Lisa Smith
Reynolds Consumer ProductsAbout Lisa Smith
Lisa Smith is President of Hefty Waste & Storage at Reynolds Consumer Products, a role she has held since 2020 after joining the company in 2009; she previously served as VP Marketing (2015–2018) and SVP Marketing (2018–2020) across Hefty and Reynolds Cooking & Baking. She holds a B.S. in Marketing (University of Illinois) and an MBA from Northwestern’s Kellogg School, with prior CPG roles at Mars, Sara Lee, and Sunstar/GUM . As of March 1, 2024, she was age 55 . Company performance tying to her incentive metrics shows net income rose from $258m (2022) to $298m (2023) and Adjusted EBIT from $429m to $512m; the PVP table also reports cumulative TSR since listing at 105 (2023) and 109 (2024) vs peer TSR 120 (2023) and 141 (2024) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Reynolds Consumer Products | President, Hefty Waste & Storage | 2020–present | P&L leadership for Waste & Storage segment |
| Reynolds Consumer Products | SVP Marketing, Reynolds Cooking & Baking | 2018–2020 | Led brand/marketing for Cooking & Baking |
| Reynolds Consumer Products | VP Marketing, Hefty Waste & Storage | 2015–2018 | Growth and category leadership in Waste & Storage |
| Reynolds Consumer Products | Marketing roles | 2009–2015 | Various marketing leadership roles |
| Mars; Sara Lee; Sunstar/GUM | Marketing, sales, category management | Not disclosed | CPG commercial experience |
External Roles
- No public company directorships or external board roles disclosed for Lisa Smith .
Fixed Compensation
| Metric | 2022 | 2023 |
|---|---|---|
| Base Salary ($) | $467,917 | $497,917 |
| Target Bonus % of Salary | — | 65% |
| Actual Annual Incentive Paid ($) | $197,695 | $543,725 |
| All Other Compensation ($) | $51,986 | $69,299 |
| Total Compensation ($) | $1,359,070 | $1,786,364 |
Performance Compensation
Annual Incentive Program (AIP) – 2023 design and outcome
| Metric | Weight | Target | Actual | Payout Attainment | Contribution to Total |
|---|---|---|---|---|---|
| Adjusted EBIT Growth vs 2022 | 80% | $438m (102% of FY22) | $512m (119% of FY22) | 200% | 160% |
| Revenue Growth vs 2022 | 20% | $3,912m (102.5% of FY22) | $3,756m (98% of FY22) | 39% | 8% |
| Total AIP Payout Level | — | — | — | — | 168% of target |
AIP target percentages for NEOs: Business unit presidents 65% of salary; Lisa Smith was at 65% .
Long-Term Incentive (LTI) – 2023 grants and 2023 performance determination
| Award Element | Grant Date | Target/Granted | 2023 Performance Metric | Target | Actual | Earned | Vesting |
|---|---|---|---|---|---|---|---|
| RSUs | 2/1/2023 | 11,326 RSUs; grant date fair value $337,515 | Time-based | — | — | — | 1/3 each year starting 1st anniversary |
| PSUs | 2/1/2023 | 11,325 PSUs target; grant date fair value $337,485; max $674,970 | 50% Adjusted EPS growth; 50% Free Cash Flow | $1.32 EPS; $410m FCF | $1.42 EPS; $540m FCF | 175% of target (19,819 PSUs earned) | Cliff vest at 3rd anniversary (2/1/2026) |
2023 RSU/PSU vesting adheres to standard terms; no options are outstanding for NEOs .
Equity Ownership & Alignment
Beneficial Ownership and Guidelines
| Item | Detail |
|---|---|
| Shares beneficially owned (as of 3/1/2024) | 14,450 (<1% of shares outstanding) |
| Stock ownership guideline | Business Unit Presidents: 3x annual base salary; count RSUs/earned PSUs; unearned PSUs/options excluded |
| Anti-hedging/pledging | Hedging and pledging of company securities prohibited |
Outstanding Equity Awards (as of 12/31/2023)
| Grant | Type | Unvested Units (#) | Schedule/Notes | Market Value ($) |
|---|---|---|---|---|
| 2/1/2021 | RSUs | 2,689 | Vested 2/1/2024 | $72,173 |
| 2/1/2022 | RSUs | 7,108 | 50% vests 2/1/2024; 50% vests 2/1/2025 | $190,779 |
| 2/1/2023 | RSUs + earned PSUs | 31,145 (11,326 RSUs; 19,819 PSUs) | RSUs 1/3 annually; PSUs (175% earned) vest 2/1/2026 | $835,932 |
Deferred Compensation (nonqualified plan, 2023)
| Component | Amount ($) |
|---|---|
| Executive contributions | $109,143 |
| Company contributions | $29,249 |
| Aggregate earnings | $90,042 |
| Aggregate balance at FYE 2023 | $728,974 |
Employment Terms
| Provision | Term |
|---|---|
| Employment agreement | Yes; provides severance and restrictive covenants |
| Severance (without cause, pre-Sale of Business) | 12 months base salary; 12 months COBRA assistance |
| Severance (within 12 months post-Sale of Business, double trigger incl. Good Reason) | 24 months base salary + prorated target annual incentive; 12 months COBRA assistance |
| Restrictive covenants | Non-compete and non-solicitation during employment and 1 year post-termination |
| Equity change-in-control vesting | Equity plan provides single-trigger vesting and settlement upon Change in Control; PSUs vest based on likely/actual performance determined by CNG Committee |
| Clawback | Nasdaq-compliant recoupment policy covering incentive-based compensation for accounting restatements (3 fiscal years lookback) |
| Anti-hedging/pledging | Prohibited |
Compensation Structure Analysis
- Pay-for-performance alignment: AIP and PSUs heavily weighted to Adjusted EBIT, revenue, Adjusted EPS, and Free Cash Flow, with capped and threshold levels and interpolation, evidencing focus on profitability and cash generation .
- Mix shift and year-over-year changes: For Lisa Smith, base rose to $497,917 (2023) from $467,917 (2022), stock awards rose to $675,000 from $641,242, and AIP payout increased to $543,725 from $197,695, reflecting stronger AIP performance in 2023 (168% payout vs lower 2022 payout) .
- Governance practices: No excise tax gross-ups, anti-hedging/pledging, clawback policy, and stock ownership guidelines in place .
Say-on-Pay & Peer Benchmarking
- Say-on-Pay approval: ~99% support in 2023 vote; ~99% support again at 2024 annual meeting, prompting no material changes to the program .
- Compensation peer group: Includes Clorox, Church & Dwight, Spectrum Brands, Sonoco, Silgan, Sealed Air, Hasbro, O-I Glass, Edgewell, Greif, Aptar, Central Garden & Pet, The Scotts Miracle-Gro Company, Helen of Troy, Yeti, Pactiv Evergreen, Energizer, Snap-on .
- Target positioning: Committee aims around 50th percentile of peer group for each compensation element, adjusted for individual performance .
Investment Implications
- Incentive levers: With AIP driven by Adjusted EBIT and revenue and PSUs driven by Adjusted EPS and Free Cash Flow, compensation motivates margin expansion and cash generation—key drivers for REYN’s equity story .
- Ownership alignment and selling pressure: Beneficial ownership is modest (<1%), but RSUs/earned PSUs vest on scheduled dates through 2026, creating potential supply overhang during vest windows; anti-hedging/pledging mitigates alignment risks .
- Transaction risk: Single-trigger vesting under the equity plan could accelerate awards at change-in-control, increasing deal-related dilution/cost; severance economics (2x salary+bonus post-Sale of Business) create predictable transition costs for business unit leaders .
- Governance quality: Strong shareholder support (~99% say-on-pay), clawback policy, and ownership guidelines indicate disciplined compensation governance, reducing headline risk .