Summary
Dollar Tree, Inc. (DLTR) announced a special performance award granted to its Chief Merchandising Officer—Family Dollar, Lawrence Gatta, Jr. This award, comprised of performance-based restricted stock units (PSUs), is designed to incentivize the executive and align his interests with the company's strategic direction, particularly concerning the Family Dollar business segment. The PSUs have a target value of $1.5 million, equivalent to 14,060 shares, with vesting scheduled for the third anniversary of the grant, contingent upon continued service.
Key Highlights
- 1Special performance award granted to Lawrence Gatta, Jr., Chief Merchandising Officer—Family Dollar.
- 2Award consists of performance-based restricted stock units (PSUs).
- 3Target value of the award is $1.5 million, equating to 14,060 shares.
- 4Vesting is tied to continued service and is scheduled for the third anniversary of the grant date (July 5, 2024).
- 5Earlier vesting at target is possible upon death, disability, or retirement.
- 6Potential for vesting to occur prior to the third anniversary, at target or up to 166.67% of target, based on the Board of Directors' assessment of strategic review objectives for the Family Dollar business segment.
- 7Award is made under the Company's 2021 Omnibus Incentive Plan.
Frequently Asked Questions
Lawrence Gatta, Jr., the Chief Merchandising Officer—Family Dollar, received a special performance award in the form of performance-based restricted stock units (PSUs). This award is subject to the standard Performance-Based Restricted Stock Unit Agreement under Dollar Tree's 2021 Omnibus Incentive Plan.
The PSUs have a target value of $1.5 million, which corresponds to 14,060 shares based on the grant date value. The target vesting date is the third anniversary of the grant (July 5, 2027), provided the executive remains in service. Early vesting at target is also stipulated for events like death, disability, or retirement.
Yes, the PSUs can vest earlier than the third anniversary, potentially at target or up to 166.67% of the target value. This accelerated vesting is contingent upon the Company's Board of Directors determining that specific performance objectives related to the strategic review of the Family Dollar business segment have been achieved.
This award is significant as it directly links executive compensation to the strategic performance and potential outcomes of the Family Dollar business segment, including a review of strategic alternatives. The structure suggests an effort to retain key leadership and incentivize performance during a potentially transformative period for Family Dollar.