Company: HGBL
Filing Date: 2025-04-22
Form Type: DEF 14A
Source: 0000950170-25-056713
Chunk: 33

Company: Heritage Global Inc.
Filing Date: 2025-04-22
Form: DEF 14A
Chunk 33
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 |     |   |         — |   |     |   |       — |     |             |         — |   |     |   |         — |   |     |   |         — |   |
| Compensation Actually Paid                                                                                                                                                 |     | $   |  861,976 |   |     | $ | 1,275,132 |   |     | $ | 877,455 |     | $           |   955,920 |   |     | $ | 1,533,851 |   |     | $ | 1,217,941 |   |

Analysis of the Information Presented in the Pay Versus Performance Table Our Board and Compensation Committee generally seek to align the interests of stockholders with our named executive officers by incentivizing long-term performance and through the use of short-term cash incentives. Therefore, we do not specifically align our performance measures with “compensation actually paid” (as computed in accordance with Item 402(v) of Regulation S-K) for a particular year and the Compensation Committee did not consider this information in making its executive compensation decisions. Instead our executives were paid in both 2024, 2023 and 2022 based on the achievement of annual corporate goals, which are focused on driving growth in operating income and encouraging activities that support long-term performance of total stockholder return. In accordance with Item 402(v) of Regulation S-K, we are providing the following descriptions of the relationships between information presented in the Pay Versus Performance table.

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Compensation Actually Paid and Net Income The amount of compensation actually paid to our PEO and the average amount of compensation actually paid to our non-PEO NEOs decreased from 2023 to 2024. The Company's net income decreased from 2023 to 2024. The Company does not look to net income as a performance measure for its executive compensation program and instead looks at operating income to evaluate the Company’s performance. From 2023 to 2024 the Company went from having net income of $12.5 million (which included a one time adjustment to our valuation allowance against our deferred tax assets of approximately $2.2 million that increased net income) to a net income of $5.2 million (which included a one time adjustment to our valuation allowance against our deferred tax assets of approximately $1.3 million that decreased net income). Without the adjustments to deferred tax assets, the Company would have had a net income of $10.