{
  "docId": "019dd923-622c-750b-8b98-ef240a9cc70a",
  "docSlug": "c3be1f268cc3",
  "documentTitle": "Prestige Consumer Healthcare Inc. (PBH)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-06-30 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 114,
  "pageCount": 122,
  "prevPage": 113,
  "nextPage": 115,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 4,
  "notes": "Highlights how proxy statement changes incentivize revenue growth over margin growth.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "data_table",
    "screenshot",
    "callout_box",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-ef240a9cc70a/114",
  "deckHref": "/decks/019dd923-622c-750b-8b98-ef240a9cc70a",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-ef240a9cc70a.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-ef240a9cc70a#slide-114",
  "components": [
    {
      "bbox": {
        "h": 0.12,
        "w": 0.35,
        "x": 0.54,
        "y": 0.004900000000000001
      },
      "kind": "callout",
      "text": "In 2019, AIP target weighting was changed to favor “Total Revenues” and rewards lower margin growth",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "39ec4b43-6697-4780-8e11-1114812dd662",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.15,
        "x": 0.0068,
        "y": 0.006900000000000001
      },
      "kind": "callout",
      "text": "Cumulative sales does not exclude the impact of acquisitions",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8cf8f4ec-0d7e-4f78-93a0-2d95147999fd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "In 2019, AIP target weighting was changed to favor \"Total Revenues\" and rewards lower margin growth",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-2b63-72e1-b613-04048f36c415",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "AIP net sales weighting: 50%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-2b63-72e1-b613-0856aab3c301",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.085,
        "w": 0.964,
        "x": 0.018,
        "y": 0.00185
      },
      "kind": "paragraph",
      "text": "We find additional red flags in PBH’s executive compensation when analyzing the Company’s proxy statements. For 2019 annual cash incentive compensation, the weighting was changed to favor sales and deprioritize margin growth. For PBH’s performance stock units (PSU), the proxy states it is based on “cumulative” adjusted EBITDA and sales. This cumulative metric gives management the benefit of inorganic growth.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "35bd7880-45c1-4fbc-89ae-1ad6cc6372a9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.2,
        "x": 0.018,
        "y": 0.97
      },
      "kind": "source-note",
      "text": "Source: Company proxy statements",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "417f39a3-46ce-4959-91bf-869e6afcf8c2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.3,
        "w": 0.67,
        "x": 0.176,
        "y": 0.0068
      },
      "kind": "table",
      "text": "2020 Proxy Statement Vesting Criteria for Equity Awards",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "29fa6e91-4e9d-4702-92fb-5a279d34588b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.824,
        "x": 0.176,
        "y": 0.0032
      },
      "kind": "table",
      "text": "2018 Proxy Statement metrics and 2019 Proxy Statement metrics comparison",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ade24f6d-ab24-4a54-be27-530187ccf4b8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.038,
        "w": 0.388,
        "x": 0.306,
        "y": 0.055
      },
      "kind": "title",
      "text": "Incentivizing Inorganic Growth",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f9039111-fe81-4e97-ac21-f4cc705af904",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "eabc7932-c65e-43cd-9dfd-6a77a9d25c97",
      "evidence": "Identifies red flags in executive compensation structure to suggest management misalignment.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 122,
      "from": 11,
      "beatId": "fc4ac38d-48bf-454d-9d50-344d1705ba33",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The majority of the document is dedicated to exposing contradictions and concerns in Prestige Brands' financials, operations, and governance.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    },
    {
      "to": 122,
      "from": 10,
      "beatId": "91479d45-6cb5-49fc-9f03-ea82d8e93c6b",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Evidence",
      "beatSlug": "evidence",
      "evidence": "The document provides extensive evidence to support its claims, including financial data, comparisons to peers, and testimonials.",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}