Mattel, Inc. · NASDAQ:MAT
Mattel — Shareholder Meeting (May 2018)
16 slides from Mattel's shareholder meeting presentation, May 8, 2018
Slide 1: Business, Governance & Compensation Update Spring 2018
Mattel, Inc. Business, Governance & Compensation Update Spring 2018 ©2018 Mattel, Inc. All Rights Reserved.
Slide 2: Forward-Looking Statements
Mattel is including this Cautionary Statement pursuant to the Private Securities Litigation Reform Act of 1995 (the “Act”). Certain statements made in this presentation may include forward-looking statements within the meaning of the Act relating to the future performance (including, without limitat
Slide 3: Business Overview
Mattel faced significant top-line and bottom-line pressures in 2017 driven by tighter retail inventory management, the Toys “R” Us bankruptcy, historical planning misalignments, and mixed brand performance Profitability was negatively impacted by the proliferation of stock keeping units (SKUs) and b
Slide 4: Five-Pillar Strategy
Five-Pillar Strategy ©2018 Mattel, Inc. All Rights Reserved. In June 2017, Mattel laid out a five-pillar strategy to create value for our stockholders; our team has made strong initial progress, with significant room for growth 4 Reshape operations Reignite culture and team Strengthen our innovation
Slide 5: Implementing Improvements to Gross Margin, SG&A and Advertising
Sources: Mattel 2018 Toy Fair Analyst Meeting; Mattel Q4 2017 Earnings; Mattel Q1 2018 Earnings *Note: LTM Sales charts are not to scale ©2018 Mattel, Inc. All Rights Reserved. Streamline number of product lines and improve approach to demand planning Reduce costs via decreased tooling and logistics
Slide 6: Transformed Leadership to Drive Growth
Sources: Mattel 2018 Proxy Statement; October 3, 2017 and April 19, 2018 Press Releases *Effective upon Mr. Kreiz’s election to the Board at Mattel’s 2018 Annual Meeting of Stockholders Transformed Leadership to Drive Growth Our leadership team brings deep industry expertise and is well-positioned t
Slide 7: Strong Independent Board Leadership
Mattel Service Joined Mattel Board in 2004 Served as Independent Lead Director since early 2015 Chair of the Compensation and Executive Committees Source: Mattel 2018 Proxy Statement Strong Independent Board Leadership Mattel has a robust Independent Lead Director role to provide independent, consis
Slide 8: New Independent Director Nominees and Board Skills
©2018 Mattel, Inc. All Rights Reserved. Source: Mattel 2018 Proxy Statement; May 4, 2018 Mattel Form DEFA14A 1 Includes two new independent director nominees at the 2018 Annual Meeting Soren Laursen Former CEO of Mozido, LLC, a global provider of digital commerce and payment solutions Also held seni
Slide 9: Corporate Governance Practices
©2018 Mattel, Inc. All Rights Reserved. Mattel utilizes strong corporate governance practices to provide our stockholders with meaningful rights and enhance Board effectiveness Board Practices Routine review of Board leadership structure Annual Board and Committee evaluations Robust director success
Slide 10: Executive Compensation Program Overview
©2018 Mattel, Inc. All Rights Reserved. A significant percentage of executive compensation is performance-based and at risk, promoting strong alignment with our stockholders’ interests Source: Mattel 2018 Proxy Statement Executive Compensation Program Overview ELEMENT OBJECTIVE Base Salary Provide f
Slide 11: Recent Payouts Reflect Challenging Performance
©2018 Mattel, Inc. All Rights Reserved. 2017 pay outcomes, as well as those in 2014-2016, demonstrate the performance-based nature of our incentive programs and reflect recent challenging financial performance Source: Mattel 2018 Proxy Statement Recent Payouts Reflect Challenging Performance CLOSE L
Slide 12: Target Total Direct Compensation is Long-term Focused
Target Total Direct Compensation is Long-term Focused $1.5MM Base Salary $2.25MM Target Annual Cash Incentive No guaranteed bonus $8.25MM Equity Long-Term Incentives Comprised of 1/3 Performance Units, Stock Options, and RSUs, respectively To promote long-term value creation, Performance Units will
Slide 13: Compensation Decisions in Connection with 2017 Leadership Transition
©2018 Mattel, Inc. All Rights Reserved. The Board took action in 2017 to hire critical expertise and retain important institutional knowledge Source: Mattel 2018 Proxy Statement 1CEO 2017 Realized Pay reflects 2017 actual annual cash (base salary and cash bonus paid) as well as the realized value of
Slide 14: Aligning our Incentive Programs to the Transformation
©2018 Mattel, Inc. All Rights Reserved. Changes to incentive programs in 2017-2018 enhance engagement of our broader team during a critical period for Mattel and tightly link compensation with execution of our go-forward strategy Source: Mattel 2018 Proxy Statement Aligning our Incentive Programs to
Slide 15: Stockholder Approval for Equity and Long-Term Compensation Plan Amendment
©2018 Mattel, Inc. All Rights Reserved. In March 2018, the Board adopted an amendment to the Amended and Restated 2010 Equity and Long-Term Compensation Plan – subject to stockholder approval Source: Mattel 2018 Proxy Statement Stockholder Approval for First Amendment to Amended and Restated 2010 Eq
Slide 16: Board Voting Recommendations
FOR the election of director nominees In response to challenging performance and substantial market headwinds, the Board took significant action to reposition Mattel for future revenue improvement and profit growth FOR ratification of PricewaterhouseCoopers LLP as Mattel’s independent registered pub