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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No.   )
Filed by the Registrant ☒
Filed by a Party other than the Registrant ☐
Check the appropriate box:

Preliminary Proxy Statement

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

Definitive Proxy Statement

Definitive Additional Materials

Soliciting Material under § 240.14a-12
Floor & Decor Holdings, Inc.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):

No fee required.

Fee paid previously with preliminary materials.

Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11

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[MISSING IMAGE: lg_floordecor-4c.jpg]
2500 Windy Ridge Parkway, SE
Atlanta, GA 30339
March 19, 2024
Dear Stockholder,
You are cordially invited to attend the Annual Meeting of Stockholders of Floor & Decor Holdings, Inc. (the “Company”) to be held on Wednesday, May 8, 2024 at 11:00 A.M. Eastern Time. The Annual Meeting will be held by remote communication in a virtual format at: http://web.lumiagm.com/271307858. To be admitted to the Annual Meeting at http://web.lumiagm.com/271307858, you must log in using the meeting password and the 11-digit control number that can be found on the proxy card, voting instruction form or notice of internet availability you received previously. If you hold your shares through an intermediary, such as a bank, broker or other nominee, you must register in advance to attend the Annual Meeting. To register, you must submit proof of your “legal proxy” obtained from your bank, broker or nominee reflecting your Company holdings, along with your name and email address, to Equiniti Trust Company, LLC: (1) by email to Equiniti Trust Company at proxy@Equiniti.com; (2) by facsimile to (718) 765-8730 or (3) by mail to Equiniti Trust Company, LLC, Attn: Proxy Tabulation Department, 55 Challenger Rd, Ridgefield Park, NJ 07660. Please reference “Floor & Decor 2024 Annual Meeting May 8, 2024” in the subject line. Obtaining a “legal proxy” may take several days and stockholders are advised to register as far in advance as possible. Requests for registration must be labeled as “Legal Proxy” and be received no later than 5:00 P.M. Eastern Time, on May 1, 2024. You will receive a confirmation email from Equiniti Trust Company, LLC of your registration.
During the Annual Meeting, if you were a stockholder of record as of the record date, you will be able to vote by following the instructions on the virtual meeting website at http://web.lumiagm.com/271307858. If you hold shares of the Company’s common stock in “street name” through a broker, bank or other institution or nominee, you must follow the instructions provided by your broker or other financial institution regarding how to instruct your broker or financial institution to vote your shares.
The agenda for the Annual Meeting includes:

the election of eleven directors for a one-year term expiring in 2025 (Proposal 1);

the ratification of Ernst & Young LLP as independent auditors for our 2024 fiscal year (Proposal 2);

an advisory vote to approve the compensation paid to our named executive officers for the fiscal year ended December 28, 2023 (commonly known as a “say-on-pay” proposal) (Proposal 3); and

an advisory vote on the frequency of advisory votes on executive compensation (commonly known as a “say-on-frequency proposal”) (Proposal 4).
The Company’s Board of Directors recommends a vote FOR the election of the eleven directors or director nominees, FOR the ratification of the appointment of Ernst & Young LLP as our independent auditors, FOR the approval, on an advisory basis, of compensation paid to our named executive officers for the fiscal year ended December 28, 2023 and to recommend holding the say-on-pay vote ONCE A YEAR.
Your interest in the Company and your vote are very important to us. The enclosed proxy materials contain detailed information regarding the business that will be considered at the Annual Meeting. It is important that all stockholders participate in the affairs of the Company, regardless of the number of shares owned. Accordingly, we encourage you to read the proxy materials and vote your shares as soon as possible. You may authorize your proxy via the Internet or, if you received a paper copy of the proxy materials, by mail by completing and returning the proxy card. On behalf of the Company, I would like to express our appreciation for your ongoing interest in Floor & Decor Holdings, Inc.
Very truly yours,
Thomas V. Taylor
Chief Executive Officer
 

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FLOOR & DECOR HOLDINGS, INC.
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON MAY 8, 2024
TIME
11:00 A.M. Eastern Time on Wednesday, May 8, 2024
PLACE
http://web.lumiagm.com/271307858
ITEMS OF BUSINESS
(1)
To elect eleven directors for a one-year term expiring at the 2025 annual meeting of stockholders once their respective successors have been duly elected and qualified or until their earlier resignation or removal (Proposal 1).
(2)
To ratify the appointment of Ernst & Young LLP as independent auditors for our 2024 fiscal year (Proposal 2).
(3)
To approve, by non-binding vote, the compensation paid to our named executive officers for the fiscal year ended December 28, 2023, as disclosed in these proxy materials (commonly known as a “say-on-pay” proposal) (Proposal 3).
(4)
To recommend, by non-binding vote, the frequency of future advisory votes on executive compensation (commonly known as a “say-on-frequency” proposal) (Proposal 4).
(5)
To transact such other business as may properly be brought before the Annual Meeting or any adjournment or postponement thereof.
RECORD DATE
You are entitled to vote only if you were a stockholder of record at the close of business on March 13, 2024.
PROXY VOTING
It is important that your shares be represented and voted at the Annual Meeting. Whether or not you plan to attend the Annual Meeting, we urge you to transmit your voting instructions online at www.voteproxy.com, or to complete and return a proxy card (no postage is required).
Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to be Held on May 8, 2024: As permitted by rules adopted by the Securities and Exchange Commission, rather than mailing a full paper set of these proxy materials, we are mailing to many of our stockholders only a notice of internet availability of proxy materials containing instructions on how to access these proxy materials and authorize their respective proxy votes online. This proxy statement, our 2023 Annual Report on Form 10-K and the proxy card are available at www.voteproxy.com. You will need your notice of internet availability or proxy card to access these proxy materials.
March 19, 2024
David V. Christopherson
Executive Vice President, Chief Administrative Officer & Chief Legal Officer
 

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[MISSING IMAGE: lg_floordecor-4c.jpg]
2500 Windy Ridge Parkway, SE
Atlanta, GA 30339
PROXY SUMMARY
We are providing these materials in connection with the 2024 Annual Meeting of Stockholders (the “Annual Meeting”) of Floor & Decor Holdings, Inc., a Delaware corporation (the “Company,” “we,” “us” or “our”). This summary highlights information contained elsewhere in this proxy statement. This summary does not contain all of the information that you should consider. Please read the entire proxy statement carefully before voting as it contains important information about matters upon which you are being asked to vote.
TIME
11:00 A.M. Eastern Time on Wednesday, May 8, 2024
PLACE
http://web.lumiagm.com/271307858
RECORD DATE
You are entitled to vote only if you were a stockholder of record at the close of business on March 13, 2024.
Agenda and Voting Recommendations
Proposal
Board Recommendation
See Page
(1) To elect eleven directors for a one-year term expiring at the 2025 Annual Meeting of stockholders once their respective successors have been duly elected and qualified or until their earlier resignation or removal. FOR each Nominee
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(2) To ratify the appointment of Ernst & Young LLP as independent auditors for our 2024 fiscal year. FOR
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(3) To approve, by non-binding vote, the compensation paid to our named executive officers for the fiscal year ended December 28, 2023, as disclosed in these proxy materials (commonly known as a “say-on-pay” proposal). FOR
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(4) To recommend, by non-binding vote, the frequency of future advisory votes on executive compensation (commonly known as a “say-on-frequency” proposal). 1 year
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(5) To transact such other business as may properly be brought before the Annual Meeting or any adjournment or postponement thereof.
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Board of Director Nominees
The following table provides summary information about each director nominee. Each director nominee is standing for election for a one-year term or until his or her successor is duly elected and qualified. All of the director nominees are current directors.
 
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Name
Age
Director Since
Principal Occupation
Committees
Norman Axelrod
71
November 2010 Former CEO, Linens ‘n Things Compensation Committee
William Giles
64
April 2021 Former CFO, AutoZone Audit Committee
Dwight James
50
September 2021 Senior Vice President, Delta Air Lines, Inc. Nominating and Corporate Governance Committee
Melissa Kersey
49
May 2023 EVP & CHRO, Tractor Supply Company Compensation Committee
Ryan Marshall
49
January 2021 CEO, PulteGroup, Inc. Audit Committee
Peter Starrett
76
November 2010 Former President, Warner Bros. Studio Stores Worldwide Compensation Committee
Richard Sullivan
67
April 2017 CEO, PGA TOUR Superstore Audit Committee
Thomas Taylor
58
December 2012 CEO of Floor & Decor Holdings, Inc. None
Felicia Thornton
60
April 2017 Former Interim CEO, 99 Cents Only Stores LLC Nominating and Corporate Governance Committee
George Vincent West
69
2000
Founder, Floor & Decor
None
Charles Young
55
January 2021 President and Chief Operating Officer of Invitation Homes Inc. Nominating and Corporate Governance Committee
 
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[MISSING IMAGE: lg_floordecor-4c.jpg]
2500 Windy Ridge Parkway, SE
Atlanta, GA 30339
PROXY STATEMENT
The Board of Directors (the “Board”) of Floor & Decor Holdings, Inc., a Delaware corporation (the “Company,” “we,” “us” or “our”), has prepared this document to solicit your proxy to vote upon certain matters at the Company’s 2024 Annual Meeting of Stockholders (the “Annual Meeting”).
These proxy materials contain information regarding the Annual Meeting, to be held on May 8, 2024, beginning at 11:00 A.M. Eastern Time, to be held by remote communication in a virtual format at: http://web.lumiagm.com/271307858, and at any adjournment or postponement thereof. As permitted by the rules adopted by the Securities and Exchange Commission (the “SEC”), rather than mailing a full paper set of these proxy materials, we are mailing to many of our stockholders only a notice of internet availability of proxy materials (the “Notice”) containing instructions on how to access and review these proxy materials and authorize their respective proxy votes online. If you receive the Notice and would like to receive a paper copy of these proxy materials, you should follow the instructions for requesting such materials located at www.voteproxy.com.
QUESTIONS ABOUT THE ANNUAL MEETING AND THESE PROXY MATERIALS
The approximate date that this proxy statement, the proxy card, and our 2023 Annual Report on Form 10-K (the “Annual Report”) are first being sent or given to our stockholders is March 19, 2024. The information regarding stock ownership and other matters in this proxy statement is as of March 13, 2024 (the “Record Date”), unless otherwise indicated.
QUESTIONS ABOUT THE ANNUAL MEETING AND THESE PROXY MATERIALS
What may I vote on?
You may vote on the following proposals:

the election of eleven directors for a one-year term expiring at the 2025 annual meeting of stockholders once their respective successors have been duly elected and qualified, or their earlier resignation or removal (“Proposal 1”);

the ratification of the appointment of Ernst & Young LLP (“EY”) as independent auditors for our 2024 fiscal year (“Proposal 2”);

the approval, by non-binding vote, of the compensation paid to our named executive officers (“NEOs”) for the fiscal year ended December 28, 2023 as disclosed in these proxy materials (commonly known as a “say-on-pay” proposal) (“Proposal 3”); and

the recommendation, by non-binding vote, of the frequency of future advisory votes on executive compensation (commonly known as a “say-on-frequency” proposal) (“Proposal 4”).
THE BOARD RECOMMENDS A VOTE FOR THE ELECTION OF THE ELEVEN DIRECTORS, FOR THE RATIFICATION OF THE APPOINTMENT OF EY AS THE INDEPENDENT AUDITORS, FOR THE APPROVAL, ON AN ADVISORY BASIS, OF COMPENSATION PAID TO OUR NAMED EXECUTIVE OFFICERS FOR THE FISCAL YEAR ENDED DECEMBER 28, 2023 (“SAY-ON-PAY”), AND RECOMMEND HOLDING THE SAY-ON-PAY VOTE ONCE EVERY YEAR (“SAY-ON-FREQUENCY”).
 
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Who may vote?
Stockholders of record of our common stock, par value $0.001 per share (“common stock”), at the close of business on the Record Date are entitled to receive the Notice and these proxy materials and to vote their respective shares at the Annual Meeting. Each share of common stock is entitled to one vote on each matter that is properly brought before the Annual Meeting. As of the Record Date, 107,010,712 shares of common stock were outstanding.
How do I vote?
We have elected to provide access to proxy materials over the Internet under the SEC’s “notice and access” rules to reduce the environmental impact and cost of the Annual Meeting. However, if you prefer to receive paper copies of our proxy materials, please follow the instructions included in the Notice.
Stockholders of Record
If your common stock is registered directly in your name with our transfer agent, Equiniti Trust Company, LLC, you are considered a stockholder of record with respect to those shares. As a stockholder of record, you have the right to vote by proxy.
You may authorize your proxy in any of the following two ways:
Internet.   Go to www.voteproxy.com to use the Internet to transmit your voting instructions and for electronic delivery of information. Have your proxy card in hand when you access the website.
Mail.   Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided, or return it to Equiniti Trust Company, LLC, Attn: Proxy Tabulation Department, 55 Challenger Rd, Ridgefield Park, NJ 07660.
Authorizing your proxy by any of these methods will not affect your right to attend the Annual Meeting and vote in person. However, for those who will not be voting in person at the Annual Meeting, your final voting instructions must be received by no later than 11:59 P.M. Eastern Time, on May 7, 2024.
Beneficial Owners
Most of our stockholders hold their shares through a stockbroker, bank or other nominee, rather than directly in their own names. If you hold your shares in one of these ways, you are considered the beneficial owner of shares held in “street name”, and the Notice is being forwarded to you by your broker, bank or nominee who is considered, with respect to those shares, the stockholder of record. As the beneficial owner, you have the right to direct your broker, bank or nominee on how to vote. Your broker, bank or nominee has enclosed a voting instruction form for you to use in directing the broker, bank or nominee on how to vote your shares. Unless you provide specific voting instructions, your brokerage firm will only have the discretion to vote shares it holds on your behalf with respect to Proposal 2 (the ratification of EY as independent auditors for our 2024 fiscal year), but not with respect to Proposal 1 (the election of eleven directors), Proposal 3 (the say-on-pay proposal), and Proposal 4 (the say-on-frequency proposal) as more fully described under “What is a broker ‘non-vote’?” below.
Can I change my vote?
Yes. If you are the stockholder of record, you may revoke your proxy before it is exercised by doing any of the following:

sending a letter to us stating that your proxy is revoked;

signing a new proxy and sending it to us; or

attending the Annual Meeting and voting by ballot.
Beneficial owners should contact their broker, bank or nominee for instructions on changing their votes.
 
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How many votes must be present to hold the Annual Meeting?
A “quorum” is necessary to hold the Annual Meeting. A quorum is a majority in voting power of the issued and outstanding shares of common stock entitled to vote at the Annual Meeting. They may be present at the Annual Meeting or represented by proxy. Abstentions and broker “non-votes” are not counted as votes cast either “FOR” or “AGAINST” a given proposal, but are counted as present and entitled to vote for purposes of determining a quorum.
How many votes are needed to approve the proposals?
The following table sets forth the voting requirements with respect to each of the proposals at the Annual Meeting:
Proposal
Vote Required
1 The election of eleven directors A “FOR” vote by a majority of votes cast
2 The ratification of EY as independent auditors for our 2024 fiscal year A “FOR” vote by a majority of votes cast
3 The Say-On-Pay Proposal A “FOR” vote by a majority of votes cast
4 The Say-On-Frequency Proposal A “FOR” vote by a majority of votes cast
A “FOR” vote by a “majority of votes cast” means that the number of shares voted “FOR” exceeds the number of shares voted “AGAINST.”
How can I submit questions relating to the Annual Meeting?
Stockholders may submit questions relating to Annual Meeting matters by sending an email our Investor Relations department at InvestorRelations@flooranddecor.com with “2024 Annual Meeting” in the subject line. Only questions pertinent to meeting matters will be answered during the meeting, subject to time constraints. Questions regarding other matters, including those related to employment, product or service issues, or suggestions for product innovations, are not pertinent to meeting matters and therefore will not be answered. Questions that are substantially similar may be grouped and answered together to avoid repetition.
How can I access the list of stockholders of record entitled to vote at the Annual Meeting?
Access to the list of stockholders of record entitled to vote at the Annual Meeting for any purpose germane to the meeting will be available for ten days ending on May 7, 2024, the day before the meeting, by emailing InvestorRelations@flooranddecor.com with “Annual Meeting Stockholder List” in the subject line. Stockholders submitting any such request must include their control number.
Where can I find the voting results of the Annual Meeting?
The Company will announce preliminary voting results at the Annual Meeting and publish final results in a Current Report on Form 8-K filed with the SEC within four business days of the completion of the meeting.
What is an abstention?
An abstention is a properly signed proxy card that is marked “abstain.” Abstentions do not constitute votes “FOR” or votes “AGAINST.”
What is a broker “non-vote?”
If you are a beneficial owner of shares held in “street name” and do not provide the broker, bank or other nominee that holds your shares with specific voting instructions, under the rules of various national and regional securities exchanges, the organization that holds your shares may generally vote on routine matters but cannot vote on non-routine matters. If the broker, bank or other nominee that holds your shares does not receive instructions from you on how to vote your shares on a non-routine matter, such organization
 
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will inform the inspector of election that it does not have the authority to vote on this matter with respect to your shares. This is commonly referred to as a broker “non-vote.”
The election of directors (Proposal 1), the say-on-pay proposal (Proposal 3) and the say-on-frequency proposal (Proposal 4) are matters considered non-routine under applicable rules. A broker, bank or other nominee cannot vote without your instructions on non-routine matters. For your vote to be counted in the above proposals, you will need to communicate your voting decisions to your broker, bank or other nominee before the date of the meeting using the voting instruction form provided by your broker, bank or other nominee.
Broker non-votes will have no effect on the election of directors (Proposal 1), the say-on-pay proposal (Proposal 3) or the say-on-frequency proposal (Proposal 4).
The ratification of the appointment of EY as our independent auditors for the fiscal year ending December 26, 2024 (Proposal 2) is a matter considered routine under applicable rules. A broker, bank or other nominee may generally vote on routine matters.
Will any other matters be acted on at the Annual Meeting?
If any other matters are properly presented at the Annual Meeting or any adjournment or postponement thereof, the persons named in the proxy will have discretion to vote on those matters. As of November 21, 2023, the date by which any proposal for consideration at the Annual Meeting submitted by a stockholder must have been received by us to be presented at the Annual Meeting, and as of the date of these proxy materials, we did not know of any other matters to be presented at the Annual Meeting.
Who pays for this proxy solicitation?
We will pay the expenses of soliciting proxies. In addition to solicitation by mail, proxies may be solicited in person or by telephone or other means by our directors or associates. We will reimburse brokerage firms and other nominees, custodians and fiduciaries for costs incurred by them in mailing these proxy materials to the beneficial owners of common stock held of record by such persons.
Whom should I contact with other questions?
If you have additional questions about these proxy materials or the Annual Meeting, please contact: Floor & Decor Holdings, Inc., 2500 Windy Ridge Parkway, SE, Atlanta, GA 30339, Attention: David V. Christopherson, Telephone: (404) 471-1634.
 
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ELECTION OF ELEVEN DIRECTORS (PROPOSAL 1)
Board Structure and the Nominees
The Board is currently comprised of eleven directors, Norman Axelrod, William Giles, Dwight James, Melissa Kersey, Ryan Marshall, Peter Starrett, Richard Sullivan, Thomas Taylor, Felicia Thornton, George Vincent West and Charles Young (the “Directors”).
Our Board was previously classified. Pursuant to an amendment to our Charter approved at our 2021 annual meeting of stockholders, beginning with this Annual Meeting, all of our directors will be subject to annual election and shall continue to hold office until their respective successors have been duly elected and qualified or until their earlier resignation or removal.
Upon the expiration of the term of a director, the nominating and corporate governance committee of the Board (the “Nominating Committee”) will recommend to the Board for its approval a director nominee to be nominated for election for a one-year term at the annual meeting of stockholders in the year in which the term of such of director expires. Until the Board is completely declassified, any director appointed to the Board to fill a vacancy will hold office for the remaining term of his or her predecessor; thereafter, any director so appointed will hold office until the next annual meeting of stockholders.
Our directors have a balance of tenure and age, which provides our Board with an effective mix of experience and perspective, as shown in the chart and biographies below:
[MISSING IMAGE: pc_election-4clr.jpg]
The terms of all Directors will expire at the Annual Meeting. In connection with the Annual Meeting, the Board, upon the recommendation of the Nominating Committee, has nominated each Director (in such capacity, a “Nominee”) for reelection as a director, each for a one-year term expiring at our 2025 annual meeting of stockholders once their respective successors have been duly elected and qualified or until their earlier resignation or removal.
Director Resignation Policy
In accordance with our Corporate Governance Guidelines, in an uncontested election of directors, any Nominee who receives a greater number of votes “withheld” from his or her election than votes “for” his or her election will, within five days following the certification of the stockholder vote, tender his or her written resignation to the chairman of the Board for consideration by the Nominating Committee. As used herein, an “uncontested election of directors” is an election in which the number of Nominees is not greater than the number of Board seats open for election. The Nominating Committee will then review the director’s continuation on the Board and recommend to the Board whether the Board should accept such
 
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tendered resignation. The Board, giving due consideration to the best interests of the Company and our stockholders, will then evaluate the relevant facts and circumstances in connection with such director’s resignation, and make a decision, within 90 days following the certification of the stockholder vote, on whether to accept the tendered resignation. The Board will then promptly disclose publicly its decision and, if applicable, the reasons for rejecting the tendered resignation.
Set forth below is information concerning our directors, and the key experience, qualifications and skills they bring to the Board as well as an overview of our Board’s diversity in demographic makeup. Our Board collectively leverages the diverse backgrounds of our directors and their strengths and experiences in many areas including those described below.
Board Skills & Experience and Demographic Matrix
The table below summarizes the specific qualifications, attributes, skills and experience of each director or director nominee that led our board of directors to conclude that the nominee is qualified to serve on our board of directors. While each director or nominee is generally knowledgeable in each of these areas, an “X” in the chart below indicates that the item is a specific qualification, attribute, skill or experience that the individual brings to our board. The lack of an “X” for a particular item does not mean that the individual does not possess the qualification, attribute, skill or experience.
Skills & Experience
Norman
Axelrod
William
Giles
Dwight
James
Melissa
Kersey
Ryan
Marshall
Richard
Sullivan
Peter M.
Starrett
Thomas
Taylor
Felicia
Thornton
George
Vincent
West
Charles
Young
Audit & Financial Expertise X X X X X X X
Corporate Strategy & Business Development X X X X X X X X X X X
Corporate Governance X X X X X X
Ethics/Social Responsibility
Oversight
X X X X
Consumer Goods X X X X X X X X X
Retail Chains X X X X X X X X X
CEO X X X X X X X X
Mergers & Acquisitions X X X X X
Risk Oversight X X X
Company Founder X
Real Estate X X X X X X X X
Home Improvement X X X X
High Growth X X X X X X X X
Digital/Omni-Channel X X X X X
Human Capital/Compensation Oversight X X X X X X X X X X
International X X X X X X
Commercial or B-to-B X X X X X X
Years on Board 13 3 3 1 3 7 13 11 7 24 3
Demographic Background
Gender
Male X X X X X X X X X
Female X X
Age
71 64 50 49 49 67 76 58 60 69 55
Race/Ethnicity
African American/Black X X
Asian, Hawaiian, or Pacific Islander
White/Caucasian X X X X X X X X
 
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Skills & Experience
Norman
Axelrod
William
Giles
Dwight
James
Melissa
Kersey
Ryan
Marshall
Richard
Sullivan
Peter M.
Starrett
Thomas
Taylor
Felicia
Thornton
George
Vincent
West
Charles
Young
Hispanic/Latino X
Number of Public Boards
2 2 2 1 2 1 2 2 2 1 1
The Nominees
Norman H. Axelrod, 71, has served as our Chairman since December 2011 and as a member of our Board since November 2010. Beginning in 1988, Mr. Axelrod served as Chief Executive Officer and a member of the board of directors of Linens ‘n Things, Inc., a retailer of home textiles, housewares and decorative home accessories, was appointed as Chairman of its board of directors in 1997, and served in such capacities until its acquisition in February 2006. Mr. Axelrod also serves on the boards of directors of the parent entities of Guitar Center, Inc., a musical instruments retailer, The Neiman Marcus Group LLC, a luxury retailer, and 99 Cents Only Stores LLC, a deep-discount retailer. Mr. Axelrod served on the board of directors of the parent entity of Smart & Final Stores, Inc., a warehouse-style food and supply retailer, until 2019. Mr. Axelrod was also appointed Chairman of the board of directors of 99 Cents Only Stores LLC in February 2018 and has previously served as the Chairman of the boards of directors of GNC Holdings, Inc., a specialty retailer of health and wellness products, National Bedding Company LLC, a mattress and bedding product manufacturer, and Simmons Company, a mattress and bedding product manufacturer, and as a member of the boards of directors of Jaclyn, Inc., a handbags and apparel company, Reebok International Ltd., a leading worldwide designer and marketer of sports, fitness and casual footwear, apparel and equipment, and Maidenform Brands, Inc., an intimate apparel retailer. Mr. Axelrod has provided consulting services to certain entities related to Ares Management Corporation. Mr. Axelrod received a B.S. in Management and Marketing from Lehigh University and an M.B.A. from New York University. Mr. Axelrod’s vast experience, including as a CEO and a member of the board of other retailers, led to the conclusion that he should serve as a member of our Board.
William T. Giles, 64, has served as a member of our Board since April 2021. Mr. Giles served as Chief Financial Officer and Executive Vice President — Finance, Information Technology and Store Development, Customer Satisfaction for AutoZone, Inc. (“AutoZone”) from 2007 to 2020. Mr. Giles joined AutoZone in 2006 as Chief Financial Officer and Executive Vice President Finance. From 1991 to May 2006, Mr. Giles held several positions with Linens ‘n Things, Inc., a retailer of home textiles, housewares and decorative home accessories, most recently as the Executive Vice President and Chief Financial Officer. Prior to 1991, Mr. Giles was with Melville, Inc. and PricewaterhouseCoopers. Mr. Giles currently serves on the board of directors for Brinker International, Constellation Brands and Autism Speaks. Mr. Giles is also a member of the Alfred University Board of Trustees. Mr. Giles received a Bachelor of Science in Accounting and Management from Alfred University. Mr. Giles’ demonstrated financial proficiency and business leadership in the retail products industry, his skills as chief financial officer of a public company and his ability to provide the Board unique insights into the strategic, governance and financial issues facing public companies in the retail industry led to the conclusion that he should serve as a member of our Board.
Dwight James, 50, has served as a member of our Board since September 2021. Mr. James is a Senior Vice President at Delta Air Lines, responsible for the company’s Customer Engagement & Loyalty and serves as the CEO of Delta Vacations, a wholly owned global subsidiary of Delta. Since 2009, he has held several senior executive roles at Delta, which included leading pricing and revenue management, where he led the development and execution of the company’s global revenue generating strategies. Mr. James also led Delta’s international franchise where he was responsible for the company’s international revenue and profit performance. He also served as the company’s Chief Economist and lead Revenue Forecaster after beginning his career at Delta as an executive in the Corporate Strategy group. From August 2002 to September 2007, Mr. James held executive roles with The Home Depot in Strategy & Business Development and within the At Home Services division. From 1997 to 2002, Mr. James was a management consultant with Deloitte Consulting in the Mergers & Acquisitions and Corporate Restructuring practices. Mr. James serves on the Advisory Board Council of Cool Girls, Inc., and in addition to his community work, he is on the Executive Committee of the Diversity, Equity & Inclusion Council at Delta. Mr. James also serves on the Board of Directors of Wheels Up. Mr. James earned his B.A. in Business Administration from Morehouse College and MBA from Duke University — The Fuqua School of Business. Mr. James’ leadership experience, which
 
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has included overseeing digital strategies, customer loyalty and engagement, and strategic growth, led to the conclusion that he should serve as a member of our Board.
Melissa Kersey, 49, has served as a member of our Board since May 2023. Ms. Kersey is the Executive Vice President and Chief Human Resources Officer at Tractor Supply Company, the largest rural lifestyle retailer in the United States. In this role, she oversees all Human Resources strategies for the Company, including compensation and benefits, recruiting, talent management, leadership development, and training, along with the Company’s diversity and inclusion initiatives. Before joining Tractor Supply in June 2020, she served as Senior Vice President and Chief People Officer for McDonald’s USA from October 2017 to July 2020. She provided executive-level leadership to expand and build people capabilities, create and drive a high-performing culture and strengthen the business alignment of the human resources function. Before joining McDonald’s in 2017, Kersey held several executive-level roles with Walmart from 2008 to 2017, including Senior Vice President of Global HR Transformation and People Services, Senior Vice President and Chief HR Officer of US Stores, and Senior Vice President of Learning and HR Strategy. Before Walmart, Kersey spent eight years with Alltel and four years with Target Corporation in Operations, Distribution, Human Resources, and Technology roles. She holds a Bachelor of Science in Business with a communications minor from Emporia State University. Her experience in human capital management, including talent development and diversity and inclusion initiatives, as well as her experience in high-growth retail, led to the conclusion that she should serve as a member of our Board.
Ryan Marshall, 49, has served as a member of our Board since January 2021. Mr. Marshall has served as the President and Chief Executive Officer of PulteGroup, Inc. (“Pulte”) since September 2016. Prior to becoming the Chief Executive Officer and President of Pulte, Mr. Marshall served as the President of Pulte since February 2016 and had the responsibility for Pulte’s homebuilding operations and its marketing and strategy departments. Prior to being named President, Mr. Marshall served as Pulte’s Executive Vice President of Homebuilding Operations. Other previous roles with Pulte included Area President for Pulte’s Southeast Area, Area President for Florida, Division President in both South Florida and Orlando and Area Vice President of Finance. In those roles, he managed various financial and operating functions including financial reporting, land acquisition and strategic market risk and opportunity analysis. Mr. Marshall’s strategic growth experience, his financial expertise, his experience with home construction and ability to contribute to our commercial business and his experience as a public company CEO led to the conclusion that he should serve as a member of our Board.
Peter M. Starrett, 76, has served as a member of our Board since November 2010. In 1998, Mr. Starrett founded Peter Starrett Associates, a retail advisory firm, and currently serves as its President. In connection with his activities at Peter Starrett Associates, Mr. Starrett also provides consulting services to certain Freeman Spogli affiliated entities. From 1990 to 1998, Mr. Starrett served as the President of Warner Bros. Studio Stores Worldwide, a specialty retailer. Previously, he was Chairman and Chief Executive Officer of The Children’s Place, a specialty retailer. Prior to that, Mr. Starrett held senior executive positions at both Federated Department Stores and May Department Stores, each a department store retailer. Mr. Starrett is Chairman of the board of directors of Boot Barn, Inc., a specialty apparel and footwear retailer. From May to November of 2012, Mr. Starrett served as Boot Barn, Inc.’s interim Chief Executive Officer. In addition, he is a member of the board of directors of several private companies. Previously, he was also the Chairman of the board of directors of Pacific Sunwear, Inc. and served on the board of directors of hhgregg, Inc., an electronics and appliances retailer. Mr. Starrett received a B.S.B.A. from the University of Denver and an M.B.A. from Harvard Business School. Mr. Starrett’s extensive experience as an officer and a director of both public and private companies in the retail industry led to the conclusion that he should serve as a member of our Board.
Richard L. Sullivan, 67, has served as a member of our Board since April 2017. Mr. Sullivan was the President and CEO of the parent entity of PGA TOUR Superstore, a nationwide specialty golf retailer, from 2009 to 2022, and has been a director of such entity since 2014. Previously, Mr. Sullivan was the Chief Marketing Officer for Home Depot Inc. (“Home Depot”) from 1992 to 2002. From 2002 to 2008, Mr. Sullivan served as the Executive Vice President and Chief Marketing Officer overseeing sales, marketing and other business-related functions for the Atlanta Falcons and team owner Arthur Blank. Mr. Sullivan was elected Vice Chairman of the board of directors of the National Golf Foundation in January 2016 and serves as a member of its compensation committee. He received his B.S. in Accounting from Roger Williams
 
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University. Mr. Sullivan’s business experience, including in home improvement and specialty retailers, led to the conclusion that he should serve as a member of our Board.
Thomas V. Taylor, Jr., 58, has served as our Chief Executive Officer and a member of our Board since December 2012. Prior to joining us, Mr. Taylor began his career at age 16 in 1983 at a Miami Home Depot store. He worked his way up through various manager, district manager, vice president, president, and senior vice president roles to eventually serve as the Executive Vice President of Operations with responsibility for all 2,200 Home Depot stores and then the Executive Vice President of Merchandising and Marketing, again for all stores. After leaving Home Depot in 2006, for the next six years, Mr. Taylor was a Managing Director at Sun Capital Partners. During his tenure, he was a board member for over twenty portfolio companies in the United States and Europe. Mr. Taylor currently serves on the board of directors of National Vision Holdings Inc., an optical retailer, and Cooper’s Hawk, a differentiated wine club and restaurant concept. Mr. Taylor’s significant experience as a board member and his expertise in the home improvement retail industry led to the conclusion that he should serve as a member of our Board.
Felicia D. Thornton, 60, has served as a member of our Board since April 2017. Ms. Thornton served as Interim Chief Executive Officer from June 2019 to March 2020 and Chief Financial Officer and Treasurer for 99 Cents Only Stores LLC, a deep-discount retailer, from November 2015 to August 2018. In February 2018, Ms. Thornton was appointed to the board of directors for 99 Cents Only Stores LLC (“99 Cents Only”) where she has served as Chair of the board of directors since March 2023 and Chair of the audit committee since February 2021, and previously served as Vice Chair of the board of directors from February 2018 through February 2023 and Chair of the 99 Cents Only audit committee from November 2018 to April 2019. In September 2020, Ms. Thornton was appointed to the board of directors and audit committee of Pactiv Evergreen Inc., a food and beverage packaging company. Ms. Thornton is a member of the board of directors and Chair of the audit committee of Covergint Technologies and Coolsys, both private companies. Ms. Thornton served on the board of directors and audit committee of Ares Acquisition Corp., a special purpose acquisition company, from February 2021 to December 2023. In April 2023, Ms. Thornton was appointed to the board of directors and Chair of the audit committee effective of Ares Acquisition Corporation II, a special purpose acquisition company. Previously, Ms. Thornton served as Co-Chief Executive Officer, President and Chief Operating Officer for DeMoulas Super Market, Inc., (“DeMoulas”), a supermarket chain, from June 2014 to December 2014 and as the Chief Executive Officer of Knowledge Universe U.S., a private childhood education company, from 2006 to 2011. Ms. Thornton served as Chief Financial Officer and led overall strategy for Albertsons, a grocery and drugstore company, from 2001 to 2006. Ms. Thornton served in a variety of executive strategic and financial roles from 1992 to 2000 for Ralphs Grocery Company, Inc., a grocery store chain, and for Fred Meyer, a retail supermarket company, both of which eventually became part of The Kroger Company, a global retailer of grocery, multi-department, discount, convenience and jewelry stores, where Ms. Thornton served as Group Vice President responsible for retail operations. Ms. Thornton has served as a member of the boards of directors of public and private companies, including Nordstrom, Inc., a luxury retailer, from November 2010 to May 2012 and for Knowledge Universe Education, Inc. from November 2006 to May 2012. Ms. Thornton also served as an Advisor to the Special Committee of the board of directors of DeMoulas from April 2014 to June 2014. Ms. Thornton is a member of the Latino Corporate Directors Association and is a National Association of Corporate Directors Fellow. Ms. Thornton received a B.S. in Economics from Santa Clara University and an M.B.A. from the University of Southern California. Ms. Thornton’s extensive executive experience in retail, and particularly in large high-growth multi-unit retailers, led to the conclusion that she should serve as a member of our Board.
George Vincent West, 69, has served on our Board since he founded us in 2000. He served as our Chief Executive Officer from 2000 to 2002, as Co-Chief Executive Officer from 2008 to 2010 and as Chief Executive Officer from 2010 through 2012. Currently, Mr. West serves as the Vice Chairman of our Board, a position that he has held since December 2012. Mr. West began his business career starting a successful retail glassware business in Atlanta. He was eventually recruited to work for his family building materials business, West Building Materials, which operated in five southeastern states, and eventually became its President. Mr. West also developed and sold a multistate billboard company and has developed several real estate projects across the state of Georgia, the most recent being Utana Bluffs, a boutique mountain home community in the north Georgia Mountains. Mr. West’s most recent venture is Mountain & Marsh Hospitality Group, which offers accommodations in the North Georgia Mountains and the Georgia Coast. Mr. West currently
 
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serves as Chair of the Lamar Dodd School of Art Board of Visitors, Mr. West also serves on the Board of Directors of The Savannah Music Festival and is the Vice Chair of the Board of Trustees of the Telfair Art Museum. Mr. West is a member of the Executive Advisory Council for the Emory Brain Health Center. Mr. West is also a member of the University of Georgia Terry School of Business Entrepreneurship Advisory Board. Mr. West graduated from the Terry College of Business at the University of Georgia in 1977. Mr. West’s experience and intimate knowledge of the Company led to the conclusion that he should serve as a member of our Board.
Charles Young, 55, has served as a member of our Board since January 2021. Mr. Young was promoted to President and Chief Operating Officer of Invitation Homes in 2023, after having served as Executive Vice President and Chief Operating Officer from 2017 to 2023. From 2015 until Invitation Homes completed its merger with Starwood Waypoint Homes (“SWH”), Mr. Young served in a number of senior roles with SWH and its predecessor. Earlier in his career, Mr. Young worked for Goldman, Sachs & Co. in its Real Estate Principal Investment Area (Whitehall) and Goldman’s Investment Banking Division, in mergers and acquisitions. He also has prior experience in real estate development and diversity consulting. Before starting his career in real estate and investment banking, Mr. Young spent several years as a professional football player in the National Football League and the World League of American Football. He is a member of the Stanford Board of Trustees and currently serves as a member of the board of directors of Federal Home Loan Bank of Chicago. He was also a founding member of the LEARN Charter School Network. He received his B.A. in Economics from Stanford University and an M.B.A. from Stanford’s Graduate School of Business. Mr. Young’s operating experience, including in a high-growth public company, his experience in mergers and acquisitions and his real estate expertise led to the conclusion that he should serve as a member of our Board.
THE BOARD UNANIMOUSLY RECOMMENDS THAT THE STOCKHOLDERS VOTE FOR THE ELECTION OF THE ELEVEN NOMINEES AS DIRECTORS.
OTHER BOARD INFORMATION
Board Meetings in 2023
The Board held four meetings during our fiscal year ended December 28, 2023 (“Fiscal 2023”).
Director Attendance
During Fiscal 2023, each of our directors attended at least 75% of the total number of meetings of the Board and committees on which he or she served that were held during the period he or she served as a director or committee member, as applicable.
We encourage, but do not require, our directors to attend our annual meetings of stockholders. Ten of our directors who served on the Board in Fiscal 2023 attended our 2023 annual meeting of stockholders.
Director Independence
Our Board has reviewed the independence of our directors and has considered whether any director has a material relationship with us that could compromise that director’s ability to exercise independent judgment in carrying out that director’s responsibilities. Our Board has affirmatively determined that each of Messrs. Axelrod, Giles, James, Marshall, Starrett, Sullivan and Young and Mses. Kersey and Thornton qualifies as an “independent director,” as defined in the corporate governance rules of the New York Stock Exchange (the “NYSE”).
Our common stock has been listed for trading on the NYSE under the symbol “FND” since April 27, 2017.
Board Leadership Structure
Our Board has no policy with respect to the separation of the offices of Chief Executive Officer and Chairman of the Board. It is the Board’s view that the most effective leadership structure for the Company is for the Board, with the advice and assistance of the Nominating Committee, and upon consideration of all
 
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relevant factors and circumstances, to determine, as and when appropriate, whether the two offices should be separate, rather than having a rigid policy.
Currently, our leadership structure separates the offices of Chief Executive Officer and Chairman of the Board with Mr. Taylor serving as our Chief Executive Officer and Mr. Axelrod as Chairman of the Board. We believe this is appropriate as it provides Mr. Taylor with the ability to focus on our day-to-day operations while Mr. Axelrod focuses on oversight of our Board.
From time to time, and, consistent with our Corporate Governance Guidelines, at least once a year, the Board meets in executive session without members of management present. The Chairman of the Board presides at these executive sessions. Whenever the Chairman of the Board is not an independent director, the Chairman of the Nominating Committee shall act as the presiding independent director and shall preside at meetings of the independent directors or non-management directors.
The procedures by which a particular director is selected to preside at each executive session meeting of the independent or non-management directors of our Board are disclosed in our Corporate Governance Guidelines, which are available on the Governance Documents page of the Investors section of our website located at ir.FloorandDecor.com. Our website is not part of this proxy statement; references to our website address in this proxy statement are intended to be inactive textual references only.
Risk Oversight
Our Board plays an active role in overseeing management of our risks. Our Board regularly reviews information regarding our credit, compliance, liquidity and operations, as well as the risks associated with each. The compensation committee of our Board (the “Compensation Committee”) is responsible for overseeing the management of risks relating to our executive compensation plans and arrangements and the audit committee of the Board (the “Audit Committee”) is responsible for overseeing the management of financial, legal, cybersecurity and regulatory risks and our enterprise risk management process generally. The Nominating Committee is responsible for managing risks associated with the independence of the Board. While each committee is responsible for evaluating certain risks and overseeing the management of such risks, our full Board keeps itself regularly informed regarding such risks through committee reports and otherwise.
Board Committees
Our Board has the authority to appoint committees to perform certain management and administration functions. Our Board has the following standing committees: an Audit Committee, a Compensation Committee and a Nominating Committee. The composition and responsibilities of each standing committee are described below. Members serve on these committees until their resignation or until otherwise determined by the Board. The Board has adopted a written charter for each of our Audit Committee, Compensation Committee and Nominating Committee, which are available, along with the Code of Business Conduct and Ethics and Corporate Governance Guidelines, on the Governance Documents page of the Investors section of our website located at ir.FloorandDecor.com. We intend to disclose any amendments to the above documents, or any waivers of their requirements, on our website to the extent required by applicable SEC rules or the rules of the NYSE.
Audit Committee
The Audit Committee held four meetings during Fiscal 2023. The Audit Committee is comprised of Messrs. Marshall, Sullivan and Giles, who acts as its chair. Our Board determined that each of Messrs. Giles, Marshall, and Sullivan qualifies as an “audit committee financial expert” as defined in Item 407(d)(5)(ii) of Regulation S-K, has the attributes set forth in such section and is financially literate, as required by the rules of the NYSE. In addition, our Board has determined that each of Messrs. Giles, Marshall and Sullivan is independent as independence is defined under the rules of the NYSE and Rule 10A-3(b)(1) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
The principal duties and responsibilities of our Audit Committee are as follows:

to serve as an independent party to monitor the Company’s financial reporting processes and internal control system;
 
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to discuss and review guidelines and policies with respect to risk assessment and risk management, including the Corporation’s major financial risk exposures including cybersecurity, and the steps management has taken to monitor and control such exposures;

to discuss the audit conducted by the Company’s independent registered public accounting firm; and

to provide an open avenue of communication among the independent registered public accounting firm, management and the Board.
The Audit Committee has the power to investigate any matter brought to its attention within the scope of its duties. It also has the authority to retain counsel and advisors to fulfill its responsibilities and duties.
Compensation Committee
The Compensation Committee held three meetings during Fiscal 2023. The Compensation Committee is comprised of Ms. Kersey, Mr. Starrett and Mr. Axelrod, who acts as its chair.
The principal duties and responsibilities of our Compensation Committee are as follows:

to provide oversight on the development and implementation of the compensation policies, strategies, plans and programs for our key employees and outside directors and disclosure relating to these matters;

assist the Board with oversight of human capital management matters, including corporate culture, diversity and inclusion, recruiting, retention, attrition, talent management, career development and progression, succession, and employee relations;

administer the Company’s Clawback Policies;

to review and approve the compensation of our chief executive officer and the other executive officers of us and our subsidiaries; and

to provide oversight concerning the compensation of our chief executive officer, performance of the chief executive officer, to prepare a report on executive compensation for inclusion in this proxy statement and the Annual Report and related matters.
Role of Outside Advisors.   Pursuant to the charter of the Compensation Committee, the Compensation Committee has the authority to engage independent counsel, accountants, consultants and other advisers as it deems necessary or appropriate to carry out its duties and responsibilities. As discussed in these proxy materials under the heading “Compensation Discussion and Analysis,” in Fiscal 2023, our Compensation Committee engaged Korn Ferry to provide analysis related to the competitiveness of our executive and director compensation programs, periodic reviews of our compensation peer group, the presentation of compensation and governance trends to the Compensation Committee, advice with respect to reporting requirements pursuant to the Pay versus Performance rules released by the Securities and Exchange Commission, as mandated by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), and other mandates as directed by the Compensation Committee.
The Compensation Committee annually reviews the independence of Korn Ferry as its consultant under applicable SEC and NYSE rules on conflict of interest. Following this review, the Compensation Committee determined that Korn Ferry’s work for us does not raise any conflicts of interest. The Compensation Committee’s evaluation included consideration of all services provided to us, the amount of fees received as a percentage of Korn Ferry’s annual revenue, its policies and procedures designed to prevent conflicts of interest, any business or personal relationships between Korn Ferry and the members of our Compensation Committee or executive officers and any ownership of our stock by the advisors providing executive and director compensation services to us.
Compensation Risk Assessment.
In Fiscal 2023, Korn Ferry supported management and the Compensation Committee in conducting their risk assessment of our incentive compensation plans and practices. As a result of this analysis as well
 
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as their regular review of compensation policies and practices, management has concluded that our compensation programs do not create risks that are reasonably likely to have a material adverse effect on the Company. The Compensation Committee has reviewed and agrees with management’s conclusion.
Nominating Committee
The Nominating Committee held two meetings during Fiscal 2023. The Nominating Committee is comprised of Messrs. Young and James and Ms. Thornton, who acts as its chair.
The principal duties and responsibilities of the Nominating Committee are as follows:

to establish criteria for board and committee membership and recommend to our Board proposed nominees for election to the Board and for membership on committees of the Board;

oversee the evaluations of the Board, the committees of the Board and management;

advise and assist the Board with oversight of environmental, social and governance-related (“ESG”) matters, including sustainability, responsible business and climate-related issues; and

to make recommendations to our Board regarding board governance matters and practices.
Director Qualifications; Nominating Committee Process; Board Diversity.   The Nominating Committee’s policy is to identify potential nominees from any properly submitted nominations, including any properly submitted nominations from our stockholders, and subsequently evaluate each potential nominee. To properly submit a nomination, our stockholders must provide timely notice of such nomination in accordance with Section 1.10 of our Third Amended and Restated Bylaws (the “Bylaws”).
The Nominating Committee conducts the appropriate and necessary inquiries (as determined by the Nominating Committee) with respect to the backgrounds and qualifications of any potential nominees, without regard to whether a potential nominee has been recommended by our stockholders, and, upon consideration of all relevant factors and circumstances, recommends to the Board for its approval the slate of director nominees to be nominated for election at our annual meeting of stockholders. Given the complex nature of the Company’s business, the Board believes it is important to consider diversity of race, ethnicity, gender, age, education, cultural background, and professional experiences in evaluating candidates. Accordingly, when evaluating candidates for nomination as new directors, the Nominating Committee will consider (and will require any search firm that it engages to provide) a set of candidates that includes diverse candidates. We intend to succeed in accomplishing that goal through, among other things, soliciting suggestions from our Board and senior management, hiring third-party search firms as needed, and considering candidates proposed by shareholders in the same manner we evaluate candidates proposed by our Board or senior management. We have previously engaged the third-party search firm Russell Reynolds Associates to help us identify qualified candidates for our Board.
We believe the enhanced quality that results from a diverse board is beyond any reasonable dispute. We will continue the progress made to date by continuing to implement our policy of recruiting diverse nominee candidates.
The Nominating Committee is committed to a policy of inclusiveness and seeks members with diverse backgrounds, an understanding of our business and a reputation for integrity. Our director refreshment over the last several years has resulted in a diverse group of independent directors with low average tenure, gender diversity and significant experience. Highlights of our recent progress in building a diverse Board include:

During the majority of 2023, three of the Board’s members were racially or ethnically diverse, and two were female.

Of the six new directors recommended by the Nominating Committee in 2020, 2021 and 2023 to replace departing directors, 67% were diverse, as two are racially or ethnically diverse, and two are female.
The Nominating Committee is mindful of the fact that the percentage of women on our Board is below 30% and is committed to increasing such percentage through our Board refreshment process.
 
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Environmental, Social and Governance Matters
We believe that the Company is able to advance ESG-related considerations and that sound corporate citizenship includes responsiveness to ESG issues that materially impact our stakeholders and the communities in which we operate. We are committed to operating our business with integrity; focusing on material ESG issues; giving back to the communities we serve; being environmentally conscious; and operating a responsible supply chain that focuses on the quality of our products and improves the lives of workers involved in manufacturing our products. Our Board provides overall oversight of the Company’s ESG efforts, and the charter of the Nominating Committee specifically tasks that committee with development and review of our ESG efforts, and with making recommendations to the Board and/or management regarding the same. The Nominating Committee’s oversight includes assessing and planning for the potential impact of climate change and other sustainability risks and opportunities on our business. A copy of the charter of the Nominating Committee is available on our website at ir.FloorandDecor.com under “Governance Documents.” Below are just a few examples demonstrating our commitment to ESG matters:

Since 2015, we have raised over $1,300,000 from our associates and directors for The West Fund, our financial assistance program for associates in need.

Since 2017, we have donated more than 1 million square feet of flooring material to charity.

In 2021, we committed to aligning our voluntary ESG disclosures with guidance from the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD).

By investing in energy efficiency, over 75% of our stores have high-efficiency HVAC units, and over 97% of our stores and distribution centers have LED lighting.

In 2023, Floor & Decor began partnering with a leading carbon footprint platform to advance our methodology in scope 1 and scope 2 measurement.

We have continued to invest in Culture and Diversity initiatives: our CEO signed the CEO Action for Diversity & InclusionTM pledge, and over the last three years, more than 45 female store leaders participated in our Women in Leadership program.
Employees
We believe that one of the biggest drivers in our growth and success is our employees and the culture that attracts them. We have built a strong team of employees to support our continued success. Each of our stores is led by a Chief Executive Merchant (“CEM”) and is supported by an operations manager, product category department managers, a design team, a Pro sales and support team, a Connected Customer Manager, and a number of additional associates. Outside of our stores, we have employees dedicated to serving our stores in corporate, store support, infrastructure, e-commerce, and similar functions as well as support for our distribution centers and Asian sourcing office. We dedicate significant resources to training our employees and believe they are key to our success. As of December 28, 2023, we had 12,783 employees, with 12,771 of these employees located in the United States and 12 located outside of the United States. This population consisted of our full-time, part-time, and temporary employees. None of our employees are represented by a labor organization or are a party to any collective bargaining arrangement.
We are mindful of diversity throughout the employment cycle and believe that diversity is key to our culture and long-term success. We strive to foster a supportive environment that cultivates professional growth and encourages employees to continuously develop their skills. We consider our relationship with employees to be vital, and are focused on effective attraction, onboarding, and implementation of our values. We intend to make additional investments in culture and diversity initiatives in the future. A summary of Fiscal 2023 year-end U.S. demographic data follows (percentages may not sum due to rounding):
 
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Race/Ethnicity Matters
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Gender
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Annual Board Self-Evaluation
In 2023, the Board and each of its committees undertook a self-evaluation process that included a series of interviews conducted by the Chair of the Nominating Committee with each of our directors to gather input on individual director’s contributions, the effectiveness of the Board and committee compositions and structure and the relationship between management and the Board. Feedback from the 2023 and prior Board self-evaluation processes has driven changes in the format of Board meetings, the nature of executive sessions, the format and content of the director onboarding process and individuals nominated to be members of the Board.
Code of Conduct and Ethics
The Board has adopted a Code of Business Conduct and Ethics that applies to all of our employees, including those officers responsible for financial reporting. The Code of Business Conduct and Ethics is available on our website at ir.FloorandDecor.com. We intend to disclose any amendments to the code, or any waivers of its requirements, on our website to the extent required by applicable SEC rules or the rules of the NYSE. The inclusion of our website address in this proxy statement does not include or incorporate by reference the information on or accessible through our website into this proxy statement.
Compensation Committee Interlocks and Insider Participation
None of the directors who served on the Compensation Committee in Fiscal 2023 has ever served as one of our officers or employees. In addition, none of the directors who served on the Compensation
 
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Committee had any relationship with us or any of our subsidiaries during Fiscal 2023 pursuant to which disclosure would be required under applicable rules and regulations of the SEC pertaining to the disclosure of transactions with related persons. During Fiscal 2023, (A) none of our executive officers served as a member of the compensation committee (or other committee performing similar functions or, in the absence of any such committee, the entire board of directors) of any other entity of which an executive officer of such other entity served on our Compensation Committee; (B) none of our executive officers served as a director of any other entity of which an executive officer of such other entity served on our Compensation Committee; and (C) none of our executive officers served as a member of the compensation committee (or other board committee performing equivalent functions or, in the absence of any such committee, the entire board of directors) of any other entity of which an executive officer of such other entity served on the Board.
Stockholder and Interested Party Communications
The Board welcomes communications from our stockholders and other interested parties. Stockholders and other interested parties may send communications to the Board, or to any particular director, to the following address: Floor & Decor Holdings, Inc., 2500 Windy Ridge Pkwy SE, Atlanta, GA 30339, Attention: Secretary. Stockholders or interested parties should indicate clearly the director or directors to whom the communication is being sent so that each communication may be forwarded directly to the appropriate director(s).
 
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CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Registration Rights Agreement
We are a party to a registration rights agreement with certain of our stockholders (the “Registration Rights Agreement”). Pursuant to the terms of the Registration Rights Agreement, the stockholders party thereto are entitled to various rights with respect to the registration of their shares under the Securities Act. Registration of any of these shares under the Securities Act would result in such shares becoming fully tradable without restriction under the Securities Act immediately upon the effectiveness of the registration, except for shares purchased by affiliates.
Registration Rights
If we propose to register any of our own securities under the Securities Act in a public offering, we will be required to provide notice to the holders of our common stock with registration rights under the Registration Rights Agreement and provide them with the right to include their shares in the registration statement, subject to certain conditions and exceptions contained in the Registration Rights Agreement
Expenses
We will be required to bear the registration expenses, other than underwriting discounts and commissions and transfer taxes, associated with any registration of shares of our common stock held by the holders of our common stock with registration rights under the Registration Rights Agreement.
Indemnification of Officers and Directors
Our Charter and Bylaws provide that we will indemnify each of our directors and officers to the fullest extent permitted by Delaware law. In addition, we have entered into indemnification agreements with each of our directors and executive officers.
Ordinary Course Transactions with Related Persons
From time to time, our directors, officers, employees and affiliates may enter into commercial transactions with us in the ordinary course of business, primarily for the purchase of products at our stores.
Family Member Employment
Thomas Taylor’s son, Nicholas Taylor, serves as Vice President, Merchandising Stores of the Company. For Fiscal 2023, Nicholas Taylor earned total compensation of approximately $391,577. Total compensation includes salary, bonus, RSU awards and customary employee benefits. Nicholas Taylor’s compensation is consistent with that of other employees with equivalent qualifications and responsibilities and holding similar positions.
Pulte Commercial Agreements
On August 12, 2023, a subsidiary of the Company entered into certain regional program and supply agreements with PulteGroup, Inc. and its affiliates to offer wall and flooring products for purchase by Pulte to be included in certain homes built by Pulte. Ryan Marshall is the CEO of Pulte and is a member of our Board. Mr. Marshall does not participate in these transactions and does not benefit directly from them. Prior to entering into the agreements, the arrangement was determined by the other members of the Audit Committee to be an ordinary course, arms’ length transaction.
Delta Airlines Commercial Arrangement
On November 1, 2023, a subsidiary of the Company entered into Corporate Incentive Agreement with Delta Air Lines, Inc. and certain other airlines to provide certain incentives to the Company for booking business travel with such airlines. Dwight James is a Senior Vice President of Delta Airlines, Inc. and member of our Board. Mr. James does not participate in these transactions and does not benefit directly from
 
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them. Prior to entering into the agreement, the arrangement was determined by the Audit Committee to be an ordinary course, arms’ length transaction.
Statement of Policy Regarding Transactions with Related Persons
The Company has internal policies and procedures in place for the review, approval and monitoring of transactions involving the Company and certain persons related to it. For example, the Company has a Code of Business Conduct and Ethics and Corporate Governance Guidelines which generally prohibit officers or directors of the Company from engaging in any transaction where there is a conflict between such individual’s personal interest and the interests of the Company. Waivers to provisions of our internal policies, including the Code of Business Conduct and Ethics can generally only be obtained from our Audit Committee, or if for an executive officer or a director, by the Board, and are publicly disclosed as required by applicable law and regulations.
In addition, the Audit Committee is charged with reviewing for approval of all transactions with “related persons” ​(as defined in paragraph (a) of Item 404 Regulation S-K) that are brought to the Audit Committee’s attention.
 
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RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS (PROPOSAL 2)
In accordance with the Audit Committee’s charter, the Audit Committee is responsible for the appointment and retention of our independent auditors. In our fiscal years ended December 29, 2022 (“Fiscal 2022”) and December 28, 2023, all audit and non-audit services were pre-approved by the Audit Committee.
The Audit Committee has appointed EY to serve as our independent auditors for our fiscal year ending December 26, 2024, subject to ratification by our stockholders. Representatives of EY will be present at the Annual Meeting to answer questions and will also have the opportunity to make a statement if they desire to do so. If the proposal to ratify EY’s appointment is not approved, other certified public accountants will be considered by the Audit Committee. Even if the proposal is approved, the Audit Committee, in its discretion, may direct the appointment of new independent auditors at any time during the year if it believes that such a change would be in the best interest of the Company and its stockholders.
Fees Paid to EY
The fees incurred by us for professional services rendered by Ernst & Young for Fiscal 2022 and Fiscal 2023 were as follows:
Fiscal 2023
Fiscal 2022
Audit Fees
$ 2,388,290 (1) $ 2,057,083(1)
Audit-related Fees
30,038(2)
Tax Fees
338,786(3) 224,978(3)
All Other Fees
$ 2,727,076 $ 2,312,099
(1)
Audit fees include fees and expenses for professional services rendered for the audit of the Company’s annual consolidated financial statements, reviews of quarterly financial statements and related services. Additionally, audit fees in fiscal 2023 include fees and expenses for professional services rendered for the Form S-8 Registration Statement issued in May 2023.
(2)
In fiscal 2022, audit-related fees include fees and expenses for professional services rendered for due diligence procedures related to the acquisition of Spartan Surfaces, LLC.
(3)
Tax fees include fees for tax services, including tax compliance, tax advice and tax planning.
The Audit Committee has concluded that the provision of the foregoing services is compatible with maintaining EY’s independence.
Audit Committee Pre-Approval Policies and Procedures
The Audit Committee has adopted policies and procedures for the pre-approval of audit services and permitted non-audit and tax services rendered by our independent registered public accounting firm. Pre-approval may also be given as part of our Audit Committee’s approval of the scope of the engagement of the independent auditor or on an individual, case-by-case basis before the independent auditor is engaged to provide each service. The chairperson of the Audit Committee has been delegated the authority to pre-approve any engagement for such audit services and permitted non-audit and tax services, provided that the chairperson of the Audit Committee must disclose all such pre-approved services to the full Audit Committee at the meeting of the Audit Committee immediately following any such pre-approval.
All of the services provided by EY described above were approved by our Audit Committee pursuant to our Audit Committee’s pre-approval policies.
THE BOARD UNANIMOUSLY RECOMMENDS THAT THE STOCKHOLDERS VOTE FOR THE RATIFICATION OF THE APPOINTMENT OF EY AS INDEPENDENT AUDITORS FOR OUR FISCAL YEAR ENDING DECEMBER 26, 2024.
 
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AUDIT COMMITTEE REPORT
The Audit Committee is comprised of three independent directors and operates under a written charter adopted by the Board, a copy of which is available on the Corporate Governance page of the Investors section of our website located at ir.FloorandDecor.com. The Board has determined that each of Messrs. Giles, Marshall and Sullivan is independent as independence is defined under the applicable section of the NYSE rules, and that each of Messrs. Giles, Marshall and Sullivan is independent as independence is defined under Rule 10A-3(b)(1) under the Exchange Act. The Board has also determined that each of Messrs. Giles, Marshall and Sullivan qualifies as an “audit committee financial expert.”
The primary purposes of the Audit Committee are to: monitor our financial reporting process and internal control system; appoint our independent registered public accounting firm, determine its compensation and other terms of engagement and oversee its work; oversee the performance of our internal audit function; and oversee our compliance with legal, ethical and regulatory matters.
As noted above, the Audit Committee assists the Board in appointing our independent registered public accounting firm, EY, which includes, among other things, reviewing and evaluating the qualifications, performance and independence of the lead audit partner responsible for our audit, overseeing the required rotation of the lead audit partner and reviewing and considering the selection of the lead audit partner. In appointing EY and the lead audit partner, the Audit Committee considered, among other things, the quality and efficiency of the services provided, including the results of a global internal survey of EY’s performance, the technical capabilities of the engagement teams, external data concerning EY’s audit quality and performance obtained from reports of the Public Company Accounting Oversight Board (“PCAOB”), the engagement teams’ understanding of our company’s business as well as the potential impact of changing auditors. The Audit Committee and the Board believe that the continued retention of EY to serve as the Company’s independent auditor is in the best interests of the Company and its stockholders and have recommended that stockholders ratify the appointment of EY as the Company’s independent auditor for the fiscal year 2024.
The Audit Committee discussed the auditors’ review of our quarterly financial information with the auditors prior to the release of such information and the filing of our quarterly reports with the SEC. The Audit Committee also met and held discussions with management and EY with respect to our audited year-end financial statements.
Further, the Audit Committee discussed with EY the matters required to be discussed by Statement on Auditing Standards No. 1301, as amended (Communications With Audit Committees), received the written disclosures and the letter from EY required by applicable requirements of the PCAOB regarding the independent registered public accounting firm’s communications with the Audit Committee concerning independence, has discussed with the auditors the auditors’ independence and has considered, among other things, the audit and non-audit services performed by, and the amount of fees paid for such services to, the independent registered public accounting firm. In determining EY’s independence, the Audit Committee considered whether EY’s provision of non-audit services were compatible with the independence of the independent registered public accounting firm. The Audit Committee also discussed with the auditors and our financial management matters related to our internal control over financial reporting. Based on these discussions and the written disclosures received from EY, the Audit Committee recommended that the Board include the audited financial statements in the Annual Report for the fiscal year ended December 28, 2023, for filing with the SEC. The Board has approved this recommendation.
This audit committee report is not deemed filed under the Securities Act or the Exchange Act, and is not incorporated by reference into any filings that we may make with the SEC.
AUDIT COMMITTEE
William Giles (Chairperson)
Ryan Marshall
Richard Sullivan
 
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EXECUTIVE OFFICERS
Name
Age
Position
Thomas V. Taylor
58
Chief Executive Officer and a Director
Bryan H. Langley
38
Executive Vice President, Chief Financial Officer
Trevor S. Lang
53
President
David V. Christopherson
49
Executive Vice President, Chief Administrative Officer & Chief Legal Officer
Steven A. Denny
60
Executive Vice President, Store Operations
Ersan Sayman
51
Executive Vice President, Merchandising
The biography for Mr. Taylor is set forth above under “Election of Eleven Directors (Proposal 1) —The Nominees.”
Bryan H. Langley, 38, is our Executive Vice President and Chief Financial Officer. He joined the Company as Financial Reporting Manager in 2014 and was promoted to Director of Financial Reporting in 2016. From 2016 to 2022, he held various roles at the Company, including Senior Director of Financial Planning and Analysis and Vice President, Financial Planning and Analysis. In 2022, he was promoted to Executive Vice President and Chief Financial Officer. Prior to joining the Company, Mr. Langley served in various accounting and finance roles at Delta Air Lines, Inc. from 2011 to 2014. From 2008 to 2011, Mr. Langley worked in public accounting, holding positions in transaction services and auditing at KPMG LLP. Mr. Langley is a graduate of University of Georgia with both a B.B.A. in Accounting and a Master of Accountancy. Mr. Langley is also a Certified Public Accountant.
Trevor S. Lang, 53, is our President. Mr. Lang joined the Company as Senior Vice President and Chief Financial Officer in 2011, and was promoted to Executive Vice President of Professional Services and Chief Financial Officer in October 2014 in connection with his assuming responsibility for leading our in-store Pro business. In 2022, he was promoted to President and is responsible for Merchandising, Marketing, eCommerce and Technology functions. From 2007 to 2011, he served as the Chief Financial Officer of Zumiez Inc. and also served as its Chief Administrative Officer beginning in April 2010. Previously, he had served as Vice President of Finance for Carter’s, Inc. since 2003. At Carter’s, Mr. Lang was responsible for the management of the corporate accounting and finance functions. From 1999 until joining Carter’s in 2003, Mr. Lang served in a progressive series of Vice President roles in the finance area at Blockbuster Inc., culminating in his role as Vice President of Operations Finance where he was responsible for accounting and reporting for over 5,000 company-owned and franchised stores. From 1994 until 1999, Mr. Lang worked in the audit division of Arthur Andersen reaching the level of audit manager. Mr. Lang is a 1993 graduate of Texas A&M University with a B.B.A. in Accounting. He is also a Certified Public Accountant.
David V. Christopherson, 49, is our Executive Vice President, Chief Administrative Officer & Chief Legal Officer. He has responsibility for our Information Technology, Legal, Human Resources, Safety & Loss Prevention, Risk Management and Sustainability functions. He joined the Company as General Counsel and Secretary in 2013 and was promoted to Senior Vice President in 2015 and Executive Vice President in 2018. In 2024, he was promoted to his current role of Executive Vice President, Chief Administrative Officer & Chief Legal Officer. Mr. Christopherson was the Vice President, General Counsel and Secretary of Teavana Holdings, Inc. from 2011 to 2013 and the Deputy General Counsel of Swett & Crawford from 2007 to 2011. He was previously an attorney with the law firms King & Spalding and Sullivan & Cromwell. Mr. Christopherson received an A.B. in Political Science from Davidson College and a J.D. from Harvard Law School.
Steven A. Denny, 60, is our Executive Vice President, Store Operations and is responsible for all store regions, design services, regional merchandising and safety and asset protection. He joined the Company as a Chief Executive Merchant in 2013 and was promoted to Senior Vice President, Stores in 2017 and Executive Vice President, Stores in 2020. From 2000 to 2013, Mr. Denny held a variety of roles at Home Depot, including serving as the Western Division Field Merchandise Manager. Mr. Denny brings over 35 years of retail and commercial experience in store operations and merchandising with Builders Square, BMC West, Ernst Home & Nursery and Home Depot.
 
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Ersan Sayman, 51, is our Executive Vice President, Merchandising, responsible for all of our merchandising and visual merchandising functions. He joined the Company as a Merchant in 2003, was promoted to Vice President in 2012, Senior Vice President in 2015, and Executive Vice President, Merchandising in 2022. Mr. Sayman previously held a variety of managerial positions at Polat Holding Group, a leading Turkish building materials producer, in the United States and Turkey. Mr. Sayman brings over 28 years of domestic and international flooring and building materials experience. He has a B.A. degree from Dokuz Eylul University in Turkey.
 
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EXECUTIVE COMPENSATION
COMPENSATION DISCUSSION AND ANALYSIS
Introduction
In this Compensation Discussion and Analysis, we address our philosophy, programs and processes related to the compensation paid or awarded for Fiscal 2023 to our NEOs listed in the Summary Compensation Table for Fiscal 2023 that follows this discussion.
The following individuals were our NEOs for Fiscal 2023:

Thomas V. Taylor, who serves as Chief Executive Officer and a member of our Board and is our principal executive officer;

Bryan. H. Langley, who serves as Executive Vice President and Chief Financial Officer and is our principal financial officer;

Trevor S. Lang, who serves as President;

David V. Christopherson, who served as Executive Vice President, Secretary and General Counsel, until his promotion to Executive Vice President, Chief Administrative Officer & Chief Legal Officer on February 22, 2024; and

Brian K. Robbins, who served as Executive Vice President, Business Development Strategy, until his departure from the Company on March 1, 2024.
Highlights of 2023 Business Performance
We believe that our NEOs were instrumental in helping us perform well in Fiscal 2023, despite macroeconomic challenges. Our positive results are evidenced by the following:

the Company opened 31 new warehouse-format stores;

net sales increased 3.5% to $4,413.9 million in Fiscal 2023, compared to $4,264.5 million in Fiscal 2022; and

gross margin increased 160 basis points to 42.1% in Fiscal 2023, compared to 40.5% in Fiscal 2022.
For more information on our financial results for Fiscal 2023, see our Annual Report on Form 10-K for the fiscal year ended December 28, 2023, filed with the SEC on February 22, 2024.
Fiscal 2023 Compensation
Compensation Philosophy and Objectives
The primary objectives of our executive pay program are to:

attract and retain an exceptional executive team needed to outperform our peers and execute our strategy;

drive our short- and long-term growth objectives;

align the interests of our executive team with that of our shareholders; and

align our organization’s pay programs with metrics that we generally view as being important drivers of our performance.
 
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To achieve that, our compensation program relies on the following core principles:
Core Principles
Simplicity and Transparency
Base salary, incentive compensation and equity awards should be easy for executives and for our shareholders to understand.
Linked to our Strategy
Our pay design should create a direct bridge to our strategy, and clearly reflect our key short- and long-term business objectives.
Attractive Compensation for Top Talent
Pay quantums and design should be compelling enough to attract the best talent we can to support the successful execution of our strategies.
Pay for Performance
Compensation should be paid only when financial performance levels achieved align with the strategic and financial priorities set by the Board.
Appropriate Risk Orientation
The more senior a role, the more the total mix of that role’s compensation should be “at risk.” However, our compensation programs are designed in a manner that is intended to provide for performance-based compensation that is both challenging and achievable, and that does not encourage excessive or unnecessary risk-taking.
While the Compensation Committee considers competitive compensation data to generally inform decisions relating to NEO compensation, it does not seek to benchmark NEO compensation to any particular level in the market.
The material components of our executive compensation program and their purposes and key characteristics are summarized in the following chart:
What We Do
What We Don’t Do

Pay-for-Performance: Majority of fiscal year pay is performance-based and not guaranteed

Annual Compensation Risk Review: Our Compensation Committee annually assesses risk in compensation programs associated with regulatory, stockholder and market changes

Share Ownership Guidelines: We maintain meaningful share ownership guidelines

Annual Assessment of Compensation Program: Our Compensation Committee annually assesses the design and alignment of our incentive plans in relation to performance goals, business strategy, organizational priorities and shareholder interests

Maximum Payouts: We limit both short-term and long-term incentive payouts as a percentage of target awards

Clawback Policies: All cash-based incentive or performance-based equity compensation granted to our NEOs is subject to our Clawback Policies
X
No Excise Tax Gross-ups: The Company does not provide any excise tax gross-up payments in connection with a change in control
X
No Tax Gross-ups for Perquisites: The Company does not provide tax gross-ups to NEOs for the perquisites we provide
X
No Hedging or Pledging: NEOs are prohibited from engaging in hedging transactions, pledging Company stock as collateral and similar arrangements with respect to the Company’s securities
X
No Problematic Option Practices: The Company does not have a practice of granting discounted stock options, extending the original option term, or repricing or exchanging underwater options
 
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Elements of Our Executive Compensation Program
For Fiscal 2023, our executive compensation program consisted of the following elements:
[MISSING IMAGE: tb_elements-4c.jpg]
We do not have formal policies relating to the allocation of total compensation among the various elements of our compensation program. We generally allocate compensation between short-term and long-term components and between cash and equity in a manner that we believe will maximize executive performance and retention. The variable pay elements (annual cash incentive and long-term incentive equity awards) comprise an increasingly larger proportion of total compensation of our senior executives as position level increases. This is consistent with our belief that these at-risk elements of compensation more closely align management’s interests with our financial performance and with our employees’ and stockholders’ interests.
For Fiscal 2023, approximately 93.4% of our current CEO’s target compensation and approximately 90.1% on average for our other NEOs, was at risk and contingent upon the achievement of corporate performance objectives, service requirements and/or share price performance. The components of total target compensation for Fiscal 2023 were:
[MISSING IMAGE: bc_fiscal-4clr.jpg]
Base Salary.   Base salary is a visible and stable foundation of our compensation program. The base salaries of our NEOs are intended to reflect the position, duties and responsibilities of each executive and the market for base salaries of similarly situated executives at other companies of similar size and in similar industries. On a prospective basis, we evaluate the mix of base salary, short-term incentive compensation and long-term incentive compensation to appropriately align the interests of our NEOs with those of our stockholders. When reviewing each executive’s base salary, the Compensation Committee considers the level of responsibility and complexity of the executive’s role, individual performance in the prior year, and the salaries paid for the same or similar positions in the market. In February 2023, the Compensation Committee and the Board, as applicable, approved salary increases for the NEOs, effective February 24, 2023, as set forth in the table that follows. Following review of benchmarking analysis against our peer group and in light of increased job duties and responsibilities for certain of our NEOs, the Compensation Committee and the Board, as applicable, determined to increase base salaries of the NEOs by approximately 2.9% to 8.7% after considering the factors listed above.
 
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Annual base salary rates for our NEOs in effect as of the end of Fiscal 2022 and Fiscal 2023 are listed below.
Name
Fiscal 2022
Base Salary
Fiscal 2023
Base Salary
Thomas V. Taylor
$ 1,030,000 $ 1,060,000
Bryan H. Langley
$ 375,000 $ 400,000
Trevor S. Lang
$ 575,000 $ 625,000
David V. Christopherson
$ 450,000 $ 475,000
Brian K. Robbins
$ 450,600 $ 465,000
Annual Cash Incentive Bonuses.   Our NEOs are eligible to receive annual cash incentives. We consider annual cash incentive bonuses to be “at-risk” compensation. As “at-risk” compensation, we increase the size of the target incentive as a percentage of base compensation, proportionate to each NEO’s position and responsibilities. The annual incentives are intended to reward our NEOs for achieving target operating income and net sales objectives established by the Compensation Committee at the beginning of the year. The maximum annual cash incentive bonus payable pursuant to the 2023 Annual Performance Bonus Program (the “2023 Bonus Program”) is 200% of the NEO’s applicable target bonus.
For Fiscal 2023 under the 2023 Bonus Program, our NEOs were eligible to receive an annual incentive with a target amount equal to a percentage of their respective full annual base salary earned in the fiscal year, as follows:
Name
Target 2023
Bonus as a %
of Base Salary
Target 2023
Bonus ($)
Thomas V. Taylor
125% $ 1,325,000
Bryan H. Langley
60% $ 240,000
Trevor S. Lang
70% $ 437,500
David V. Christopherson
65% $ 308,750
Brian K. Robbins
65% $ 302,250
Under the 2023 Bonus Program, annual incentives for our NEOs were calculated based on achievement of Fiscal 2023 targeted net sales (20% weighting) and operating income (80% weighting), as determined by the Compensation Committee, calculated as follows:
Performance Metric
Threshold
($ in millions)
Target
($ in millions)
Maximum
($ in millions)
Weighting
(%)
Net Sales
$ 4,420.7 $ 4,778.1 $ 5,016.0 20%
Operating Income
$ 346.6 $ 431.0 $ 479.4 80%
The goals were based on the Fiscal 2023 business outlook and plan. The Fiscal 2023 business outlook included our focus on store expansion and increased overall sales. However, during Fiscal 2023, operating income was impacted by macroeconomic pressures outside of the Company’s control, including inflation and increased interest rates. While the net sales performance target was nearly achieved, the relatively low weighting of net sales against the operating income performance metric meant that achievement of above-threshold performance for that metric was not sufficient to overcome below-threshold performance with respect to the operating income metric. Based on our achievement of 92.4% of our net sales target and 75.9% of our operating income target (adjusted in accordance with the 2023 Bonus Program to reflect the impact of costs such as earn-out liabilities and other transaction costs related to our acquisitions and costs related to employer taxes for stock-based compensation programs), the thresholds for payout under the 2023 Bonus Program were not achieved, resulting in no payout to the NEOs under the 2023 Bonus Program as reflected below.
 
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Performance Metric
Target
($s in millions)
Actual
($s in millions)
Percentage of
Target (%)
Weighting
(%)
Payout
(%)
Net Sales
$ 4,778.1 $ 4,413.9 92.4% 20% 0.0%
Operating Income*
$ 431.0 $ 327.1 75.9% 80% 0.0%
Equity Incentive Awards
2017 Stock Incentive Plan
In connection with our 2017 initial public offering (“IPO”), our Board adopted and our stockholders approved the Floor & Decor Holdings, Inc. 2017 Stock Incentive Plan, as amended (the “2017 Plan”), pursuant to which we may grant incentive stock options, non-qualified stock options, restricted stock, other stock-based awards and performance-based cash awards to our employees, including the NEOs, which may be subject to such service-based, performance-based or other vesting factors or criteria as determined by the Compensation Committee in its discretion in accordance with the 2017 Plan.
Fiscal 2023 Equity Awards
We generally grant equity incentive awards to our NEOs annually, with interim grants for new hires and promotions after the regular grant date. We believe that regular equity-based long-term incentive awards align the interests of our NEOs with our stockholders and focus our NEOs on our long-term growth. In Fiscal 2023 we granted a mix of service-based restricted stock unit awards (RSUs) and performance and service-based performance stock units (PSUs). The Compensation Committee believes that awarding a mix of RSUs and PSUs encourages our NEOs to create and sustain stockholder value over longer periods because their value is directly attributable to changes in the price of our common stock over time, and because their full value cannot be realized until vesting occurs, which generally requires continued employment for multiple years and/or achievement of performance goals. The Compensation Committee views RSUs as a form of long-term incentive that focuses our NEOs on long-term strategy execution. In addition to the considerations applied to RSUs, the Compensation Committee views the long-term financial metrics applicable to the PSUs, which incorporate both operating profit and balance sheet return on investment performance, as valuable to ensure that our NEOs are appropriately incentivized to create long-term value for the Company and the Company’s stockholders and to effectively allocate capital toward investments that are intended to provide future growth for the Company’s stockholders.
In determining the size of equity-based grants, the Compensation Committee considers, among other things, the number of shares available under the 2017 Plan, the potential dilutive impact of such grants on our stockholders and the individual’s position with the Company. The number of RSUs and PSUs granted to our NEOs in Fiscal 2023 is shown below.
Annual Awards
Name
RSUs
Granted (#)
PSUs
Granted (#)*
Thomas V. Taylor
20,525 20,525
Bryan H. Langley
2,767 2,767
Trevor S. Lang
4,426 4,426
David V. Christopherson
3,873 3,873
Brian K. Robbins
3,043 3,043
*
The number of PSUs shown is based on the target number of PSUs that may become vested, subject to the attainment of the performance metrics applicable to the PSUs.
The RSUs granted in Fiscal 2023 as a part of Annual Awards vest in three ratable annual installments on each of the first three anniversaries of the grant date, generally subject to the grantee’s continued employment as of each applicable vesting date. The vesting of the PSUs granted in Fiscal 2023 as a part of Annual Awards is subject to achievement of a three-year average ROIC of at least 13.0%, and the achievement
 
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of Adjusted EBIT targets, as described in the following table. To the extent Adjusted EBIT target performance falls between the levels specified below, the vesting percentage will be determined on a straight-line interpolated basis. The percentage of the PSUs that becomes vested (if any) will be based on the Compensation Committee’s certification of the Company’s achievement with respect to the performance targets over the three-year performance period. We believe this design most effectively incentivizes our NEOs to drive earnings growth as well as efficiently allocate capital. The Fiscal 2023 PSUs are not expected to meet the threshold requirements for vesting based on performance as of the end of Fiscal 2023. At the end of the performance period in December 2025, the Compensation Committee will review and certify the level of achievement of performance goals with respect to the Fiscal 2023 PSUs, which will be described in our proxy statement for Fiscal 2026.
Three-Year Average ROIC
Adjusted EBIT
Percent of
PSUs Vested
Equal to
or greater
than 13.0%
Equal to or greater than $570,000,000
but less than $620,600,000
(Represents CAGR of 12%)
50%
Equal to or greater than $620,600,000
but less than $695,200,000
(Represents CAGR of 16%)
100%
Equal to or greater than $695,200,000
but less than $765,800,000
(Represents CAGR of 20%)
150%
Equal or greater than $765,800,000
(Represents CAGR of 24%)
200%
With respect to PSUs granted as part of Fiscal 2023 Annual Awards, vesting generally requires continued employment through the date the Compensation Committee certifies the extent to which the Adjusted EBIT and ROIC performance criteria have been met. However, if an NEO’s employment is terminated by the Company without Cause (as defined in the applicable NEO’s employment agreement) or, with respect to Mr. Taylor, if he terminates his employment for Good Reason (as defined in his employment agreement), during the one-year period following a Change in Control (as defined in the 2017 Plan), the PSUs would become fully vested based on target performance.
“Adjusted EBIT” is a non-GAAP financial measure, and is generally defined as earnings before interest and taxes, adjusted for certain special, unusual or non-recurring items affecting the Company or its financial statements, items related to the disposal of business or discontinued operations (including termination expenses), certain items related to acquisitions and the impact of acquisitions, employer taxes tied to stock-based compensation, asset impairments, one-time personnel-related expenses, material litigation charges or gains, goodwill impairment charges, items related to equity and/or debt related transactions, items related to changes in accounting principles or applicable law or regulations, and certain other adjustments as determined to be appropriate by the Compensation Committee (which may include adjustments taken into account in calculating Adjusted EBIT as reported by the Company in one or more of its earnings releases for the performance period), in each case, as determined by the Compensation Committee to be appropriate taking into account all relevant objective information or financial data, with the Compensation Committee’s determination to be final and conclusive on all parties.
“ROIC” is generally defined as, with respect to each fiscal year during the three-year performance period, the Company’s return on invested capital for a fiscal year, determined as the quotient of (i) an amount equal to (A) the Company’s Adjusted EBIT, plus (B) the Company’s expenses and amortization related to the Company’s leased property, minus (C) the product of (I) the Company’s Adjusted EBIT, (II) plus the Company’s expenses and amortization related to the Company’s leased property multiplied by (III) the Company’s effective tax rate (the average tax rate applicable to pre-tax profits that would be applied to the next dollar of income, as determined by the Committee), divided by (ii) an amount equal to (A) the previous five-quarter-average net fixed assets, as reported by the Company in its quarterly and annual financial statements for the five quarters ending with the last quarter of the applicable fiscal year, plus (B) the Company’s then-current net working capital, as reported by the Company in its quarterly and annual financial statements for the five quarters ending with the last quarter of the applicable fiscal year (calculated as (1) total current assets, minus (2) cash and cash equivalents, less (3) total current liabilities, minus (4) current portion of debt), plus (C) the Company’s expenses and amortization related to the Company’s leased
 
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property multiplied by 7.5, in each case determined in accordance with generally accepted accounting principles, in each case as determined by the Compensation Committee in its sole discretion, with such determination to be final and conclusive on all parties. Our obligations with respect to our leased properties represent a substantial capital commitment by the Company. By including a multiple of the Company’ s expenses and amortization related to the Company’ s leased properties as an addition to the denominator of the formula used to calculate ROIC, achieving the annual ROIC goal was made more challenging.
Special Performance Stock Unit Award
As previously disclosed in our proxy statement for Fiscal 2022 under the section titled “— Fiscal 2022 Compensation — Elements of Our Executive Compensation Program — Fiscal 2023 Equity Awards —Special Performance Unit Stock Award”, to recognize the past achievements of our NEOs and to further propel the execution of the Company’s long-term strategy, in February 2023 the Compensation Committee and the Board, as applicable, approved a grant of special performance- and service-based PSUs (the “Special PSUs”) to our NEOs under the 2017 Plan.
The Special PSU design includes the following key features:

Three-year performance period, covering Fiscal 2023 – 2025;

Mix of performance- and service-based Special PSUs and service-based Special PSUs as outlined in the table below;
Equity Vehicle
Percentage of
Total Special
PSUs Granted
Performance- and service-based Special PSUs
67%
Service-based Special PSUs
33%

Performance- and service-based Special PSUs

Special PSUs vest based on achievement of performance goals as outlined in the table below;
Performance Goal
Percentage of
Total Special
PSUs Granted
Adjusted EBIT/Average Adjusted EBIT ROIC Special PSUs
45%
Relative Total Shareholder Return (rTSR) Special PSUs
22%

rTSR Special PSUs vest based on achievement of relative TSR against a specified peer group and no above-target vesting can occur in the event of negative three-year absolute TSR;

Vesting based on achievement of threshold, target, or maximum performance metrics and linear interpolation for performance achieved between the various goals;

The maximum number of Special PSUs that can vest is 100% of the service-based Special PSUs and 150% of the performance- and service-based Special PSUs;

Service-based PSUs will vest as outlined in the table below;
NEO
Continued Service Through Date
Percent Vesting
Mr. Taylor
First Anniversary of Grant Date
0%
Second Anniversary of Grant Date
33%
Third Anniversary of Grant Date
67%
Other NEOs
First Anniversary of Grant Date
0%
Second Anniversary of Grant Date
25%
Third Anniversary of Grant Date
25%
Fourth Anniversary of Grant Date
50%
 
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No automatic accelerated vesting upon change in control or termination of employment or service.
Adjusted EBIT/Average Adjusted EBIT ROIC PSUs
Adjusted EBIT/Average Adjusted EBIT ROIC PSUs vest based on achieving threshold, target, or maximum levels of Adjusted EBIT as of the end of the performance period and a targeted level of Average Adjusted EBIT ROIC for the performance period, as follows:
Three-Year Average
Adjusted EBIT ROIC
Adjusted EBIT
Percent of
PSUs Vested
Equal to
or greater
than 13.0%
Equal to or greater than $610,300,000
but less than $693,000,000
(Represents CAGR of 15%)
50% (Threshold)
Equal to or greater than $693,000,000
but less than $783,200,000
(Represents CAGR of 20%)
100% (Target)
Equal to or greater than $783,200,000
(Represents CAGR of 25%)
150% (Maximum)
As noted above, vesting of the Adjusted EBIT/Average Adjusted EBIT ROIC PSUs requires achievement of both the Adjusted EBIT and Average Adjusted EBIT ROIC goals. Regardless of the achievement of the Adjust EBIT goal, if the Average Adjusted EBIT ROIC of at least 13.0% is not achieved, no Adjusted EBIT/Average Adjusted EBIT ROIC PSUs will vest. The maximum number of Adjusted EBIT/Average Adjusted EBIT ROIC PSUs that can vest is 150% of the target number of Adjusted EBIT/Average Adjusted EBIT ROIC PSUs.
For this purpose, “Adjusted EBIT” is determined in a manner consistent with the annual PSUs (described above) but includes an adjustment for the stock-based compensation expense of the Special PSUs, and “Average Adjusted EBIT ROIC” is determined based on the three-year average of the Company’s return on invested capital for the performance period (calculated as Adjusted EBIT divided by the five-quarter average net working capital and net fixed assets).
rTSR PSUs
Vesting of rTSR PSUs is determined based on the Company’s average TSR as of the last trading day of the three-year performance period as compared to threshold, target, and maximum levels in relation to the rTSR Peer Group, determined without regard to the Company, as set forth in the table below. If the three-year average TSR for the performance period falls between the percentiles specified in the table, the payout percentages shall be determined on a straight-line interpolated basis. Additionally, the rTSR PSUs will not be eligible to vest above the target number of rTSR PSUs if the Company’s three-year absolute TSR is negative.
Average
Three-year TSR
Percent of rTSR
PSUs Vested
35th Percentile
50% (Threshold)
55th Percentile
100% (Target)
75th Percentile
150% (Maximum)
The rTSR Peer Group is comprised of the following companies in the specialty retail and household durables industries, with exposure to homebuilding and/or home improvement markets.
 
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Beacon Roofing Supply, Inc.
Williams-Sonoma, Inc.
Ulta Beauty, Inc.
Tractor Supply Company
Haverty Furniture Companies, Inc.
Ethan Allen Interiors Inc.
The Home Depot, Inc.
Interface, Inc.
Trex Company, Inc.
The Sherwin-Williams Company
SiteOne Landscape Supply, Inc.
Five Below, Inc.
Sleep Number Corporation
Lowe’s Companies, Inc.
Mohawk Industries ,inc.
LL Flooring Holdings, Inc.
Tile Shop Holdings, Inc.
The Aaron’s Company, Inc.
Ferguson plc
The number of Special PSUs granted to our NEOs in Fiscal 2023 is shown below. In general, the number of Special PSUs granted to our NEOs in Fiscal 2023 was determined based on the respective NEOs’ job responsibilities and expected future contribution to our long-term performance and value creation, and competitive market data. The Adjusted EBIT/Average Adjusted EBIT ROIC Special PSUs are not expected to meet the threshold requirements for vesting based on performance as of the end of Fiscal 2023. At the end of the performance period in December 2025, the Compensation Committee will review and certify the level of achievement of performance goals with respect to the Special PSUs, which will be described in our proxy statement for Fiscal 2026.
Name
Special PSUs
Granted
(#)*
Adjusted EBIT /
Average Adjusted
EBIT ROIC PSUs
(#)*
rTSR PSUs
(#)*
Service PSUs
(#)*
Thomas V. Taylor
107,322 49,790 21,019 36,513
Bryan H. Langley
10,733 4,979 2,102 3,652
Trevor S. Lang
85,857 39,832 16,815 29,210
David V. Christopherson
32,197 14,937 6,306 10,954
Brian K. Robbins
21,465 9,958 4,204 7,303
*
The number of Special PSUs shown is based on the target number of PSUs that may become vested.
401(k) Plan and other Benefits
All full-time employees are eligible to participate in our 401(k) plan after six months of service and are eligible to receive matching contributions from us after six months of service. We match employee contributions in cash at a rate of 45% of the first 5% of base compensation that an employee contributes, with graded vesting over a six-year period. Our NEOs are also eligible for the Company matching contribution, subject to regulatory limits on contributions to 401(k) plans. Messrs. Langley, Lang, Christopherson and Robbins each participate in the 401(k) plan. In addition to participation in our 401(k) plan, we provide our NEOs with employer paid group term life insurance. Pursuant to the Company’s aircraft policy, in order to maximize productivity and ensure that Mr. Taylor can be immediately available to respond to business priorities, we pay for, or reimburse costs of, certain air travel arising in connection with Mr. Taylor’s regular business-related commuting to and from our corporate office and certain personal travel for Mr. Taylor and/or his family members or other guests. Mr. Taylor’s usage of the Company’s aircraft policy is reviewed by the Compensation Committee on an annual basis. Amounts paid and/or reimbursed under the Company’s aircraft policy constitute taxable income to Mr. Taylor, and we do not gross-up or in any way compensate Mr. Taylor for income tax owed in respect of such amounts. The costs relating to business-related commuting and personal travel by Mr. Taylor and/or his guests are reported as other compensation in the “All Other Compensation” column of the “Summary Compensation Table” below.
Employment Agreements
We are party to employment agreements with Messrs. Taylor, Lang, Christopherson, Robbins (as amended and restated in February 2020, each as amended on August 1, 2023, with respect to Mr. Robbins, as subsequently amended on August 25, 2023, and with respect to Mr. Christopherson, as subsequently
 
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amended on February 22, 2024) and Mr. Langley (effective as of February 2023, as amended on August 1, 2023) (the “Employment Agreements”). Each Employment Agreement provides for the payment of base salary and certain other benefits. Each of the NEOs is also eligible to earn an annual bonus equal to a percentage of base salary, based on the achievement of performance criteria.
The NEOs are also eligible to receive severance benefits in the event of certain terminations of employment. For a more detailed description of such benefits, see “Potential Payments upon Termination or Change in Control.”
Restrictive Covenants
Each of the NEOs is subject to certain non-compete and non-solicitation restrictions while employed and for one year after termination of employment (or, in the case of Mr. Taylor, for two years after termination of employment). In addition, each NEO is subject to confidentiality and non-disparagement restrictions.
Determination of Compensation
Role of the Compensation Committee in Executive Compensation
During Fiscal 2023, the Compensation Committee (and, with respect to Messrs. Taylor and Lang, the Board), made all decisions regarding the compensation levels of our executive officers.
It is the Compensation Committee’s responsibility to:

oversee the design of our executive compensation programs, policies and practices;

determine the types and amounts of most compensation for executive officers; and

review and approve the adoption, termination and amendment of, and to administer and, as appropriate, make recommendations to the Board regarding, our cash incentive compensation and equity incentive compensation plans.
In addition, as described in these proxy materials, the Compensation Committee has directly engaged Korn Ferry to assist in its review of compensation for our executive officers.
In Fiscal 2023, the Compensation Committee made recommendations to the Board regarding, and the Board approved, the individual compensation of Messrs. Taylor and Lang.
Role of Executive Officers in Determining Executive and Director Compensation
As described above, during Fiscal 2023, the Compensation Committee and, as applicable, the Board made all decisions regarding the compensation of our executive officers and directors, after considering recommendations by Mr. Taylor (other than with respect to his own compensation).
Our human resources department supported the Compensation Committee’s work, and in some cases acted under delegated authority to administer compensation programs.
Role of the Compensation Consultant
The Compensation Committee has retained Korn Ferry as its consultant to provide advice on executive and director compensation practices. Korn Ferry’s support generally includes analysis related to the competitiveness of our executive and director compensation programs, periodic reviews of our compensation peer group, the presentation of compensation and governance trends to the Compensation Committee, and other mandates as directed by the Compensation Committee.
In Fiscal 2023, we paid Korn Ferry $158,773, which consisted of approximately $143,000 for services related to executive and director compensation and $15,773 for services related to store employee compensation.
The Compensation Committee annually reviews the independence of Korn Ferry as its consultant under applicable SEC and NYSE rules on conflict of interest. Following this review, the Compensation
 
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Committee determined that Korn Ferry’s work for us does not raise any conflicts of interest. The Compensation Committee’s evaluation included consideration of all services provided to us, the amount of fees received as a percentage of Korn Ferry’s annual revenue, its policies and procedures designed to prevent conflicts of interest, any business or personal relationships between Korn Ferry and the members of the Compensation Committee or executive officers and any ownership of our stock by the advisors providing executive and director compensation services to us.
Peer Group Construction
In making executive compensation determinations for Fiscal 2023, we relied on the experience of the members of our Compensation Committee, as well as the input of our Chief Executive Officer (other than with respect to his own compensation), who has many years of experience in our industry. For Fiscal 2023, the Compensation Committee reviewed compensation data from the public filings for the following companies, which our Compensation Committee identified as our peer group for Fiscal 2023. The following group of companies reflect certain changes from the group reviewed in the prior fiscal year to reflect revenue size, growth rates and other characteristics that the Compensation Committee believes provide a more appropriate comparison.
Beacon Roofing Supply, Inc.
Williams-Sonoma, Inc.
Ulta Beauty, Inc.
Lululemon Athletica Inc.
Pool Corporation
Tempur Sealy International, Inc.
RH
SiteOne Landscape Supply, Inc.
Deckers Outdoor Corporation
Five Below, Inc.
Sleep Number Corporation
Ollie’s Bargain Outlet Holdings, Inc.
Etsy, Inc.
While the Compensation Committee considered this data from time to time to generally inform decisions relating to NEO compensation, it did not seek to benchmark our NEO compensation to any particular level. The Compensation Committee expects to periodically evaluate competitive market data to include the most suitable peer group as well as other market data deemed relevant.
The Compensation Committee expects to periodically review and update this peer group and to utilize Korn Ferry for peer group analysis in determining and developing compensation packages for our NEOs.
Say-on-Pay Consideration
At our 2023 annual meeting of stockholders, we held a stockholder advisory vote on the compensation of our NEOs in Fiscal 2022 (“2023 say-on-pay”). Our stockholders overwhelmingly approved the compensation of our NEOs, with approximately 93.3% of the votes cast in favor of our 2023 say-on-pay resolution. We believe that the outcome of our 2023 say-on-pay vote signals our stockholders’ support of our compensation programs and philosophy, specifically our efforts to retain and motivate our NEOs and to align pay with performance and the long-term interests of our stockholders.
The Compensation Committee reviewed and considered these voting results, among other factors described in this Compensation Discussion and Analysis, in evaluating our executive compensation programs and philosophy.
Tax and Accounting Considerations
As a general matter, our Board and the Compensation Committee review and consider the various tax and accounting implications of our existing and proposed compensation programs.
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718 requires us to recognize an expense for the fair value of share-based compensation awards. Grants of equity incentive awards under the 2017 Plan are accounted for under FASB ASC Topic 718. The Board and the Compensation Committee consider the accounting implications of significant compensation decisions, especially in connection with decisions that relate to our long-term incentive program. As
 
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accounting standards change, we may revise certain programs to appropriately align accounting expenses of our share-based compensation awards with our overall executive compensation philosophy and objectives.
Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”) generally disallows publicly-listed companies a tax deduction for compensation in excess of $1,000,000 paid to certain current and former executive officers (the “covered employees”). Generally, compensation in excess of $1,000,000 paid to each of the covered employees will not be deductible by us. While the Compensation Committee considers the impact of Section 162(m) of the Code when designing and implementing our compensation programs, the Compensation Committee will continue to develop compensation programs that use a full range of criteria important to our success, recognizing that compensation paid under such programs may not be deductible under Section 162(m) of the Code. In the exercise of our business judgment, we continue to have the flexibility to award compensation that may not be tax-deductible if we determine that is appropriate.
Hedging and Pledging Policy
We have an insider trading policy, which, among other items, expressly prohibits Covered Persons (defined as our and our subsidiaries’ officers, directors and employees) as well as their immediate families and members of their households, from engaging in transactions of a speculative nature involving our common stock, including, but not limited to, buying or selling puts or calls or other derivative securities based on our common stock. In addition, such persons are prohibited from engaging in short sales of our common stock or entering into hedging or monetization transactions or similar arrangements with respect to our common stock (other than with respect to common stock granted under our employee stock purchase plan).
Stock Ownership Guidelines
To further align the long-term interests of our executives and our stockholders, in connection with our IPO, we adopted stock ownership guidelines applicable to our Chief Executive Officer, other executive officers and non-employee directors. The guidelines require our executives and non-executive directors to maintain the following beneficial ownership of shares of our common stock (measured in market value):
Group
Required ownership
Chief Executive Officer
5 times annual base salary
President / Executive Vice Presidents
3 times annual base salary
Senior Vice Presidents
2 times annual base salary
Non-employee directors
5 times annual cash retainer
Our executives and non-employee directors have five years from the effective date of their respective election, appointment or promotion, as the case may be, to satisfy these stock ownership guidelines. For the purposes of these stock ownership guidelines, the annual consulting fee received by Mr. West under his consulting agreement with us will be deemed to be his annual cash retainer. For purposes of determining ownership levels, shares of common stock owned outright, unvested shares of restricted stock and shares underlying vested and certain unvested, in-the-money options to purchase common stock are included. Shares of common stock underlying an award subject to performance-vesting for which the performance criteria have not been satisfied are not included. As of the end of Fiscal 2023, all of our executive officers were in compliance with these guidelines.
Clawback Policies
In order to encourage sound financial reporting and enhance individual accountability, we maintain a discretionary clawback policy for our executive officers (the “Incentive Compensation Recoupment Policy”), which provides that if our financial statements are restated, we may seek to recover or cancel any cash-based incentive or performance-based equity compensation paid or payable that was awarded as a result of achieving financial performance goals that are not met under the restated financial results. In Fiscal 2023, we amended our Incentive Compensation Recoupment Policy to cover Executive Vice Presidents and Senior Vice Presidents of the Company, and to allow for recovery of compensation if a covered person engages in certain types of misconduct. Additionally, in Fiscal 2023, we adopted our Dodd-Frank Clawback Policy consistent with the requirements recently adopted by the SEC and the New York Stock Exchange (the
 
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“Dodd-Frank Policy” and, together with the Incentive Compensation Recoupment Policy, the “Clawback Policies”). Under the Dodd-Frank Policy, except for certain enumerated exceptions, we are required to recoup erroneously received incentive-based compensation from each current or former executive officer of the Company if we are required to prepare a restatement due to material noncompliance with financial reporting requirements under U.S. securities laws. For the complete terms of our Incentive Compensation Recoupment Policy and our Dodd-Frank Policy, please see exhibits 10.56 and 97, respectively, of our Form 10-K for the fiscal year ended December 28, 2023, filed with the SEC on February 22, 2024.
 
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COMPENSATION COMMITTEE REPORT
The Compensation Committee has reviewed and discussed with management the above Compensation Discussion and Analysis. Based on our review and discussions with management, the Compensation Committee recommended to the Board that the Compensation Discussion and Analysis be included in this Report.
COMPENSATION COMMITTEE
Norman Axelrod (Chairperson)
Melissa Kersey
Peter Starrett
 
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COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS
Summary Compensation Table
The following table contains information about the compensation paid to or earned by each of our NEOs during Fiscal 2021, Fiscal 2022 and Fiscal 2023.
Name and Principal Position
Fiscal
Year
Salary
($)
Bonus
($)
Stock
Awards
($)
(4)
Option
awards
($)
(4)
Non-equity
incentive plan
Compensation
($)
All other
Compensation
($)
(5)
Total ($)
Thomas V. Taylor – Chief Executive Officer
2023 1,054,231 13,710,223 0 752,380 15,516,834
2022 1,025,385 3,605,000 1,007,880 644,049 6,282,314
2021 1,000,000 825,049 824,938 2,000,000 493,674 5,143,661
Bryan H. Langley – Executive Vice President and Chief Financial Officer(1)
2023 395,192 1,500,249 0 5,481 1,900,922
2022 302,039 871,720 116,373 5,700 1,295,832
2021
Trevor S. Lang – President(2)
2023 615,385 8,800,086 0 8,667 9,424,138
2022 536,808 800,000 295,481 8,058 1,640,347
2021 479,462 237,573 237,474 623,300 8,475 1,586,284
David V. Christopherson – Executive Vice President, Chief Administrative Officer & Chief Legal Officer(3)
2023 470,193 3,700,161 0 6,951 4,177,305
2022 442,308 600,000 226,074 6,307 1,274,689
2021 396,154 151,079 151,010 475,385 6,385 1,180,013
Brian K. Robbins – Executive Vice President, Business Development Strategy(6)
2023 462,116 2,550,135 0 11,121 3,023,372
2022 447,323 550,000 228,637 12,700 1,238,660
2021 430,662 151,079 151,010 516,794 9,136 1,258,681
(1)
Mr. Langley was promoted to Executive Vice President and Chief Financial Officer on November 29, 2022; previously he served as Senior Vice President, Finance and was not an NEO.
(2)
Mr. Lang was promoted to President on November 29, 2022; previously he served as Executive Vice President and Chief Financial Officer.
(3)
Mr. Christopherson was promoted to Executive Vice President, Chief Administrative Officer and Chief Legal Officer on February 22, 2024; previously he served as Executive Vice President, Secretary and General Counsel.
(4)
Amounts set forth in the Stock Awards and Option Awards columns represent the aggregate grant date fair value of awards granted in Fiscal 2023 computed in accordance with the FASB Accounting Standards Codification Topic 718 (“FASB ASC Topic 718”). All assumptions made in the valuations are contained and described in footnote 11 to the Company’s financial statements for Fiscal 2023 contained in our Annual Report on Form 10-K for the fiscal year ended December 28, 2023, filed with the SEC on February 22, 2024. The amounts shown in the table reflect the total fair value on the date of grant and do not necessarily reflect the actual value, if any, that may be realized by the NEOs.
(5)
Amounts in this column also include (i) 401(k) employer matching contributions of $5,192, $7,425, $6,231 and $7,425 and for Messrs. Langley, Lang, Christopherson, Robbins, respectively; (ii) employer-paid group term life insurance premiums of $2,322, $289, $1,242, $720, and $3,696 for Messrs. Taylor, Langley, Lang, Christopherson and Robbins, respectively; and (iii) employer-incurred costs under the Company’s aircraft policy in respect of commuting and personal travel by Mr. Taylor and/or his guests in the amount of $750,058, of which $516,276 related to commuting-related costs and $233,782 related to personal travel costs.
(6)
Mr. Robbins’s employment with the Company ended on March 1, 2024.
 
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Grants of Plan-Based Awards Table for Fiscal 2023
The following table contains information about each grant of an award made to our NEOs under any incentive plan in Fiscal 2023:
Name
Type of
Award
Grant
Date or
Performance
Period
Estimated Possible Payouts
Under Non-Equity
Incentive Plan Awards
(1)
Estimated Possible Payouts
Under Equity Incentive
Plan Awards
(2)
All
Other
Stock
Awards:
Number
of Shares
of Stock
or Units
(#)
(3)
Grant
Date
Fair
Value of
Restricted
Stock
Awards
($)
(4)
Threshold
($)
Target
($)
Maximum
($)
Threshold
(#)
Target
(#)
Maximum
(#)
Thomas V. Taylor
Annual Cash
Incentive
Bonus
2/27/2023 1,325,000 2,650,000
RSU
2/27/2023 20,525 1,855,050
PSU
2/27/2023 10,263 20,525 41,050 1,855,050
Special PSU
2/27/2023 71,918 107,322 142,727 10,000,123
Bryan H. Langley
Annual Cash
Incentive
Bonus
2/27/2023 240,000 480,000
RSU
2/27/2023 2,767 250,081
PSU
2/27/2023 1,384 2,767 5,534 250,081
Special PSU
2/27/2023 7,193 10,733 14,274 1,000,087
Trevor S. Lang
Annual Cash
Incentive
Bonus
2/27/2023 437,500 875,000
RSU
2/27/2023 4,426 400,022
PSU
2/27/2023 2,213 4,426 8,852 400,022
Special PSU
2/27/2023 57,534 85,857 114,181 8,000,042
David V. Christopherson
Annual Cash
Incentive
Bonus
2/27/2023 308,750 617,500
RSU
2/27/2023 3,873 350,042
PSU
2/27/2023 1,937 3,873 7,746 350,042
Special PSU
2/27/2023 21,576 32,197 42,819 3,000,077
Brian K. Robbins
Annual Cash
Incentive
Bonus
2/27/2023 302,250 604,500
RSU
2/27/2023 3,043 275,026
PSU
2/27/2023 1,522 3,043 6,086 275,026
Special PSU
2/27/2023 14,384 21,465 28,546 2,000,083
(1)
Constitutes target and maximum award opportunities for our NEOs under the 2023 Bonus Program based on salaries earned in Fiscal 2023. See “— Fiscal 2023 Compensation — Elements of Our Executive Compensation Program — Annual Cash Incentive Bonuses” for information regarding the criteria applied in determining amounts payable under the awards. The actual amounts paid with respect to these awards are included in the “Non-Equity Incentive Plan Compensation” column in the Summary Compensation Table for Fiscal 2023.
(2)
Constitutes target and maximum award opportunities for our NEOs under the performance-based vesting of PSUs as outlined in the “— Fiscal 2023 Compensation — Elements of Our Executive Compensation Program — Fiscal 2023 Equity Awards” section.
(3)
Constitutes time-vested restricted stock unit awards granted to our NEOs. See “— Fiscal 2023 Compensation — Elements of Our Executive Compensation Program — Fiscal 2023 Equity Awards”.
 
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(4)
Pursuant to the SEC rules, RSUs and PSUs are valued in accordance with FASB ASC Topic 718. All assumptions made in the valuations are contained and described in footnote 11 to the Company’s financial statements for Fiscal 2023 contained in our Annual Report on Form 10-K for the fiscal year ended December 28, 2023, filed with the SEC on February 22, 2024. The amounts shown in the table reflect the total fair value on the date of grant and do not necessarily reflect the actual value, if any, that may be realized by the NEOs.
 
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Outstanding Equity Awards at Fiscal Year-End 2023
The following table contains information about outstanding equity awards as of the last day of Fiscal 2023 for each of our NEOs:
Option Awards
Stock Awards
Name
Grant
Date
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
(1)
Option
Exercise
Price
($)
Option
Expiration
Date
Number
of shares
or units
of stock
that
have not
yet
vested
(#)
(2)
Market
value
of shares
or units
of stock
that
have
not yet
vested
($)
(2)
Equity
Incentive
Plan 
Awards:
Number Of
Unearned
Shares,
Units Or
Other
Rights
That Have
Not Vested
(#)
(3)
Equity
Incentive
Plan 
Awards:
Market Or
Payout
Value Of
Unearned
Shares,
Units Or
Other Rights
That Have
Not Vested
($)
(3)
Thomas Taylor 9/30/2016 68,397 9.99 9/30/2026
4/26/2017 224,618 21.00 4/26/2027
11/2/2018 135,301 31.98 11/2/2028
2/24/2020 42,375 14,125 57.70 2/24/2030 1,788 203,635
3/1/2021 9,880 9,879 95.68 3/1/2031 4,311 490,980
2/28/2022 12,568 1,431,370
2/27/2023 20,525 2,337,592
2/27/2023 10,263 1,168,853
2/27/2023 36,513 4,158,466 56,424 6,426,129
Bryan Langley 5/20/2014 2,575 5.26 5/20/2024
7/13/2016 3,110 7.59 7/13/2026
9/30/2016 1,159 9.99 9/30/2026
4/26/2017 2,830 21.00 4/26/2027
11/6/2017 2,512 40.48 11/6/2027
11/2/2018 4,101 31.98 11/2/2028
5/6/2019 4,592 44.05 5/6/2029
2/24/2020 1,815 605 57.70 2/24/2030 230 26,195
3/1/2021 429 428 95.68 3/1/2031 561 63,892
2/28/2022 899 102,387
11/29/2022 7,363 838,572
2/27/2023 2,767 315,134
2/27/2023 1,384 157,624
2/27/2023 3,652 415,926 5,643 642,681
Trevor Lang 9/30/2016 13,000 9.99 9/30/2026
4/26/2017 44,116 21.00 4/26/2027
11/2/2018 38,951 31.98 11/2/2028
2/24/2020 12,198 4,067 57.70 2/24/2030 515 58,653
2/24/2020(4) 12,999 1,480,456 42,936 4,889,981
3/1/2021 2,844 2,844