The primary purposes of the Compensation Committee (the "Committee") of the Board of Hasbro, Inc. (the "Company") are to: (a) discharge the Board's responsibilities relating to compensation of the Company's executives, including to oversee the compensation policies, arrangements and plans of the Company with respect to the Chief Executive Officer and the other executive officers; (b) oversee the Company's incentive compensation and equity-based plans for employees and officers of the Company; (c) review and discuss with management the Company's Compensation Discussion and Analysis to be included in the Company's annual proxy statement and; (d) prepare the report of the Compensation Committee required to be included in the Company's annual proxy statement in accordance with applicable rules and regulations.
The Committee shall review and reassess the adequacy of this Charter on an annual basis.
The Committee shall be comprised of not less than three members of the Board, and the Committee's composition will meet the requirements of the Sarbanes-Oxley Act of 2002 (the "Act"), The NASDAQ Stock Market ("NASDAQ") and other applicable requirements.
Accordingly, in addition to any other applicable requirements, all of the members of the Committee will be directors:
Committee members shall be appointed and removed by the Board, which shall designate the Committee Chair, who shall preside over meetings of the Committee. A majority of the members of the Committee shall constitute a quorum for doing business. All actions of the Committee shall be taken by a majority vote of the members of the Committee present at the meeting, provided a quorum is present.
The Committee shall hold regularly scheduled meetings and such special meetings as circumstances dictate. To the extent the Committee believes it to be appropriate or advisable, it shall meet in executive session, without management present. Action may be taken by the Committee without a meeting if all of the members of the Committee indicate their approval thereof in writing. The Committee shall report regularly to the full Board.
In order to fulfill its role, the Committee shall have the sole authority to retain and terminate consulting firms or other experts to assist the Committee or the Board in the evaluation of compensation for the Chief Executive Officer and other senior executives, and shall have the sole authority to approve such firms' and experts' fees and other retention terms. The Committee shall also have the power, on behalf of the Company, to adopt, amend or terminate compensation plans or arrangements applicable to any class of employees, officers or directors of the Company or any subsidiary of the Company and to make grants and awards under the Company's compensation plans, subject in each case only to any applicable laws or regulations requiring Board or shareholder approval.
Each member of the Committee shall be entitled to rely on (i) the integrity of those persons and organizations within and outside the Company that it receives information from, and (ii) the accuracy of the information provided to the Committee by such persons or organizations absent actual knowledge to the contrary (which shall be promptly reported to the Board). The Committee has the authority to retain legal or other experts that it determines to be necessary to carry out its duties. It also has authority to determine compensation for such advisors.
The following functions shall be the common recurring activities of the Committee in carrying out its oversight function. These functions are set forth as a guide with the understanding that the Committee may diverge from this guide as appropriate, and as allowed by applicable legal and stock exchange requirements, given the circumstances.
The Committee shall also perform any other activities consistent with the Articles of Incorporation and By-laws of the Company, and other governing laws, as the Board or the Committee shall deem appropriate.