In a regulatory filing Friday, Chipotle (CMG) stated, “In light of the challenges we faced during 2H15 and the resulting decline in the price of our common stock, in February 2016 the compensation committee of the board awarded performance shares to our executive officers that will be tied solely to highly challenging absolute stock price performance goals over a three-year performance period.”
“The awards will pay out only if the average closing price of Chipotle’s common stock for any period of 30 consecutive trading days during the performance term is at least $700, which is approximately 52% higher than the closing price of Chipotle’s common stock on the grant date. ”
In the same filing, Neil Flanzraich, lead director and chair of the compensation committee, revealed that Chipotle’s executive officers were not paid any cash bonuses for 2015, remarking that compensation programs “should reward success when the management team’s efforts build shareholder value, and limit compensation when shareholder value declines and/or goals are not achieved.”
