Stephanie B. Tillman
FLOWERS FOODSAbout Stephanie B. Tillman
Chief Legal Counsel and Corporate Secretary at Flowers Foods (FLO); Named Executive Officer (NEO) with 29 years at the company . 2024 company performance: net sales $5.103B, net income $248.1M, adjusted EBITDA $538.5M, adjusted diluted EPS $1.28 . Executive compensation program emphasizes pay-for-performance with multiple clawbacks, double-trigger change-of-control vesting, anti-hedging, and stock ownership guidelines (Chief Legal Counsel guideline = 3x base salary) .
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary (paid) ($) | 443,635 | 483,421 | 542,648 |
| Base Salary Rate at Year-End ($) | — | 495,550 | 560,000 (effective 3/31/2024) |
| Target Annual Incentive (% of Base) | — | — | 70% |
Performance Compensation
Annual Cash Incentive Plan (FY 2024)
| Metric | Weighting | Target | Actual | Payout % | Weighted Payout % |
|---|---|---|---|---|---|
| Adjusted EBITDA | 70% | $541M | $539M | 97.9% | 68.53% |
| Net Revenue | 30% | $5.15B | $5.10B | 93.4% | 28.02% |
| Final Payout | — | — | — | — | 96.6% |
| Annual Bonus Outcome | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Non-Equity Incentive Plan Compensation ($) | 173,344 | 191,536 | 367,777 |
Long-Term Equity Awards (granted for FY 2024 program on 12/31/2023)
| Award Type | Grant Date | Target # Shares | Threshold # | Max # | Grant-Date Fair Value ($) |
|---|---|---|---|---|---|
| ROIC-based Performance Shares | 12/31/2023 | 14,030 | 7,015 | 21,045 | 315,815 |
| TSR-based Performance Shares | 12/31/2023 | 14,030 | 1,754 | 28,060 | 365,705 |
| Time-based RSUs (3-year ratable vest) | 12/31/2023 | 12,030 | — | — | 270,795 |
Key terms:
- RSUs vest in substantially equal installments on each of the first three anniversaries of grant; accelerated upon death/disability; retirement eligibility at 55+ with age+service ≥65 and ≥1 year post-grant; double-trigger change-of-control vesting applies .
- Performance Shares split 50% ROIC vs. WACC and 50% relative TSR; ROIC vesting scale: 0%/<150bps, 50%/150bps, 100%/300bps, 150%/≥450bps; TSR measured vs a defined peer group; measurement periods generally through FY 2026 with vest after 2026 10-K filing (no later than 3/15/2027) .
Equity Vesting Activity (FY 2024 realized)
| Metric | FY 2024 |
|---|---|
| Shares acquired on vesting (#) | 20,164 |
| Value realized on vesting ($) | 461,756 |
Equity Ownership & Alignment
| Ownership Item | Value |
|---|---|
| Beneficial Ownership (# shares, 3/6/2025) | 69,045 |
| Percent of Class | * (less than 1%) |
| Stock Ownership Guideline (Chief Legal Counsel) | 3x base salary |
| Guideline Compliance Status | Each NEO is in compliance, on track, or has a committee waiver |
| Anti-Hedging Policy | Hedging prohibited for executives and directors |
Outstanding equity awards as of 12/28/2024:
| Award Type | Grant Date | Unearned/Unvested (#) | Payout/Market Value ($) |
|---|---|---|---|
| ROIC PS (2024 program) | 12/31/2023 | 21,045 (max disclosure basis) | 430,791 |
| TSR PS (2024 program) | 12/31/2023 | 28,060 (max disclosure basis) | 574,388 |
| RSUs (2024 program) | 12/31/2023 | 12,030 | 246,254 |
| ROIC PS (2023 program) | 1/1/2023 | 16,913 | 346,209 |
| TSR PS (2023 program) | 1/1/2023 | 13,530 | 276,959 |
| ROIC PS (2022 program; earned) | 1/2/2022 | 12,512 | 256,121 |
| TSR PS (2022 program; earned) | 1/2/2022 | 1,326 | 27,143 |
Note: 2022 PS payout factors were ROIC 125% and TSR 13.25% for the full performance periods .
Deferred compensation (alignment and retention tool):
| Item | FY 2024 Amount ($) | EDCP Balance at 12/30/2024 ($) |
|---|---|---|
| Executive Contributions | 30,963 | 343,935 |
| Company Contributions | 32,685 | — |
| Above-Market EDCP Earnings | 4,921 | — |
Employment Terms
| Provision | Term |
|---|---|
| Employment Agreement | None (company policy; no employment agreements) |
| Clawbacks | NYSE-compliant restatement clawback (mandatory where applicable); supplemental clawback for detrimental activity, errors, and pre-10/2/2023 awards |
| Anti-Hedging | Prohibited for executives/directors |
| Change-of-Control (COC) | Double-trigger equity vesting; COC plan with market-appropriate severance; no excise tax gross-ups; cash severance capped at ≤2.99x salary+target bonus without shareholder approval |
| Restrictive Covenants | Non-compete, non-solicit, trade secret protection in COC plan |
COC economics (illustrative as if event on 12/27/2024; closing price $20.47):
| Scenario | Cash Severance ($) | Equity Vesting ($) | Other Benefits ($) | Total ($) |
|---|---|---|---|---|
| Qualifying Termination in Connection with COC | 1,904,000 | 1,449,294 | 61,460 | 3,414,755 |
| Change of Control without Termination | — | — | — | — |
Multi-Year Compensation Summary (NEO)
| Component ($) | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary | 443,635 | 483,421 | 542,648 |
| Bonus | — | — | — |
| Stock Awards | 594,994 | 842,378 | 952,316 |
| Non-Equity Incentive Plan | 173,344 | 191,536 | 367,777 |
| Nonqualified Deferred Comp Earnings | 4,139 | 4,555 | 4,921 |
| All Other Compensation | 41,787 | 52,055 | 53,385 |
| Total Compensation | 1,257,899 | 1,573,945 | 1,921,047 |
Compensation Structure Analysis
- Equity mix shifted to incorporate RSUs (30%) alongside performance shares (70%) versus prior years’ 100% performance shares, improving retention line-of-sight while maintaining performance emphasis through ROIC and TSR metrics .
- Annual incentive design uses adjusted EBITDA (70%) and net revenue (30%) with widened EBITDA scale; 2024 payout at 96.6% indicates near-target performance despite soft demand .
- Program guardrails: capped incentive payouts, dual clawbacks, double-trigger COC vesting, anti-hedging, and no tax gross-ups or employment agreements, aligning with shareholder-friendly practices .
Investment Implications
- Alignment: Significant portion of compensation at-risk via ROIC vs. WACC and relative TSR; stock ownership guideline at 3x salary and anti-hedging policy reduce misalignment risk .
- Vesting calendar: RSU tranches from 12/31/2023 grant continue vesting on each of the next two anniversaries (anticipated 12/31/2025 and 12/31/2026), and performance share payouts hinge on FY2026 outcomes—monitor Form 4 activity around these dates for selling pressure .
- Retention/Coverage: Double-trigger COC and non-compete/non-solicit covenants plus EDCP participation support retention; 2024 realized vesting value ($461,756) suggests meaningful equity monetization cadence but not excessive relative to total comp .
- Pay-for-performance integrity: 98% say-on-pay support, explicit numeric targets, and clawbacks reduce governance red flags; no pledging disclosure found, and no employment agreement reduces entrenchment risk .