Company: PENG
Filing Date: 2025-12-19
Form Type: DEF 14A
Source: 0001616533-25-000073
Chunk: 71

Company: Penguin Solutions, Inc.
Filing Date: 2025-12-19
Form: DEF 14A
Chunk 71
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 Compensation Committee certified the achievement of the performance goal applicable to the Fiscal 2023 PSUs at 37.51% above the TSR of the median company in the Fiscal 2023 Index Group over the Fiscal 2023 Performance Period, corresponding to a vesting percentage of 200.00% of target Fiscal 2023 PSUs eligible to vest.

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Other Elements of Our Fiscal 2025 Executive Compensation Program

Employment and Severance Arrangements

We generally execute an offer of employment before an executive joins our Company. This offer describes the basic terms of the executive’s employment, including their initial base salary, target cash incentives, equity compensation opportunities, and severance benefits. The terms of the offer letter are set after considering compensation levels paid to similarly situated Penguin Solutions executive officers, competitive market data on external practices at peer companies, input from the Compensation Committee’s independent Compensation Consultant, and the amount of compensation deemed necessary to induce the executive to join us. The offer letters also provide for severance and other benefits in the event of certain qualifying terminations of employment and in connection with a Company change in control (as defined in the executive offer letters). The Compensation Committee believes that these severance benefits help secure the continued employment and dedication of our NEOs and are important as a recruitment and retention device, particularly given that many of the companies with which we compete for executive talent have similar agreements in place for their senior management. For additional information about these arrangements with each of the NEOs, refer to “ Employment and Severance Agreements; Potential Payments upon Termination or Change in Control ” below.

Frey Offer Letter . Effective July 29, 2025, we entered into an amended and restated offer letter with Mr. Frey for his service as Senior Vice President and Chief Revenue Officer, which amended and restated his original offer letter dated July 2, 2025 to reflect a revised reporting structure. The terms of Mr. Frey’s amended and restated offer letter were determined based on a review by the Compensation Committee of competitive market data on compensation levels at peer companies, input from the Compensation Consultant, and the amount of compensation deemed necessary to induce Mr. Frey to join the Company, and provide for the following:

• An annualized base salary of $425,000 per year;

• A sign-on bonus of $50,000, which is subject to repayment if his employment is terminated by us for “cause” or if he resigns without “good reason”