Navdeep Gupta
DICK'S SPORTING GOODSAbout Navdeep Gupta
Executive Vice President — Chief Financial Officer of DICK’S Sporting Goods. Pay design ties a large portion of his compensation to company performance through Adjusted Non‑GAAP EBT (STIP) and a balanced mix of Adjusted Non‑GAAP EBT and Adjusted Net Sales (PSUs), with multi‑year LTIP metrics adding merchandise margin retention and, beginning 2025, ecommerce comp growth and external merchandise margin % . In fiscal 2024, DICK’S delivered record net sales of $13.44B (+3.5% YoY), EBT margin of 11.3% (+115 bps YoY), and EPS of $14.05 (+15.4% YoY), supporting above‑target incentive outcomes; five‑year TSR since 2019 reached $640 on a $100 base in 2024 disclosures . 2024 say‑on‑pay support exceeded 99%, and 2025 comp changes increased Gupta’s variable pay leverage and LTIP targets .
Fixed Compensation
| Item | 2022 | 2023 | 2024 | 2025 | Notes |
|---|---|---|---|---|---|
| Base Salary ($) | $588,933 | $692,740 | $750,000 | $825,000 | 2025 increase reflects market alignment |
| STIP Target (% of Eligible Earnings) | 70% (prior) | 75% (raised Mar-2023) | 75% | 125% | STIP based on Adjusted Non‑GAAP EBT with threshold gate |
| Actual STIP Payout ($) | $412,253 | $515,455 | $910,934 | — | 2024 attainment 163.8% of target for non‑CEO NEOs |
| Officers’ Plan Company Match ($) | $124,456 | $99,303 | $119,204 | — | Nonqualified deferred comp plan (20% match up to $200k) |
Performance Compensation
| Program/Award | Metric(s) | Weight | Target | Actual/Attainment | Vesting |
|---|---|---|---|---|---|
| 2024 STIP | Adjusted Non‑GAAP EBT | 100% | Not disclosed | 163.8% of target payout | Cash, paid after certification |
| 2024 Annual PSU (granted 4/3/24) | Adjusted Non‑GAAP EBT; Adjusted Net Sales | 50% / 50% | 1,918 target units | 157.3% attained; 3,017 units earned | Cliff vest 4/3/2027 |
| 2024 Annual RSA (granted 4/3/24) | Time‑based | — | $945,075 grant date value | N/A | Cliff vest 3 years (to 4/3/2027) |
| 2023 Annual PSU (granted 4/3/23) | Adjusted Non‑GAAP EBT; Adjusted Net Sales | 50% / 50% | 2,752 target units | 110.14% attained; 3,031 units (company‑wide example) | Cliff vest 4/3/2026 |
| 2023 LTIP PSU (granted 4/3/23) | Adjusted Non‑GAAP EBT; Adjusted Net Sales; Adjusted Merchandise Margin Retention | 40% / 40% / 20% | 8,494 target units | 118.1% attained; 10,031 units earned | Cliff vest 4/3/2025 |
| 2025 Annual Equity | PSU and RSA (50%/50%) | — | $1,500,000 target value | Granted at target | 3‑year PSU design; RSA 3‑year cliff |
| 2025 LTIP PSU (granted 4/3/25) | Adjusted Non‑GAAP EBT; Adjusted Net Sales; Adjusted eCommerce Comp Sales Growth; Adjusted External Merchandise Margin % | — | $1,500,000 target value | Goals confidential; threshold EBT gate | Cliff vest 4/3/2028 (2‑yr perf + 1‑yr hold) |
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Beneficially owned common shares | 91,033 shares; <1% of common shares outstanding |
| Unvested RS/earned PS (at 2/1/25) | 6,046 RS (vest 4/3/25; $1,451,342), 6,422 RS (vest 4/3/26; $1,541,601), 4,475 RS (vest 4/3/27; $1,074,224), 2,591 (2022 PSU target; $621,970), 3,031 (2023 PSU 110.1%; $727,592) |
| Unvested performance units (at 2/1/25) | 3,017 (2024 PSU 157.3%; $724,231), 10,031 (2023 LTIP 118.1%; $2,407,942) |
| Stock ownership guidelines; compliance | Executive ownership guidelines in place; all NEOs in compliance as of record date |
| Hedging/Pledging | Hedging prohibited; pledging strongly discouraged |
Upcoming vesting and potential supply
| Vest Date | Award | Units/Shares | FY‑end Mark‑to‑Market ($) |
|---|---|---|---|
| 4/3/2025 | 2023 LTIP PSU (118.1%) | 10,031 | $2,407,942 |
| 4/3/2025 | 2022 Annual PSU (target basis) | 2,591 | $621,970 |
| 4/3/2025 | 2022/2023 RS tranches (time‑based) | 6,046 | $1,451,342 |
| 4/3/2026 | 2023 Annual PSU (110.1%) | 3,031 | $727,592 |
| 4/3/2026 | RS (time‑based) | 6,422 | $1,541,601 |
| 4/3/2027 | 2024 Annual PSU (157.3%) | 3,017 | $724,231 |
| 4/3/2027 | RS (time‑based) | 4,475 | $1,074,224 |
Employment Terms
- Employment agreements: Generally none; executives may have offer letters but no ongoing contracts .
- Severance/CIC: No executive severance or change‑in‑control agreements; equity awards may accelerate if not assumed/substituted upon a CIC; death/disability accelerate time‑based RS and allow PSU vesting if metrics met; retirement (55/15) may allow pro‑rata PSU vesting at committee discretion .
- Clawbacks: Awards subject to recoupment per company policy and applicable law/NYSE listing standards .
- Deferred compensation: Officers’ Supplemental Savings Plan (20% match up to $200k; contributions 2024: Gupta $597,460; company match $119,204; year‑end balance $5,378,651; five‑year vesting on match) .
Trading Activity and Potential Selling Pressure
| Year | Options Exercised (Shares) | Value Realized ($) | Notes |
|---|---|---|---|
| 2024 | 16,211 | $3,415,537 | Options at $11.31 exercised and sold at ~$222; indicates some liquidity events in year |
| 2023 | 42,150 | $5,146,904 | Multiple option exercises and partial sales to cover costs/taxes |
Compensation Structure Analysis
- Pay mix shift and leverage: 2025 increased Gupta’s STIP target from 75% to 125% of salary and annual equity target from $0.9M to $1.5M, with annual equity now 50% PSUs/50% RSAs (from 30%/70%), raising performance linkage and future vest‑driven supply potential .
- Performance metrics robustness: All incentive plans include a threshold Adjusted Non‑GAAP EBT “gate”; PSUs balance top‑line (Net Sales) and profitability (EBT); LTIP adds multi‑year margin quality metrics (2023: merchandise margin retention; 2025 adds ecommerce comp and external merchandise margin %) .
- No windfalls/red flags: No severance/CIC agreements; no option repricing; hedging prohibited; limited perquisites; say‑on‑pay support >99% .
Company Performance Context (for pay‑for‑performance)
| Metric | FY 2023 | FY 2024 | Commentary |
|---|---|---|---|
| Net Sales ($B) | $12.98 | $13.44 | +3.5% YoY in 2024 |
| EBT Margin (%) | 10.2 | 11.3 | +115 bps YoY in 2024 |
| EPS (Diluted, $) | $12.18 (GAAP); $12.91 (Non‑GAAP) | $14.05 | +15.4% YoY EPS growth |
| TSR (Cumulative since 2019) | — | $640 value of $100 initial (Company) | Pay‑versus‑performance disclosure |
Multi‑Year Compensation Summary (Navdeep Gupta)
| Year | Salary ($) | Stock Awards ($) | Non‑Equity Incentive ($) | Company Match/Deferred ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2022 | $588,933 | $875,101 | $412,253 | $124,456 | $21,805 | $2,022,548 |
| 2023 | $692,740 | $2,600,200 | $515,455 | $99,303 | $22,235 | $3,929,933 |
| 2024 | $741,346 | $1,350,138 | $910,934 | $119,204 | $25,838 | $3,147,460 |
Compensation Peer Group and Benchmarking
- 2024 retail peer group included Academy Sports, AutoZone, BJ’s, Foot Locker, NIKE, Ross, Tractor Supply, Ulta, VF, Williams‑Sonoma, among others .
- 2025 changes removed Advance Auto Parts, Burlington, Dollar Tree, Kohl’s; added Best Buy, Starbucks, TJX, CarMax, and lululemon to reflect competitive talent market .
- Willis Towers Watson serves as management’s compensation consultant; assessed as independent under NYSE rules .
Governance, Policies, and Shareholder Feedback
- Stock ownership guidelines for executives and directors; all NEOs in compliance as of the 2025 record date .
- Clawback policy; hedging prohibited; pledging strongly discouraged .
- Say‑on‑pay support exceeded 99% at the 2024 meeting; Board considered common‑stock‑only results given Class B 10:1 voting power .
Investment Implications
- Elevated performance leverage: 2025 increases to STIP target (125%) and PSUs (50% of annual equity) heighten upside/downside to operating execution; LTIP adds ecommerce and external margin metrics, further aligning incentives to strategic priorities .
- Vesting overhang: Substantial vesting in 2025 (2023 LTIP 10,031 units; 2022 PSU and RS tranches) and again in 2026–2027 could create episodic selling pressure, though ownership guidelines restrict net share sales until compliance maintained .
- Alignment and risk: No executive severance/CIC agreements, strong gatekeeping of payouts via EBT thresholds, and robust clawback/anti‑hedging policies mitigate pay‑risk; above‑target 2024 payouts were supported by strong EBT margin expansion and EPS growth .