DARDEN RESTAURANTS INC, DEF 14A filed on 8/7/2023
Proxy Statement (definitive)
v3.23.2
Cover
 12 Months Ended
May 28, 2023
Document Information [Line Items]  
Document Type DEF 14A
Amendment Flag false
Entity Information [Line Items]  
Entity Registrant Name DARDEN RESTAURANTS, INC.
Entity Central Index Key 0000940944
v3.23.2
Pay vs Performance Disclosure - USD ($)
 12 Months Ended
May 28, 2023
May 29, 2022
May 30, 2021
Pay vs Performance Disclosure      
Pay vs Performance Disclosure, Table
Pay Versus Performance Disclosure
This
disclosure has been prepared in accordance with the SEC’s pay versus performance rules in Item 402(v) of Regulation
S-K
under the 1934 Act (“Item 402(v)”) and does not necessarily reflect value actually realized by the Named Executive Officers or how the Compensation Committee evaluates compensation decisions in light of Company or individual performance. For discussion of how the Compensation Committee seeks to align pay
with
performance when making compensation decisions, please review the Compensation Discussion and Analysis beginning on page
52.
The following tables and related disclosures provide information about (i) the total compensation (“SCT Total”) of our principal executive officer (“PEO”) and our
non-PEO
Named Executive Officers (collectively, the “Other NEOs”) as presented in the Summary Compensation Table on page
66
, (ii) the “compensation actually paid” (“CAP”) to our PEO and our Other NEOs, as calculated pursuant to Item 402(v), (iii) certain financial performance measures, and (iv) the relationship of the CAP to those financial performance measures for fiscal years 2021, 2022 and 2023:

 
 
 
 
 
 
 
 
Year(1)
Summary
Compensation
Table Total for
PEO(2)
Compensation
Actually Paid to
PEO(3)
Average
Summary
Compensation
Table Total for
Non-PEO

NEO(4)
Average
Compensation
Actually Paid to
Non-PEO

NEO(5)
Value of Initial Fixed $100
Investment Based on:
Net Income
(millions)(7)
Adjusted
Darden Diluted
Net EPS(8)
Total
Shareholder
Return
($)
Peer
Group
(6)

Total
Shareholder
Return
($)
 
 
 
 
 
 
 
 
 
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
                 
2023
       8,500,029         15,246,533         3,205,321         5,905,006         226.97         122.21         981.9         8.00  
                 
2022
       11,891,841         8,852,886         3,517,201         2,886,390         171.15         123.74         952.8         7.40  
                 
2021
       10,128,186         34,914,894         2,627,292         5,808,702         188.58         139.04         629.3         4.31  
 
(1)
“Year” means the fiscal year.
 
(2)
PEO means:
 
   
Fiscal 2023
  
Ricardo Cardenas
   
Fiscal 2022
  
Eugene I. Lee, Jr.
   
Fiscal 2021
  
Eugene I. Lee, Jr.
 
(3)
Adjustments to Calculate Compensation Actually Paid to PEO (Column (c))
 
       
Items Adjusted
  
2023
  
2022
  
2021
       
Reported Summary Compensation Table
       8,500,029         11,891,841         10,128,186  
       
Reported Value Equity Awards
       (5,562,526 )       (5,982,682 )       (5,496,847 )
       
Year-End
Fair Value of Outstanding Equity Awards Granted in Year
       9,961,422         5,163,812         13,430,669  
       
Year Over Year Change in Fair Value of Outstanding Unvested Equity Granted in Prior Years
       2,219,441         (2,838,468 )       15,438,828  
       
Year Over Year Change in Fair Value of Equity Granted in Prior Years and Vested in Year
       (181,368 )       (167,098 )       979,895  
       
Value of Dividends Paid on Unvested Equity
       309,535         785,481         434,163  
       
Total Equity Award Adjustments
       15,246,533         8,852,886         34,914,894  
 
(4)
Non-PEO
NEOs include:
 
   
Fiscal 2023
  
Todd A. Burrowes, Daniel J. Kiernan, M. John Martin, Rajesh Vennam
   
Fiscal 2022
  
Todd A. Burrowes, Ricardo Cardenas, M. John Martin, Rajesh Vennam
   
Fiscal 2021
  
Todd A. Burrowes, Ricardo Cardenas, David C. George, Daniel J. Kiernan, M. John Martin, Rajesh Vennam
 
(5)
Adjustments to Calculate Average Compensation Actually Paid to Other NEOs (Column (e))
 
       
Items Adjusted
  
2023
  
2022
  
2021
       
Reported Summary Compensation Table
       3,205,321         3,517,201         2,627,292  
       
Reported Value Equity Awards
       (1,668,767 )       (1,577,189 )       (1,075,089 )
       
Year-End
Fair Value of Outstanding Equity Awards Granted in Year
       2,988,436         1,361,314         2,155,749  
       
Year Over Year Change in Fair Value of Outstanding Unvested Equity Granted in Prior Years
       1,307,395         (550,759 )       1,897,626  
       
Year Over Year Change in Fair Value of Equity Granted in Prior Years and Vested in Year
       (87,150 )       (29,572 )       126,493  
       
Value of Dividends Paid on Unvested Equity
       159,771         165,395         76,631  
       
Total Equity Award Adjustments
       5,905,006         2,886,390         5,808,702  
 
(6)
Represents the cumulative TSR of the S&P Consumer Discretionary Select Sector Index.
 
(7)
The dollar amount represents the amount of net income reported in the Company’s audited financial statements for the applicable fiscal year.
 
(8)
Adjusted Darden Diluted Net EPS was selected as the Company-Selected Measure. A detailed Adjusted EPS reconciliation can be found in our Compensation Discussion and Analysis of the Company’s Proxy Statement for the applicable fiscal year, each as filed with the SEC on August 9, 2021, August 8, 2022 and August 7, 2023, respectively.
   
Company Selected Measure Name Adjusted Darden Diluted Net EPS    
Named Executive Officers, Footnote
(4)
Non-PEO
NEOs include:
 
   
Fiscal 2023
  
Todd A. Burrowes, Daniel J. Kiernan, M. John Martin, Rajesh Vennam
   
Fiscal 2022
  
Todd A. Burrowes, Ricardo Cardenas, M. John Martin, Rajesh Vennam
   
Fiscal 2021
  
Todd A. Burrowes, Ricardo Cardenas, David C. George, Daniel J. Kiernan, M. John Martin, Rajesh Vennam
   
Peer Group Issuers, Footnote
(6)
Represents the cumulative TSR of the S&P Consumer Discretionary Select Sector Index.
   
PEO Total Compensation Amount $ 8,500,029 $ 11,891,841 $ 10,128,186
PEO Actually Paid Compensation Amount $ 15,246,533 8,852,886 34,914,894
Adjustment To PEO Compensation, Footnote
(3)
Adjustments to Calculate Compensation Actually Paid to PEO (Column (c))
 
       
Items Adjusted
  
2023
  
2022
  
2021
       
Reported Summary Compensation Table
       8,500,029         11,891,841         10,128,186  
       
Reported Value Equity Awards
       (5,562,526 )       (5,982,682 )       (5,496,847 )
       
Year-End
Fair Value of Outstanding Equity Awards Granted in Year
       9,961,422         5,163,812         13,430,669  
       
Year Over Year Change in Fair Value of Outstanding Unvested Equity Granted in Prior Years
       2,219,441         (2,838,468 )       15,438,828  
       
Year Over Year Change in Fair Value of Equity Granted in Prior Years and Vested in Year
       (181,368 )       (167,098 )       979,895  
       
Value of Dividends Paid on Unvested Equity
       309,535         785,481         434,163  
       
Total Equity Award Adjustments
       15,246,533         8,852,886         34,914,894  
   
Non-PEO NEO Average Total Compensation Amount $ 3,205,321 3,517,201 2,627,292
Non-PEO NEO Average Compensation Actually Paid Amount $ 5,905,006 2,886,390 5,808,702
Adjustment to Non-PEO NEO Compensation Footnote
(5)
Adjustments to Calculate Average Compensation Actually Paid to Other NEOs (Column (e))
 
       
Items Adjusted
  
2023
  
2022
  
2021
       
Reported Summary Compensation Table
       3,205,321         3,517,201         2,627,292  
       
Reported Value Equity Awards
       (1,668,767 )       (1,577,189 )       (1,075,089 )
       
Year-End
Fair Value of Outstanding Equity Awards Granted in Year
       2,988,436         1,361,314         2,155,749  
       
Year Over Year Change in Fair Value of Outstanding Unvested Equity Granted in Prior Years
       1,307,395         (550,759 )       1,897,626  
       
Year Over Year Change in Fair Value of Equity Granted in Prior Years and Vested in Year
       (87,150 )       (29,572 )       126,493  
       
Value of Dividends Paid on Unvested Equity
       159,771         165,395         76,631  
       
Total Equity Award Adjustments
       5,905,006         2,886,390         5,808,702  
   
Compensation Actually Paid vs. Total Shareholder Return
Compensation Actually Paid and Cumulative TSR
The table below shows the relationship between the amount of compensation actually paid to the PEO and the average amount of compensation actually paid to the Company’s NEOs as a group and the Company’s Total Shareholder Return and Total Shareholder Return of our peer group, the S&P Consumer Discretionary Select Sector Index. Neither the Company’s Total Shareholder Return nor the peer group Total Shareholder Return are performance metrics in the Company’s incentive plans. The Company’s Total Shareholder return as a percentile rank versus the Total Shareholder Return of the constituents of a different peer group is a performance measure in the Company’s Performance Stock Unit Awards. Please see
Compensation Discussion and Analysis
in this Proxy Statement for a description of the Company’s Executive Compensation Philosophy and Strategy.
 
 

    
Compensation Actually Paid vs. Net Income
Compensation Actually Paid and Net Income
The table below shows the relationship between the amount of compensation actually paid to the PEO and the average amount of compensation actually paid to the Company’s NEOs as a group and the Company’s Net Income. Net Income is not a performance measure in any of the Company’s incentive plans and any alignment would be indirect. Please see
Compensation Discussion and Analysis
in this Proxy Statement for a description of the Company’s Executive Compensation Philosophy and Strategy.
 
 

    
Compensation Actually Paid vs. Company Selected Measure
Compensation Actually Paid and Adjusted Diluted Net EPS
The table below shows the relationship between the amount of compensation actually paid to the PEO and the average amount of compensation actually paid to the Company’s NEOs as a group and the Company’s Adjusted Diluted Net
EPS. Adjusted Diluted Net
EPS is the Company Selected Measure because it is a performance measure in the Company’s Annual Incentive Plan. Note, compensation actually paid to the PEO and the average amount of compensation actually paid to the Company’s NEOs as a group is impacted by changes in stock price and other performance metrics in the Company’s Incentive Plans. Please see
Compensation Discussion and Analysis
in this Proxy Statement for a description of the Company’s Executive Compensation Philosophy and Strategy.
 
 
    
Total Shareholder Return Vs Peer Group
Compensation Actually Paid and Cumulative TSR
The table below shows the relationship between the amount of compensation actually paid to the PEO and the average amount of compensation actually paid to the Company’s NEOs as a group and the Company’s Total Shareholder Return and Total Shareholder Return of our peer group, the S&P Consumer Discretionary Select Sector Index. Neither the Company’s Total Shareholder Return nor the peer group Total Shareholder Return are performance metrics in the Company’s incentive plans. The Company’s Total Shareholder return as a percentile rank versus the Total Shareholder Return of the constituents of a different peer group is a performance measure in the Company’s Performance Stock Unit Awards. Please see
Compensation Discussion and Analysis
in this Proxy Statement for a description of the Company’s Executive Compensation Philosophy and Strategy.
 
 

    
Tabular List, Table
Pay versus Performance Tabular List
The table below lists our most important performance measures used to link “Compensation Actually Paid” for our NEOs to company performance, over the fiscal year ending May 28, 2023. These measures are among the measures used to determine the annual incentive and the PSU component of long-term incentive payouts for each of the NEOs.
For more information on annual incentives and actual payouts for each NEO, see “Annual
Incentive Plan
” beginning on page
57
 of this Proxy Statement. For more information on the PSU component of the long-term incentives for each NEO, see “Long-Term Incentives” beginning on page
60
 of this Proxy Statement. The performance measures included in this table are not ranked by relative importance.
 
 
Darden Adjusted Diluted Net EPS
Darden Same-Restaurant Sales Growth
Relative Total Shareholder Return
   
Total Shareholder Return Amount $ 226.97 171.15 188.58
Peer Group Total Shareholder Return Amount 122.21 123.74 139.04
Net Income (Loss) $ 981,900,000 $ 952,800,000 $ 629,300,000
Company Selected Measure Amount 8 7.4 4.31
PEO Name Ricardo Cardenas Eugene I. Lee, Jr. Eugene I. Lee, Jr.
Measure:: 1      
Pay vs Performance Disclosure      
Name Darden Adjusted Diluted Net EPS    
Measure:: 2      
Pay vs Performance Disclosure      
Name Darden Same-Restaurant Sales Growth    
Measure:: 3      
Pay vs Performance Disclosure      
Name Relative Total Shareholder Return    
PEO | Reported Value Equity Awards [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount $ (5,562,526) $ (5,982,682) $ (5,496,847)
PEO | YearEnd Fair Value of Outstanding Equity Awards Granted in Year [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount 9,961,422 5,163,812 13,430,669
PEO | Year Over Year Change in Fair Value of Outstanding Unvested Equity Granted in Prior Years [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount 2,219,441 (2,838,468) 15,438,828
PEO | Year Over Year Change in Fair Value of Equity Granted in Prior Years and Vested in Year [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount (181,368) (167,098) 979,895
PEO | Value of Dividends Paid on Unvested Equity [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount 309,535 785,481 434,163
PEO | Total Equity Award Adjustments [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount 15,246,533 8,852,886 34,914,894
Non-PEO NEO | Reported Value Equity Awards [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount (1,668,767) (1,577,189) (1,075,089)
Non-PEO NEO | YearEnd Fair Value of Outstanding Equity Awards Granted in Year [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount 2,988,436 1,361,314 2,155,749
Non-PEO NEO | Year Over Year Change in Fair Value of Outstanding Unvested Equity Granted in Prior Years [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount 1,307,395 (550,759) 1,897,626
Non-PEO NEO | Year Over Year Change in Fair Value of Equity Granted in Prior Years and Vested in Year [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount (87,150) (29,572) 126,493
Non-PEO NEO | Value of Dividends Paid on Unvested Equity [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount 159,771 165,395 76,631
Non-PEO NEO | Total Equity Award Adjustments [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount $ 5,905,006 $ 2,886,390 $ 5,808,702