Federal Signal Investor Presentation Deck
Appendix VI: Executive Compensation Aligned with Long-term Objectives
The Company continues to focus on executing against a number of key long-term objectives, which include (i) creating disciplined growth, (ii) improving
manufacturing efficiencies and costs; (iii) leveraging invested capital; and (iv) diversifying our customer base
One Year
Three Years
Cash Bonus (STIP)
Earnings (60%)
EBITDA Margin (20%)
Individual Objectives (20%)
ā
ā
Performance Share Units
EPS (75%)
Return on Invested Capital (25%)
Relative TSR (modifier)
Restricted Stock Awards
Share Price Appreciation
Stock Options
Ten Years
Short-Term
Annual Goals
1. Profitability and growth
2. Market share
Long-Term
3-year Performance and Vesting Periods
1. Profitability and growth
2. Shareholder value creation
3. Efficient use of capital
4. Facilitates stock ownership
5. Executive retention
6. TSR component introduced in 2022 to measure
performance vs. peers
Long-Term
3-year Cliff Vesting
1. Executive recruitment
2. Executive retention
Longer-Term
3-year Ratable Vesting Period and 10 Year Exercise Period
1. Shareholder value creation
2. Facilitates stock ownership
3. Executive retention
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