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In a recent filing with the SEC, Newell Brands Inc. (NASDAQ:NWL) disclosed updates to its executive compensation program, including the structure of its 2025 Long-Term Incentive Plan (LTIP) and Bonus Program. The changes were approved on February 17, 2025, by the company’s Compensation and Human Capital Committee. The company’s stock has shown strong momentum, delivering a 16% return over the past year. According to InvestingPro, which provides comprehensive analysis of 1,400+ US stocks, Newell Brands has demonstrated positive price momentum with a 7% gain year-to-date.
The LTIP, part of the shareholder-approved 2022 Incentive Plan, involves annual awards based on the company’s common stock, split evenly between performance-based restricted stock units (PRSUs) and time-based restricted stock units (TRSUs). The PRSUs will vest after three years if performance measures are met, while the TRSUs will vest in thirds over three years, contingent on continued employment. For deeper insights into Newell Brands’ executive compensation and financial metrics, InvestingPro subscribers can access detailed Pro Research Reports that transform complex Wall Street data into actionable intelligence.
Performance goals for PRSUs include Free Cash Flow Productivity and Annual Adjusted Earnings Per Share, with potential vesting ranging from 0% to 200%. The exact terms of the LTIP are detailed in an attached exhibit to the filing.
The 2025 Bonus Program, also approved on February 17, ties executive bonuses to corporate performance indicators such as adjusted operating cash flow and earnings per share. For executives Christopher Peterson, Mark Erceg, and Bradford Turner, bonuses are fully based on corporate metrics. Meanwhile, Kristine K. Malkoski and Michael P. McDermott will have 30% of their bonuses tied to corporate metrics and 70% to business segment performance.
Bonuses under the 2025 Bonus Program can range from 0% to 200% of the target payout, which is a percentage of the executive’s base salary, varying among the named officers. To be eligible for the bonus, executives must remain employed through the payment date.
This information, based on a press release statement, outlines Newell Brands’ approach to aligning executive compensation with company performance, aiming to incentivize and retain key leadership through structured, performance-based rewards. The company’s stock has maintained strong momentum, trading near its 52-week high of $13,221.60, reflecting positive market sentiment. Get access to more exclusive insights and detailed financial analysis with InvestingPro, featuring comprehensive research reports and real-time market data.
In other recent news, Newell Rubbermaid’s fourth-quarter 2024 earnings exceeded expectations, although their initial 2025 guidance for sales was slightly lower than anticipated. This mixed outcome led Truist Securities to maintain a Buy rating with a $17 price target, viewing the sharp 26% decline in stock price as an opportunity for investors. Meanwhile, UBS adjusted its price target to $8, maintaining a Neutral stance, citing strong gross margins but weaker core sales and operating profit margins. Canaccord Genuity also reduced its price target to $14 but reaffirmed a Buy rating, interpreting the market’s reaction as an overreaction and highlighting Newell’s domestic manufacturing strength.
Citi analysts lowered their price target to $7.75 while keeping a Neutral rating, noting concerns over Newell’s revenue forecasts amid tariff uncertainties. Despite the challenges, Canaccord Genuity, in a separate report, raised its price target to $15, maintaining a Buy rating, driven by optimism about the company’s strategic turnaround under CEO Chris Peterson. The firm cited improvements in gross margin and sales as indicators of progress. These recent developments reflect varied analyst perspectives on Newell Rubbermaid, with some seeing potential for a turnaround and others adopting a more cautious approach due to external uncertainties.
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