Company: LGIH
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001580670-25-000028
Chunk: 61

Company: LGI Homes, Inc.
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 61
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 and belief in our Company and our products with little impact on our pre-tax net income.

#### Severance and Change in Control Benefits
Mr. Eric Lipar, our Chief Executive Officer and Chairman of the Board, has an employment agreement (the “Lipar Employment Agreement”) with the Company. The Lipar Employment Agreement provides for a three-year term that began November 13, 2018 and automatically renews for successive one-year periods on the anniversary of the effective date, a base salary of at least $840,588 plus a discretionary incentive bonus, and includes provisions that govern confidentiality, non-competition, and non-solicitation. See “Executive Compensation - CEO Employment Agreement” for a discussion of the Lipar Employment Agreement. Other than Mr. Lipar, the NEOs do not have any employment or severance agreements other than what is outlined in the 2013 Incentive Plan.

#### Section 162(m)
Section 162(m) of the Code limits the amount of compensation that may be deducted per covered employee to $1.0 million per taxable year. Following the enactment of the Tax Cuts and Jobs Act, beginning with the 2018 calendar year, this $1.0 million annual deduction limitation applies to compensation paid to any individual who serves as the chief executive officer, chief financial officer or one of the other three most highly compensated executive officers for 2017 or any subsequent calendar year, and there is no longer any exception to this limitation for qualified performance-based compensation (as was the case for periods prior to 2018). Thus, it is expected that any compensation deductions for any covered employee will be subject to a $1 million annual deduction limitation (other than for certain compensation that satisfies the requirements for grandfathering under the law). The Compensation Committee considers the applicability of Section 162(m) in

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designing our compensation programs but also considers numerous factors that may in some cases lead to the payment of compensation that is not deductible as result of the application of Section 162(m).

#### Stock Ownership Guidelines
Ownership of our common stock by our directors and executive officers is very important to align their interests with those of our stockholders. The Board has adopted guidelines requiring that our executive officers acquire and continuously hold a specified minimum level of our common stock. Shares owned outright and unvested RSUs are counted towards the ownership level, but unearned or unvested PSUs are not counted towards the ownership level. For our executive officers, we express these requirements