Axel Schwan
President, Tim Hortons Canada & U.S. at Restaurant Brands International Limited Partnership
Executive
About Axel Schwan
President, Tim Hortons Canada & U.S., appointed October 2019; RBI tenure 13 years (joined 2011). Previously Global CMO for Burger King (2014) and Tim Hortons (2017); earlier marketing roles at Unilever and Danone; age 49 in 2023 . 2024 company performance context: TSR index 122 vs peer 161, net income $1,445m, Adjusted Operating Income $2,402m; AOI is the primary compensation-linked measure used in 2024 plans . 2024 Tim Hortons scorecard for Schwan: business performance assessed at 84.1% of target; individual performance 90.1%; annual bonus paid at 85.6% of target ($695,196) .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| RBI (Burger King EMEA) | VP, Marketing & Communications, EMEA | 2011–Jan 2014 | Regional brand marketing leadership |
| Burger King | Global Chief Marketing Officer | Jan 2014–Oct 2017 | Global brand stewardship and growth initiatives |
| Tim Hortons | Global Chief Marketing Officer | Oct 2017–Oct 2019 | Led brand transformation and marketing |
| Tim Hortons (RBI) | President, Canada & U.S. | Oct 2019–present | P&L leadership; franchisee profitability above target in 2024 |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Schwan family restaurant business | Co-leader | — | Operated family restaurant enterprise |
| Unilever (Germany) | Marketing roles | — | Fast-moving consumer goods brand experience |
| Danone (Germany) | Marketing roles | — | Consumer brand management experience |
Fixed Compensation
| Year | Base Salary ($) | Target Bonus (%) | Target Bonus ($) | Target Cash Comp ($) |
|---|---|---|---|---|
| 2024 | 625,000 | 130% | 812,500 | 1,437,500 |
| Year | Salary Earned ($) | Non-Equity Incentive ($) | Stock Awards ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|
| 2024 | 600,572 | 695,196 | 5,147,115 | 574,285 | 7,017,168 |
| 2023 | 548,884 | 895,261 | 6,440,533 | 575,119 | 8,459,797 |
Notes:
- 2024 LTI target reduced from $5,000,000 to $4,000,000 as part of moderated awards vs 2023 .
- 2024 “All Other” includes company retirement contributions ($15,531), tax equalization ($328,106), expatriate benefits ($224,114), and other ($6,534) .
Performance Compensation
Annual Bonus – Design and Outcomes
| Year | Metric | Weighting | Target (plan) | Actual performance | Payout impact |
|---|---|---|---|---|---|
| 2024 | Business Performance (Comp sales, NRG, franchisee profitability, Adjusted Operating Income) | 75% | Committee-approved targets (threshold modified to 0% mid-year) | Assessed at 84.1% of target for Tim Hortons | Contributed to 85.6% of target total bonus payout |
| 2024 | Individual KPIs | 25% | 100% target max; qualitative + quantitative KPIs | Assessed at 90.1% of target | Part of 85.6% total payout |
| 2023 | RBI Organic Adj. EBITDA | 10% | 9.5% target growth | 120% achievement | Positive |
| 2023 | Business Unit Adj. EBITDA (TH) | 20% | Brand-specific target | 102% achievement | Modest positive |
| 2023 | Net Restaurant Growth (NRG) | 10% | TH US&C target 50 openings | 0% achievement | Negative |
| 2023 | Comparable Sales | 25% | TH US&C target 5.4% | 194% achievement | Strong positive |
| 2023 | Franchisee Profitability | 10% | TH US&C target $250m | 200% achievement | Strong positive |
| 2023 | Individual KPIs | 25% | 100% cap | 98% achievement | Positive |
| 2023 | Actual bonus paid | — | — | — | $895,261 |
Threshold policy changes (2024): Committee extended performance curve to 0% threshold amid macro headwinds to better reflect relative performance; targets still set at year start .
Equity Incentives – PSUs and RSUs
| Grant | Type | Metric | Target shares (#) | Threshold/Max (#) | Grant date | Vesting | Fair value ($) |
|---|---|---|---|---|---|---|---|
| 2024 | PSUs | 3-yr relative TSR vs S&P 500 (linear between 25th–50th and 60th–85th; cap at 100% if TSR negative) | 53,064 | 26,532 / 79,596 | 02/23/2024 | Cliff vest 03/15/2027 | 4,139,963 |
| 2024 | Matching RSUs (Bonus Swap) | Time-based; forfeited if Investment Shares sold pre-vest | 13,361 | — | 02/23/2024 | Per award schedule | 1,007,152 |
| 2022 (performance period ended 2024) | PSUs | 3-yr CAGR SSS (30%), NRG (20%), EBITDA (50%) + TSR multiplier | — | — | — | Vested 02/25/2025 | Performance: SSS 150% (capped 135.8%), NRG 77.3%, EBITDA 128.2%, TSR multiplier 1.09x |
Bonus Swap participation (Feb 2025): Schwan elected to swap 50% of 2024 bonus ($347,598) into Investment Shares, receiving matching RSUs; reported SCT amount for 2023 matching RSUs granted Feb 2024 was $1,007,152 .
Equity Ownership & Alignment
Beneficial Ownership
| Holder | Common Shares (#) | % of Class | Partnership Units (#) | Total Beneficial (#) |
|---|---|---|---|---|
| Axel Schwan | 283,760 | <1% (asterisk per table) | — | 283,760 |
- Stock ownership guidelines: CEO 12x salary; Pay Bands 9–10: 6x salary; RSUs (net of 45% tax) count; unvested PSUs and unexercised options no longer count (effective Mar 1, 2025); must retain 50% of net shares until compliant; all NEOs met guidelines as of Feb 28, 2025 .
- Hedging/pledging prohibited for employees including NEOs; trading windows and pre-clearance apply .
Outstanding Equity Awards (as of 12/31/2024)
| Instrument | Grant date | Status | Quantity (#) | Exercise price ($) | Expiration | Market value ($) |
|---|---|---|---|---|---|---|
| Stock options | 02/23/2018 | Exercisable | 40,000 | 58.44 | 02/22/2028 | — |
| Stock options | 02/22/2019 | Exercisable | 30,000 | 64.75 | 02/21/2029 | — |
| Stock options | 02/21/2020 | Unexercisable | 56,000 | 66.31 | 02/20/2030 | — |
| RSUs | 02/21/2020 | Unvested | 47,332 | — | — | 3,085,078 |
| RSUs | 02/25/2022 | Unvested | 3,816 | — | — | 248,707 |
| RSUs | 04/20/2022 | Unvested | 59,338 | — | — | 3,867,653 |
| RSUs | 02/22/2023 | Unvested | 8,287 | — | — | 540,167 |
| RSUs | 02/23/2024 | Unvested | 10,264 | — | — | 668,994 |
| PSUs (unearned) | 02/22/2023 | Unearned | 77,981 | — | — | 5,082,789 |
| PSUs (unearned) | 02/23/2024 | Unearned | 27,175 | — | — | 1,771,255 |
Note: Awards valued at $65.18 per share (12/31/2024 close) . Company policy bans pledging/hedging; implies no pledged shares .
Employment Terms
- Severance plan: 24 weeks of base pay for Schwan under RBI Severance Plan; no excise tax gross-ups; no single-trigger change-in-control acceleration .
- PSU termination provisions (2022–2024 awards): For termination on or after one year before vesting date without cause or retirement, deemed 67% vested; death or disability vests one-third on each of first through third anniversary of grant; otherwise forfeited .
- Change-in-control mechanics: Options vest fully upon termination without cause within 12 months after a change in control under 2014 Omnibus Plan; RSU/PSU treatment per award agreements and plan terms .
- Clawback: Amended Nov 30, 2023 to require recoupment of incentive-based compensation after Oct 2, 2023 in event of restatement; pre-2023 policy applied to intentional misconduct within rolling two-year period. All awards since Jan 1, 2017 subject to clawback .
- Insider trading: Prohibits short-selling, hedging, margin accounts, and pledging; trading only in pre-established windows with legal pre-clearance .
Termination/Change-in-Control Scenario Values (as of 12/31/2024 assumptions)
| Scenario | Salary ($) | Bonus ($) | Stock Units ($) | Benefits continuation ($) | Total ($) |
|---|---|---|---|---|---|
| Death | — | 695,196 | 6,671,339 | — | 7,366,535 |
| Disability | — | 695,196 | 6,054,324 | — | 6,749,520 |
| Termination without cause | 312,500 | 695,196 | 3,434,537 | 3,314 | 4,445,547 |
| Termination without cause after change-in-control | 312,500 | 695,196 | 15,992,122 | 3,314 | 17,003,132 |
Note: 2025 table shows no option valuation amounts for Schwan under scenarios (likely intrinsic value zero at the valuation date) .
Investment Implications
- Pay-for-performance and equity-heavy mix: 2024 target TDC $6.35m with $4.0m PSUs and ~$0.91m matching RSUs; average of 89% of NEO TDC performance/equity-based; aligns incentives to TSR/AOI and brand scorecards .
- Strong retention design: Bonus Swap requires executives to hold purchased shares or forfeit matching RSUs; PSU cliff vesting with 3-year TSR caps; PSU termination vests only 67% near vest date, otherwise forfeited; plus insider trading window limits—reduces near-term sell pressure .
- Alignment and risk controls: Ownership guidelines met; hedging/pledging prohibited; clawback tightened in 2023; no excise tax gross-ups or single-trigger acceleration—shareholder-friendly .
- Execution track record: 2023 TH comp sales and franchisee profitability exceeded maxima while NRG missed, reflecting focus on quality and profitability; 2024 business performance at 84.1% indicates resilient operations despite macro headwinds—bonus paid at 85.6% target .
- Change-in-control economics: Significant stock unit value acceleration under CIC termination ($16.0m), implying meaningful retention risk premium if a strategic transaction occurs; options carry limited current intrinsic value at 2024 year-end .