Key Highlights

  • 2026 long‑term incentive grants split 50% into time‑based RSUs and 50% into performance‑based units, with RSUs vesting 33.3% annually.
  • Relative total shareholder return weighting starts at 30% and can vary up to 200% of target, while stock price goals begin at 70% and can reach 300% for extraordinary performance.
  • Short‑term bonus composition weighs 20% individual goals against 80% financial metrics, including EPS, RONA (10% weight) and two 5% operational targets.

Incentive Plans Approved

Accel Entertainment disclosed that its Compensation Committee approved a long‑term incentive plan and a short‑term incentive program on a recent date. The board’s decision follows recent leadership changes and aligns executive compensation with strategic objectives through a mix of equity and cash components.

Long‑Term Incentive Structure

The LTI awards split the target grant value equally, with 50% placed in time‑based units and the remaining 50% in performance‑based units. Executives may elect to shift up to 100% of the grant into the performance portion, but the allocation cannot fall below 50% for the performance portion. This staggered schedule spreads ownership over the award horizon, reinforcing retention.

Relative TSR Component

The Relative Total Shareholder Return (TSR) element carries a default weighting of 30% and measures Accel’s shareholder return against the Russell 3000 Index. Payouts for this segment range from 0% at the lower bound to a maximum of 200% of the target amount, with a floor at the target level if absolute TSR turns negative over the performance period.

Stock Price Goal Component

Stock Price Goals receive a default weighting of 70% and are tied to achieving predefined price thresholds over the performance span. Executives can increase the weighting of this component up to 100%, but it cannot be reduced below 70%. Payouts start at 50% of the target for threshold performance and can climb to 300% for extraordinary outcomes, with no upper limit if the stock price exceeds the top threshold.

Short‑Term Incentive Mechanics

The STI program sets cash bonus potential based on a 20% share of individual performance goals and an 80% share of financial metrics. Financial criteria are weighted 80% to earnings per share, 10% to return on net assets (RONA), and 5% each to capital expenditures and IL top customer retention. RONA payouts may vary from 0% up to 200% of the target amount.

Executive Compensation Impact

By integrating both equity‑based and cash mechanisms, Accel aims to align management incentives with shareholder interests while providing flexibility to adjust performance weighting. The combined structure targets balanced risk‑adjusted returns and operational excellence across the upcoming multi‑year period.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.