Compensation Committee Charter

Purpose of Committee

The purpose of the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of Brinker International, Inc. (the “Company”) is to: 1) oversee the administration of the Company’s compensation programs; 2) review the compensation of the executive officers; 3) administer the Stock Option/Incentive Based Plans; 4) review CEO performance; 5) review and approve key executive promotions; and 6) prepare any report on executive compensation required by the rules and regulations of the Securities and Exchange Commission (the “SEC”).

Committee Membership

The Committee shall consist solely of three or more members of the Board each of whom the Board has determined has no material relationship with the Company and each of whom is otherwise “independent” under the rules of the New York Stock Exchange, Inc.

Members shall be appointed by the Board based on nominations recommended by the Company’s Nominating Committee, and shall serve at the pleasure of the Board and for such term or terms as the Board may determine.

Committee Structure and Operations

The Board shall designate one member of the Committee as its chairperson and one as its vice-chair. The Committee shall meet in person or telephonically at least two times a year at a time and place determined by the Committee chairperson, with further meetings to occur, or actions to be taken by unanimous written consent, when deemed necessary or desirable by the Committee or its chairperson.

The Committee may invite such members of management to its meetings, as it may deem desirable or appropriate, consistent with the maintenance of the confidentiality of compensation discussions. The Company’s Chief Executive Officer (“CEO”) should not attend any portion of a meeting where the CEO’s performance or compensation are discussed, unless specifically invited by the Committee.

Committee Duties and Responsibilities

The following are the duties and responsibilities of the Committee.


In consultation with senior management, establish the Company’s general compensation philosophy, and oversee the development and implementation of compensation programs.


Review and approve corporate goals and objectives relevant to the compensation of the CEO, evaluate the performance of the CEO in light of those goals and objectives, and either as a committee or together with the other independent directors (as directed by the Board), determine and approve the CEO’s compensation level based on this evaluation. In determining the long-term incentive component of CEO compensation, the Committee shall consider, among other factors, the Company’s performance and relative shareholder return, the value of similar incentive awards to chief executive officers at comparable companies and the awards given to the CEO in past years.


The Committee will meet at least annually to review officer compensation. The Committee shall retain the services of an independent expert, who will provide the Committee with competitive data for the various officer positions, and shall provide advice and counsel to the Committee in setting salaries and total compensation. The Committee shall expressly determine the compensation for the Chairman of the Board (if a management Director), Chief Executive Officer (“CEO”), and based on the advice of the CEO, for President, and all Executive Vice Presidents, and Senior Vice Presidents. The compensation of all officers at the Senior Vice President level and above shall be subject to approval by the Board. The CEO shall, at his discretion, have the authority to alter compensation for officers below the level of Senior Vice President without Committee approval, provided the revised compensation does not exceed the competitive market place analysis provided to the Committee by the independent expert. New officer hires, and the compensation for such officer(s), other than the President, Chief Operating Officer (“COO”), Chief Financial Officer (“CFO”), Chief Administrative Officer (“CAO”) and General Counsel (“GC”), may be made without Committee approval, provided their compensation is within competitive guidelines, and the Chair is promptly notified. The Committee shall be responsible for approving new compensation plans or other material perquisites benefiting officers or senior officers.


The Committee shall be the Plan Administrator for all Stock Options or other Incentive Based Plans. The Committee shall administer the Plan(s) in accordance with terms and conditions of such Plans. The Committee shall, annually, based on advice from third-party experts, establish guidelines for the future issuance of options under the then current employee Stock Option Plans. The full Board shall approve the guidelines as recommended by the Committee. Management shall make recommendations to the Committee as to proposed individual grants. The Committee shall, from time to time, grant options, restricted stock or other compensation pursuant to the Plans and the guidelines established. It is anticipated that options will be granted once each fiscal year, but not within six months of the previous grant. It is also anticipated that restricted stock will be granted once each fiscal year, but not within six months of the previous grant. The Committee shall specifically approve the individual grants to Senior Vice Presidents, Executive Vice Presidents, the President and the Chief Executive Officer provided, however, that if an individual is promoted or newly employed, the Compensation Committee or CEO may approve grants without full Board approval to such individual provided they are at the lower end of the guidelines for such position as previously approved by the Board. The options shall be delivered promptly after the Board has approved the actions of the Committee.


In consultation with senior management, oversee regulatory compliance with respect to compensation matters, including overseeing the Company’s policies on structuring compensation programs to preserve tax deductibility, and, as and when required, establishing performance goals and certifying that performance goals have been attained for purposes of Section 162(m) of the Internal Revenue Code.


The Committee shall meet to consider and approve any promotions or new hires at the level of CEO, COO, CFO, CAO and GC. The full Board shall meet to consider and approve any promotion or new hires of President or Chief Executive Officer. The Chief Executive Officer may promote or hire new officers below the level of President, COO, CFO, CAO and GC, but shall promptly advise the Chair of the Committee of any such promotions or new hires.


Prepare and issue the evaluations and reports required under “Committee Reports” below.


Any other duties or responsibilities expressly delegated to the Committee by the Board from time to time relating to the Company’s compensation programs.

Delegation to Subcommittee

The Committee may, in its discretion, delegate all or a portion of its duties and responsibilities to a subcommittee of the Committee, comprised entirely of “independent” members of the Board. In particular, the Committee may delegate the approval of certain transactions to a subcommittee consisting solely of members of the Committee who are (i) “Non-Employee Directors” for the purposes of Rule 16b-3 under the Securities Exchange Act of 1934, as in effect from time to time, and (ii) “outside directors” for the purposes of Section 162(m) of the Internal Revenue Code, as in effect from time to time. Any such subcommittee shall have a written and published charter to govern its activities.

Committee Reports

The Committee shall produce the following reports and provide them to the Board.


An annual Report of the Compensation Committee on Executive Compensation for inclusion in the Company’s annual proxy statement in accordance with applicable SEC rules and regulations.


An annual performance evaluation of the Committee, which evaluation must compare the performance of the Committee with the requirements of this charter and set forth the goals and objectives of the Committee for the upcoming year. The performance evaluation should also recommend to the Board any improvements to this charter deemed necessary or desirable by the Committee. The performance evaluation by the Committee shall be conducted in such manner, as the Committee deems appropriate. The report to the Board may take the form of an oral report by the chairperson of the Committee or any other member of the Committee designated by the Committee to make this report.


A summary of the actions taken at each Committee meeting, which shall be presented to the Board at the next Board meeting.

Resources and Authority of the Committee

The Committee shall have the resources and authority appropriate to discharge its duties and responsibilities, including the authority to select, retain, terminate and approve the fees and other retention terms of special counsel and other experts or consultants as it deems appropriate, without seeking approval of the Board or management with respect to compensation consultants retained to assist in the evaluation of director, CEO or senior executive compensation, this authority shall be vested solely in the Committee.