Bath & Body Works Grants CEO $10M Performance Stock Unit Award

What Happened Bath & Body Works, Inc. filed an 8-K on September 23, 2026 reporting that on September 21, 2026 its Human Capital and Compensation Committee granted CEO Daniel Heaf a performance stock unit (PSU) award with a $10 million target value (equal to 591,366 shares). The award vests based on four-year stock-price performance triggers and generally vests on the fourth anniversary of the grant, subject to continued employment or qualifying termination.

Key Details

• Grant date: September 21, 2026; 8-K filed September 23, 2026 (Item 5.02).
• Target value: $10 million, equal to 591,366 shares of common stock.
• Performance hurdles: if the 60-day average stock price during the four-year period reaches $40, $60, $80 or $100, then 75%, 100%, 150% or 200% of target PSUs, respectively, are earned.
• Adjustment: earned PSUs will generally be reduced by 50% if the company’s total shareholder return vs. the S&P 1500 Consumer Discretionary Distribution & Retail Index is below the 55th percentile at the end of the performance period.

Why It Matters This award ties a significant portion of CEO compensation to multi-year stock-price and relative total-return performance, aligning management incentives with long-term shareholder value. Investors should note the size of the target grant ($10M) and the relatively demanding stock-price hurdles, which require sustained share-price improvement or strong relative TSR to fully realize the award.