Company: EVLVW
Filing Date: 2025-04-30
Form Type: DEF 14A
Source: 0001628280-25-021091
Chunk: 36

Company: Evolv Technologies Holdings, Inc.
Filing Date: 2025-04-30
Form: DEF 14A
Chunk 36
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 are pleased to report that some of these initiatives have already been implemented. We encourage you to review the CD&A for more comprehensive details about these commitments.

#### Key 2024 Compensation Decisions
• Annual Incentive Payouts: The Company’s performance against the 2024 short-term cash incentive program was mixed. While threshold or greater level funding is achieved for two key metrics – gross margin and customer net promoter score – the targets established for incremental annual recurring revenue, cash, system deployments, and employee net promoter score were not met. Considering this performance, the Compensation Committee determined that our NEOs’ annual incentive payments for 2024 were earned at 40% of target.

• New CEO Pay Package: In connection with Mr. Kedzierski’s appointment as CEO, in December 2024, we entered into an offer letter with Mr. Kedzierski, which documents, among other things, his compensation and employment terms, which included, among other things, performance shares in the form of market-based stock units ("MSUs") to incentivize him to achieve meaningful stock price growth over the next three years, and aligning his interests more closely with those of our stockholders.

Our Response to the 2024 Say-on-Pay Vote and Commitment to Governance Best Practices

Following the 2024 Say-on-Pay advisory vote, we engaged in extensive discussions with major stockholders and reviewed feedback from leading proxy advisory firms. Key executive compensation concerns identified included granting performance-based equity awards, disclosure around and refining our short-term incentive plan structure, and transparency regarding our peer group selection methodology. In response, we have undertaken the following enhancements:

• Performance Based Awards: We have structured a significant portion of executive equity compensation to be performance-based. With the appointment of our new President and CEO in December 2024, 50% of his equity awards are MSUs which are contingent on meeting ambitious stock price targets. We incorporated MSUs into our 2025 executive compensation program to emphasize long-term performance-driven incentives.

• Enhanced Incentive Plan Disclosure and Design : With this 2025 Proxy Statement, we provided expanded disclosures detailing the design and structure of our 2024 short-term incentive plan, including specific performance targets and achievement levels. We also refined certain performance metrics based on investor feedback.

• Peer Group. We have disclosed all the companies that comprised our peer group for 2024, as well as modifications to the group for 2025, which we believe demonstrates the appropriateness of our peer group.