Maureen "Molly" M. Gellerman
FIVE BELOWAbout Maureen "Molly" M. Gellerman
Maureen “Molly” M. Gellerman, 53, is Chief Human Resources Officer (CHRO) at Five Below, promoted in February 2025 after joining as VP of Human Resources in August 2022. She previously served as VP of HR at Domino’s (2016–2022) and held senior HR roles at Target for 15 years; she also serves on the board of the Five Below Foundation, a 501(c)(3) supported by the company . Pay-for-performance alignment at Five Below relies on net sales and post-incentive adjusted operating income (AOI) for annual bonuses and PRSUs tied to multi-year AOI and relative TSR; 2024 outcomes were mixed with net income of $253.6M and post-incentive AOI of $325.8M, while 2022 PRSUs paid ~7% of target (AOI 0%, TSR average 13.8%)—indicating rigor in performance hurdles .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Domino’s | Vice President of Human Resources | 2016–2022 | Led HR for a global QSR brand during growth and transformation |
| Target Corporation | Senior Director of Human Resources | 15 years (dates not disclosed) | Senior HR leadership at a national retailer; talent and org development at scale |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Five Below Foundation (501(c)(3)) | Board member | Not disclosed | Governance of corporate foundation and community grantmaking |
Fixed Compensation
- Individual base salary and target bonus for Ms. Gellerman are not disclosed (she is not a Named Executive Officer in the proxy). Company-wide design features include annual base salary set for market competitiveness and annual incentive eligibility for executives, with targets approved by the Compensation Committee .
Performance Compensation
Annual incentive design (FY2024) and realized outcomes (company-level):
| Metric | Weight | Threshold (25% payout) | Target (100%) | Maximum (200%) | Actual | Achievement (% of Target) | Weighted payout (% of Target) |
|---|---|---|---|---|---|---|---|
| Net Sales ($MM) | 50% | 3,864.7 | 4,084.2 | 4,210.6 | 3,876.5 | 32% | 16% |
| Post-Incentive Adjusted Operating Income ($MM) | 50% | 380.0 | 447.6 | 481.4 | 325.8 | 0% | 0% |
- Long-term incentives for executives emphasize PRSUs (historically 75% of LTI value; moved to 60% in 2025) based 50% on 3-year cumulative adjusted operating income and 50% on relative TSR versus a retail peer set; RSUs provide retention value with multi-year vesting .
- 2022 PRSU outcome: AOI component 0% (cumulative AOI $1.054B vs $1.621B target), TSR averaged 13.8% of target across four periods; total ~7% of target, underscoring pay-for-performance rigor .
Equity Ownership & Alignment
- Stock ownership guidelines: Other Executive Officers (which would include the CHRO) must hold Company stock equal to 2x base salary; five years to achieve; executives must retain 50% of net after-tax shares from vesting/exercise until guideline met. As of Jan 2, 2025, all covered executives were in compliance .
- Hedging and pledging: Prohibited. Short sales and derivatives transactions are banned; pledging and margin accounts are prohibited—reducing misalignment and financing risk .
- Clawbacks: Dodd-Frank-compliant policy; mandatory recovery for material restatements; discretionary recovery for materially inaccurate metrics or specified misconduct (willful misconduct, gross negligence causing material harm, fraud/misappropriation) over a prior three-year lookback .
- Typical vesting mechanics:
- Annual RSUs (2024 design): 50% at 2nd anniversary, 25% at 3rd and 4th anniversaries; 2025 awards shift to equal annual vest over 3 years .
- PRSUs: 3-year performance period, 0–200% payout, accelerated vesting at target for death/disability and change-in-control mechanics as specified; retirement features apply to annual awards for eligible executives (2024 and later) .
- Individual share ownership for Ms. Gellerman is not disclosed in the security ownership table (table includes directors and NEOs) .
Employment Terms
- Tenure: Joined August 2022 (VP HR); promoted to CHRO in February 2025 .
- Severance/CoC: The proxy details severance arrangements for select NEOs (CEO, COO, CFO, Chief Retail Officer, CAO) and general plans, but does not specifically disclose Ms. Gellerman’s severance/change-in-control terms. Executive officers generally are subject to restrictive covenants; hedging/pledging prohibitions apply company-wide .
Additional Company Context Relevant to CHRO Incentives
- Say-on-Pay approval was ~96% at the June 2024 annual meeting, signaling broad shareholder support for compensation design .
- Compensation governance: Independent Compensation Committee (Devine, Chair), with Meridian as independent advisor; peer group includes specialty/value retailers (e.g., Lululemon, Ulta, Burlington, Williams-Sonoma, RH, Dollar chain peers added for TSR PRSUs) .
- Policy enhancements effective 2025: LTI mix shifted to 40% RSU / 60% PRSU and RSU vesting moved to three equal annual tranches to strengthen retention and align with market practices .
Investment Implications
- Alignment strong; retention risk moderated: CHRO is covered by robust ownership guidelines (2x salary), a mandatory share-holding requirement, and bans on hedging/pledging—promoting long-term alignment and reducing leverage risk. The company’s clawback coverage further limits adverse risk-taking incentives .
- Performance sensitivity: With annual bonuses tied to net sales and post-incentive AOI, and PRSUs tied to 3-year AOI and relative TSR, realized compensation is sensitive to profitable growth and shareholder returns; recent PRSU outcomes (~7% for 2022 grants) confirm downside variability when targets are missed .
- Vesting/selling pressure watch-outs: Executive RSUs generally vest on annual anniversaries (2025 awards: 1/2/3 years), and PRSUs cliff-vest after a 3-year period; while Ms. Gellerman’s specific grants aren’t disclosed, standard cycles can create trading windows around vest dates—subject to insider windows and holding requirements .
- Governance and shareholder support: A 96% Say-on-Pay outcome and independent comp oversight suggest low near-term governance risk around pay, aiding stability in leadership incentives during CEO transition and organizational build-out under the new CHRO .