Board Justification

The Committee designs our compensation programs with the following philosophies and objectives in mind: Pay for Performance: Link incentive compensation to performance through objectives that align with shareholder and other stakeholder interests and drive annual and long-term results. The higher the level in the organization, the greater the link to performance (more at-risk; making leaders more accountable). Alignment with Shareholders: Align executive and long-term shareholder interests by linking pay to achievement of performance objectives viewed as drivers of sustained value creation, delivering a significant portion of pay in equity compensation, and requiring executive officers to accumulate and hold a meaningful amount of SBH stock. Drive Annual and Long-Term Results: Ensure performance objectives are understandable and drive delivery of financial results and successful execution of strategic initiatives. Ensure performance goals align to our annual and long-term strategies and financial operating plans. Pay Competitively: Ensure pay remains competitive with peer companies in order to attract, motivate and retain associates. Target the 50th percentile of market for all compensation components, adjusted by various factors such as individual performance, responsibilities, experience, internal equity, and expected future contributions. Mitigate Undue Risk: Use a mix of annual and long-term incentives and financial and strategic metrics. Use caps for annual incentives and use vesting periods, caps, and restrictive covenants for long-term incentives. Maintain clawback and equity ownership policies. Review and approval of annual and long-term incentive performance goals, results and payouts by the Committee.

Board Justification

N/A

Board Justification

Includes Company matching contributions to 401(k) and Life Insurance Premiums

Board Justification

N/A