Sandeep Reddy
Executive Vice President, Chief Financial Officer at DPZ
Executive
About Sandeep Reddy
Executive Vice President and Chief Financial Officer of Domino’s Pizza, Inc. since April 1, 2022; age 51 as of his appointment in 2022; BA (Honors) in Economics from Delhi University and MBA from Cornell University . Under his tenure, DPZ delivered fiscal 2024 global retail sales of $19.1B, Incentive Adjusted EBITDA of $1.012B, income from operations of $879M, and a year-end stock price of $429.62, with stock price up 24% from fiscal 2022 to fiscal 2024, supporting pay-for-performance alignment in the incentive framework .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Six Flags Entertainment | EVP & CFO | 2020–2022 | Led emergence from the pandemic with strong financial results; strategic partner to CEO |
| Guess?, Inc. | CFO | 2013–2019 | Led turnaround with improved revenue, profitability, and shareholder value |
| Guess?, Inc. | VP & European CFO | 2010–2013 | Led all European finance functions (FP&A, treasury, accounting, tax) |
| Mattel Inc. | Roles of increasing responsibility; VP Finance & Supply Chain (SEUR cluster) | 1997–2010 | Drove finance and supply chain leadership across France, Spain, Portugal, Italy |
External Roles
- None disclosed in DPZ filings for Reddy .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $495,865 | $682,692 | $710,385 |
| AIP Target (% of Salary) | 100% | 100% | 100% |
| AIP Actual Payout ($) | $336,150 | $728,155 | $763,952 |
| All Other Compensation ($) | $109,609 | $73,555 | $74,902 |
Annual base salary progression and AIP target confirmation:
| Executive | 2023 Base Salary | 2024 Base Salary | % Change | 2024 AIP Target |
|---|---|---|---|---|
| Sandeep Reddy | $685,000 | $718,000 | 4.8% | 100% of salary |
Performance Compensation
| AIP Framework (FY 2024) | Metric | Targeting approach | Actual | Payout |
|---|---|---|---|---|
| Annual cash bonus | Consolidated Adjusted EBITDA | Single-company metric with adjustments; threshold >90% required | Achievement: 100.64% of target | 106.4% of target (Reddy: $763,952) |
PSUs – Design and results (2022 grant, performance period ended 12/29/2024)
| PSU Component | Threshold | Target | Maximum | Actual | Payout as % of target |
|---|---|---|---|---|---|
| Cumulative Adjusted Total Segment Income (70% weight) ($MM) | $2,726.1 | $3,029.0 | $3,256.2 | $2,847.8 | 70.1% (interpolated) |
| Cumulative Global Retail Sales ex-FX (30% weight) ($MM) | $55,770.3 | $61,967.0 | $66,614.5 | $58,283.4 | 70.3% (interpolated) |
| Relative TSR modifier (vs S&P 500 for 2022 grant) | — | — | — | 24th percentile | −15% to earned shares |
| Final PSU payout (2022 grant) | — | — | — | — | 59.6% of target; vests March 10, 2025 |
PSU program going forward:
- 2023 and 2024 grants measure annual Incentive Adjusted EBITDA growth (70%) and annual global retail sales growth ex-FX (30%), averaged over three years, with ±25% TSR modifier vs S&P Composite 1500 Restaurants Sub-Index; payout 0–200% .
Equity Ownership & Alignment
| Item (as of 12/29/2024 unless noted) | Value |
|---|---|
| Total beneficial ownership (shares) | 11,146; <1% of class |
| Options exercisable within 60 days | 6,005 shares |
| DCP balance (Deferred Compensation Plan) | $925,639 |
| DCP 2024 executive contributions | $143,854 |
| Hedging/pledging policies | Hedging prohibited for all employees; anti-pledging applies to directors; executives subject to anti-hedging under Insider Trading Policy |
| Stock ownership guidelines | Other executives: 3× base salary; compliant for those past accumulation period |
Outstanding Equity & Vesting Pressure (12/29/2024 snapshot)
| Instrument | Quantity | Key dates / terms |
|---|---|---|
| RSUs (final tranche from 2022 grant) | 709 | Vest: March 10, 2025 |
| RSUs (2023 grant total) | 2,157 | Vest: 50% on March 10, 2025; 50% on March 10, 2026 |
| RSUs (2024 grant total) | 1,348 | Vest: one-third on March 11, 2025; 2026; 2027 |
| PSUs (earned from 2022) | 634 | Vests March 10, 2025 (final payout certified) |
| PSUs (2023 target) | 3,235 | Vests around March 10, 2026, subject to performance & TSR modifier |
| PSUs (2024 target) | 1,348 | Vests around March 11, 2027, subject to performance & TSR modifier |
| Stock Options (exercisable/unexercisable) | 2,459 / 1,230 at $397.18, exp. 4/1/2032 | Options vest ratably over 3 years; 10-year term |
| Stock Options (exercisable/unexercisable) | 3,546 / 7,094 at $300.16, exp. 3/10/2033 | Same |
| Stock Options (exercisable/unexercisable) | 0 / 4,278 at $443.90, exp. 3/11/2034 | Same |
Multi-year Compensation Mix
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Stock Awards ($) | $3,517,181 | $1,961,542 | $1,244,595 |
| Option Awards ($) | $421,985 | $970,900 | $598,364 |
| Total Compensation ($) | $5,880,790 | $4,416,844 | $3,392,197 |
Employment Terms
| Provision | Key term | Quantitative illustration (12/29/2024 scenario) |
|---|---|---|
| Severance (termination without cause or for good reason) | 1.5× base salary; pro-rata AIP at target; Company-paid medical premiums during severance; 6-month delay then monthly for next 12 months (Section 409A) | Severance: $1,077,000; Healthcare: $34,232; AIP target payout: $718,000 |
| Change-in-control (covered transaction under EIP) | Single-trigger equity acceleration: unvested RSUs and options vest in full; PSUs (2022-type) settle at greater of target or performance-to-date; PSUs (2023/2024-type) settle at target (with certified years used) | Equity acceleration value: $5,010,037; AIP target payout: $718,000; severance shown: $1,077,000 |
| Death/Disability | Life insurance equals base salary; pro-rata AIP at target; full option vesting and limited exercisability | Death equity vest value: $958,290; AIP target payout: $718,000 |
| Non-compete / Non-solicit | 24-month non-compete; non-solicit of employees, franchisees, vendors | |
| Clawback | DPZ Recoupment Policy compliant with Nasdaq/SEC; applies to cash and equity incentives |
Compensation Committee & Governance Context
- Peer group for benchmarking (unchanged for 2024): Bloomin’ Brands; Chipotle; Darden; Expedia; Hilton; Hyatt; IHG; Norwegian Cruise Line; Papa John’s; Restaurant Brands International; Royal Caribbean; Texas Roadhouse; Wayfair; Wendy’s; Wyndham; Yum! Brands .
- Say-on-pay support: 93.91% approval at 2024 annual meeting .
- Policies: anti-hedging across employees; anti-pledging for directors; no tax gross-ups on change-in-control payments; meaningful stock ownership guidelines; capped annual incentives .
Investment Implications
- Strong pay-for-performance alignment: AIP tied solely to Incentive Adjusted EBITDA and paid at 106.4% of target in FY24; PSUs blend profitability and growth with a sector-relative TSR modifier, and the FY22 cycle paid 59.6%, demonstrating sensitivity to performance and market-relative returns .
- Retention and insider selling pressure: A meaningful vesting wall in March 2025–2027 across RSUs and PSUs may drive periodic net-share settlements; option tranches vest ratably through 2026–2027, supporting retention with relatively high exercise prices ($300–$444) that align value creation with shareholder returns .
- Alignment and risk controls: Ownership guidelines (3× salary), anti-hedging, and clawback reduce misalignment risk; severance economics (1.5× salary plus healthcare and pro-rata AIP) and single-trigger equity acceleration under a covered transaction balance retention with transaction certainty, though single-trigger vesting is a potential dilution consideration in M&A contexts .
- Track record: Prior CFO roles at Six Flags and Guess involved turnarounds and post-pandemic stabilization, suggesting operational and financial discipline supporting DPZ’s “Hungry for MORE” strategy execution .