Company: THRM
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001140361-25-010582
Chunk: 77

Company: Gentherm Inc
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 77
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 the financial performance measure that, in the Company’s assessment, represents the most important performance measure used by the Company to link CAP for the Company’s NEOs to Company performance for the most recently completed year that is not otherwise required to be disclosed in the pay versus performance table above. In identifying Adjusted EBITDA as the most important performance measure used by the Company to link CAP for the NEOs to performance for 2024, we considered that (1) the cash bonuses earned by our NEOs under the 2024 Senior Level Bonus Plan were based on the achievement of three financial performance metrics—Adjusted EBITDA, revenue and relative revenue growth—along with a strategic goals measurement, with Adjusted EBITDA being weighted the greatest at 40% and (2) 60-70% of the grant value of the 2024 equity awards granted to our NEOs was delivered via target PSUs, with 75% of the grant value of such target PSUs being earned based on our three-year growth of Adjusted EBITDA Margin. We may determine a different financial performance measure to be the most important financial performance measure in future years. Financial Performance Measures As described in “Compensation Discussion and Analysis,” a significant portion of the NEO pay is performance-based and at-risk, consistent with the compensation philosophy established by the Compensation and Talent Committee. Our NEO compensation program rewards the achievement of specific short-term (annual) and long-term financial and other goals, which are aligned with our operational and strategic goals. The most important financial performance measures used by the Company to link CAP for the Company’s NEOs to the Company’s performance for the most recently completed year are shown below.

| MOST IMPORTANT PERFORMANCE MEASURES |                         |
| Adjusted EBITDA                     | Relative Revenue Growth |
| Adjusted EBITDA Margin              | Relative TSR*           |
| Revenue                             |                         |

*Reflects the Company’s TSR compared to a peer group established by the Compensation and Talent Committee. Analysis Of Information Presented In The Pay Versus Performance Table The Company is providing the following graphs regarding the relationships between information presented in the Pay Versus Performance table, including CAP, as required by Item 402(v) of Regulation S-K. The Compensation and Talent Committee utilizes several performance measures to align executive compensation with Company performance, and only some of those Company measures are presented in the pay versus performance table above and the graphs below. The Compensation and Talent Committee has not used or considered CAP previously as computed in accordance with Item 402(v) of Regulation