Pizza, Inc. no later than November 17, 202315, 2024 and must comply with the requirements of Rule 14a-8. Written requests for inclusion should be addressed to: Domino’s Pizza, Inc., 30 Frank Lloyd Wright Drive, Ann Arbor, Michigan 48105 Attention: Corporate Secretary. It is suggested that you mail your proposal by certified mail, return receipt requested.

Shareholder Proposals and Director Nominations other thanOther Than Pursuant to Rule 14a-8

If a shareholder wishes to present a proposal or to nominate one or more directors at our 20242025 annual meeting of shareholders and the proposal is not intended to be included in our proxy statement relating to that meeting, the shareholder must give advance written notice in accordance with the Company’s By-Laws, and, if applicable, Rule 14a-19 under the Exchange Act. Under the By-Laws, any shareholder of record of Domino’s Pizza, Inc. entitled to vote for the election of directors may nominate candidates for election to the Board or present other business at an annual meeting if a written notice is received by the Corporate Secretary of Domino’s Pizza, Inc. at the Company’s principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary of the preceding year’s annual meeting. Such written notice must set forth the following information: (i) as to each person whom the shareholder proposes to nominate for election as a director, all information relating to such person that is required to be disclosed in solicitations of proxies for election of directors pursuant to the Exchange Act, as amended (including such person’s written consent to being named in the proxy statement as a nominee and to serving as a director if elected), (ii) as to any other business to be brought before the meeting, (a) a brief description of the business, (b) the reasons for conducting such business and (c) any material interest in such business of such shareholder and the beneficial owner, if any, on whose behalf the proposal is made, and (iii) as to the shareholder and the beneficial owner, if any, on whose behalf the nomination or proposal is made, (a) the name and address of such shareholder and such beneficial owner and (b) the number of shares of common stock that are held of record by such shareholder and owned beneficially by such beneficial owner.

The deadline for receipt of timely notice of director nominations or other shareholder proposals for submission to the Domino’s annual meeting of shareholders without inclusion in the Company’s 20242025 Proxy Statement is January 26, 2024.25, 2025. Unless such notice is received by Domino’s at its corporate headquarters, Attention: Corporate Secretary, on or before the foregoing date, such matter will be brought before the meeting only in the Company’s discretion and proxies with respect to such matter will confer voting authority only if such matter comes before the meeting.

Universal Proxy Rules for Director Nominations

In addition to satisfying the foregoing requirements under the By-Laws, to comply with the universal proxy rules, shareholders who intend to solicit proxies in support of director nominees other than the Company’s nominees must provide notice in accordance with the By-Laws and Rule 14a-19 that sets forth the information required by Rule 14a-19 under the Securities Exchange Act of 1934, as amended (including a statement that such shareholder intends to solicit the holders of shares representing at least 67% of the voting power of the Company’s shares entitled to vote on the election of directors), and otherwise comply with the requirements of Rule 14a-19(b).

 

 

 

74 DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT


 

Other Matters (continued)

 

 LOGO

 

Interested Persons and Shareholder Communications to the Board of Directors

Shareholders and interested persons may communicate with the Board or one or more directors by sending a letter addressed to the Board or to any one or more directors in care of Corporate Secretary, Domino’s Pizza, Inc., 30 Frank Lloyd Wright Drive, Ann Arbor, Michigan 48105, in an envelope clearly marked “shareholder communication.” The Corporate Secretary’s office will forward such correspondence unopened to either Mr. Ballard, as the Presiding Director, or to another independent director as the Board may specify from time to time, unless the envelope specifies that it should be delivered to another director.

“Householding” of Proxy Materials

The SEC has adopted rules that permit companies and intermediaries such as brokers to satisfy delivery requirements for proxy statements with respect to two or more shareholders sharing the same address by delivering a single proxy statement addressed to those shareholders. This process, which is commonly referred to as “householding,” potentially provides extra convenience for shareholders and cost savings for companies. The Company and some brokers household proxy materials, delivering a single proxy statement to multiple shareholders sharing an address unless contrary instructions have been received from the affected shareholders. Once you have received notice from your broker or the Company that they will be householding materials to your address, householding will continue until you are notified otherwise or until you revoke your consent. If, at any time, you no longer wish to participate in householding and would prefer to receive a separate proxy statement, or if you are receiving multiple copies of the proxy statement and wish to receive only one, please notify your broker if your shares are held in a brokerage account or the Company if you hold registered shares. You can notify the Company by sending a written request to Domino’s Pizza, Inc., Investor Relations, 30 Frank Lloyd Wright Drive, Ann Arbor, Michigan 48105, or calling Investor Relations at (734) 930-3925.930-3022.

General Information

Our 20222023 Annual Report was mailed or made available to our shareholders with this Proxy Statement and is posted on our corporate website at ir.dominos.com. A copy of our 20222023 Annual Report, as filed with the SEC, will be sent to any shareholder, without charge, upon written request addressed to Investor Relations, Domino’s Pizza, Inc., 30 Frank Lloyd Wright Drive, Ann Arbor, Michigan 48105.

Management knows of no other business which may be properly brought before the Annual Meeting. However, if any other matters shall properly come before such meeting, it is the intention of the persons named in the enclosed form of Proxyproxy to vote such Proxyproxy in accordance with their best judgment on such matters.

It is important that Proxiesproxies be returned promptly. Therefore, whether or not you expect to attend the Annual Meeting in person, you are urged to fill in, sign and return the Proxyproxy card in the enclosed stamped, self-addressed envelope, or to vote electronically as described on page 6 of this Proxy Statement.

By order of the Board of Directors,

 

LOGO

Kevin S. Morris

Executive Vice President, General Counsel

and Corporate Secretary

March 16, 202315, 2024

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT 75

 


 

Annex A

 

 LOGO

 

Domino’s Pizza, Inc. Executive Officers and Directors

 

Executive Officers

Russell J. Weiner

Chief Executive Officer

Joseph H. Jordan

President, U.S. & Global Services

Arthur P. D’Elia

Executive Vice President, International

Kelly E. Garcia

Executive Vice President, Chief Technology Officer

Frank R. Garrido

Executive Vice President, U.S. Operations and SupportChief Restaurant Officer

Cynthia A. Headen

Executive Vice President, Chief Supply Chain ServicesOfficer

Samuel A. Jackson

Executive Vice President, Human Resources

Kevin S. Morris

Executive Vice President, General Counsel and Corporate Secretary

Lisa V. Price

Executive Vice President, Chief Human Resources Officer

Sandeep Reddy

Executive Vice President, Chief Financial Officer

Board of Directors

David A. Brandon

Executive Chairman of the Board

Russell J. Weiner

Chief Executive Officer and Director

C. Andrew Ballard

Presiding Director

Andrew B. Balson

Director

Corie S. Barry

Director

Diana F. Cantor

Director

Richard L. Federico

Director

James A. Goldman

Director

Patricia E. Lopez

Director

 

 

 

DOMINO’S PIZZA, INC. 20232024 PROXY STATEMENT A-1

 


LOGO


 

 

DOMINO’S PIZZA, INC.

ATTN: CORPORATE SECRETARY

30 FRANK LLOYD WRIGHT DRIVE

ANN ARBOR, MI 48105

  

LOGO

LOGO
  

  SCAN TO

VIEW MATERIALS & VOTE

 

  LOGOLOGO
  

 

VOTE BY INTERNET

  

Before The Meeting - Go to www.proxyvote.com or scan the QR Barcode above

  

 

Use the Internet to transmit your voting instructions and for electronic delivery of information. Vote by 11:59 p.m. Eastern Time on April 24, 20232024 for shares held directly and by 11:59 p.m. Eastern Time on April 19, 20232024 for shares held in a Plan. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.

  

 

During The Meeting - Go to www.virtualshareholdermeeting.com/DPZ2023DPZ2024

  

 

You may attend the meeting via the Internet and vote during the meeting. Have the information that is printed in the box marked by the arrow available and follow the instructions.

  

 

VOTE BY PHONE - 1-800-690-6903

  

Use any touch-tone telephone to transmit your voting instructions. Vote by 11:59 p.m. Eastern Time on April 24, 20232024 for shares held directly and by 11:59 p.m. Eastern Time on April 19, 20232024 for shares held in a Plan. Have your proxy card in hand when you call and then follow the instructions.

  

 

VOTE BY MAIL

  

Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.

TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:

V03397-P86580-Z84349V34662-P02664-Z86742       KEEP THIS PORTION FOR YOUR RECORDS

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THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.

  

DETACH AND RETURN THIS PORTION ONLY 

 

 

DOMINO’S PIZZA, INC.

The Board of Directors recommends you vote FOR the following:

   

For

All

  

Withhold

All

  

For All

Except

    

To withhold authority to vote for any individual nominee(s), mark “For All Except” and write the number(s) of the nominee(s) on the line below.

1.

Election of Directors

Nominees:

       
    

The Board of Directors recommends you vote FOR the following:

 

              
 1.

  Election of Directors

  Nominees:

 01)   David A. Brandon     06)  Richard L. Federico

 

  
 02)   C. Andrew Ballard    07)  James A. Goldman

 

  
 03)   Andrew B. Balson     08)  Patricia E. Lopez

 

  
 04)   Corie S. Barry       09)  Russell J. Weiner

 

  
 05)   Diana F. Cantor

 

  
 

The Board of Directors recommends you vote FOR proposals 2 and 3.

 

      

For

 

  

Against

 

   

 

Abstain

 

 

 

  
 2. Ratification of the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the Company for the 2023 fiscal year.            
 3. Advisory vote to approve the compensation of the named executive officers of the Company.            
Shareholder Proposal
 

The Board of Directors recommends you vote 1 YEAR on proposalmakes no recommendation either “FOR” or “AGAINST” Proposal 4.

 

    

1 YearFor

 

  

2 Years

3 YearsAgainst

 

   

 

Abstain

 

 

 

  
 4. Advisory vote to recommend the frequency of future advisory votes on the compensation of the named executive officers of the Company.Shareholder proposal regarding simple majority vote.            
 NOTE: Such other business as may properly come before the meeting or any adjournment thereof.      
 

Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer.

                

 

    
                        
  

Signature [PLEASE[PLEASE SIGN WITHIN BOX]

 

 

Date   

 

        

Signature (Joint Owners)

 

 

Date   

 

  


 

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:

The Notice and Proxy Statement and Annual Report are available at www.proxyvote.com.

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V03398-P86580-Z84349V34663-P02664-Z86742

 

     

 

DOMINO’S PIZZA, INC.

Annual Meeting of Shareholders

April 25, 20232024 10:00 AM ET

    
     This proxy is solicited by the Board of Directors    
  

 

The undersigned hereby constitutes and appoints Russell J. Weiner, Sandeep Reddy and Kevin S. Morris, and each of them, their true and lawful agents and proxies with full power of substitution in each, to represent the undersigned at the Annual Meeting of Shareholders of Domino’s Pizza, Inc. to be held virtually via a live webcast at www.virtualshareholdermeeting.com/DPZ2023,DPZ2024, on Tuesday,Thursday, April 25, 2023,2024, and at any adjournments thereof, on all matters coming before said meeting.

 
  

 

You are encouraged to specify your choices by marking the appropriate boxes, SEE REVERSE SIDE, but you need not mark any boxes if you wish to vote in accordance with the Board of Directors’ recommendations. The proxies cannot vote these shares unless you either sign and return this card or vote electronically.

 
  

 

This proxy, when properly executed, will be voted in the manner directed herein. If no such direction is made, this proxy will be voted in accordance with the Board of Directors’ recommendations (FOR each of the nominees listed in Proposal One, FOR Proposal Two, FOR Proposal Three and 1 YEARABSTAIN for Proposal Four). In their discretion, the proxies are authorized to vote upon such other business as may properly come before the Annual Meeting or any adjournment thereof.

 

 
     

 

Continued and to be signed on reverse side