Bath & Body Works, Inc. has granted Chief Executive Officer Daniel Heaf a performance stock unit award with a target value of $10 million, a move the company says is designed to incentivize long-term strategy execution and shareholder value creation. The Human Capital and Compensation Committee of the Board of Directors approved the award on September 21, 2026, filing an 8-K with the U.S. Securities and Exchange Commission to disclose the compensatory arrangement.
The award, equal to 591,366 shares of Bath & Body Works common stock, is tied to rigorous stock price hurdles that must be met during a four-year performance period. To earn the units, the average closing price of the company's common stock over any 60 consecutive trading days within that period must reach specific thresholds. If the price equals or exceeds $40, 75% of the target number of performance stock units will be earned. Reaching $60 secures 100% of the target, while $80 and $100 trigger payouts of 150% and 200% of the target number, respectively.
The earned units are scheduled to vest on the fourth anniversary of the grant date, provided Mr. Heaf remains employed through that date or experiences an earlier qualifying termination. However, the final number of units earned is subject to a relative performance adjustment. If Bath & Body Works' total shareholder return ranks below the 55th percentile compared to companies in the S&P 1500 Consumer Discretionary Distribution & Retail Index at the end of the four-year period, the number of otherwise earned units will be reduced by 50%.
The company's filing states that the award is intended to focus leadership on executing its long-term strategy. The specific terms are detailed in a Stock Price Hurdle Performance Stock Unit Award Agreement dated September 21, 2026, which is filed as Exhibit 10.1 to the report. Ann Aber, Chief Legal Officer of Bath & Body Works, signed the document on September 23, 2026.