Company: KRO
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001257640-25-000009
Chunk: 33

Company: KRONOS WORLDWIDE INC
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 33
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| ● | the cost to employ the personnel necessary to provide the quality of the services provided by Contran would exceed the proposed aggregate fee to be charged by Contran to us under our ISA with Contran; and |

| ● | the cost for such services would be no less favorable than could otherwise be obtained from an unrelated third party for comparable services. |

In reaching its recommendation, our management development and compensation committee did not review:

| ● | any ISA charge from Contran to any other publicly held parent or sister company, although such charge was separately reviewed by the management development and compensation committee of the applicable company; and |

| ● | the compensation policies of Contran or the amount of time our named executive officers are expected |

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| to devote to us because: |

| o | some of our named executive officers provide services to multiple companies related to Contran, including Contran itself, and the percentage of time devoted to each company by our named executive officers employed by Contran varies; |

| o | the fee we pay to Contran under our ISA with Contran each year does not represent all of Contran’s cost of employing each of our named executive officers; |

| o | Contran and these other companies related to Contran absorb the remaining amount of Contran’s cost of employing each of our named executive officers; and |

| o | the members of our management development and compensation committee consider the factors discussed above, applying their collective business judgment and experience, in determining whether to recommend that the proposed ISA fee for each year be approved by the full board of directors. |

Based on the recommendation of our management development and compensation committee, as well as the concurrence of our chief financial officer, our independent directors approved the proposed annual ISA charge effective January 1, 2024. For financial reporting and income tax purposes, the ISA fee is expensed as incurred on a quarterly basis. Section 162(m) of the Code generally disallows an income tax deduction to publicly held companies for compensation over $1.0 million paid to the company’s chief executive officer, chief financial officer and three other most highly compensated executive officers. To the extent any individual’s charge to a publicly held company under the ISA was in excess of $1.0 million, the deductibility by the company of the charge for income tax purposes would be limited under Section 162(m), if such section were to be deemed applicable as it relates to the ISA. In each of 2022, 2023 and 2024 the ISA did