Company: CLSKW
Filing Date: 2025-01-22
Form Type: DEF 14A
Source: 0000950170-25-007763
Chunk: 43

Company: CLEANSPARK, INC.
Filing Date: 2025-01-22
Form: DEF 14A
Chunk 43
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 Act and in accordance with the Clawback Policy. Based on this analysis, no recovery of incentive-based compensation was required, as the financial statement adjustments did not impact the metrics used to determine incentive compensation during the relevant recovery period, and thus there was no erroneously awarded compensation.

Insider Trading Policy

Our Board has adopted an Insider Trading Policy. For more information about our Insider Trading Policy, please see “Insider Trading Policy” on page24of this Proxy Statement.

Tax and Accounting Considerations

Accounting Treatment

Equity awards granted to employees and non-employee directors under the Company’s equity compensation plans are recognized in accordance with the guidance in Accounting Standards Codification (“ASC”) 718, “Compensation – Stock Compensation”. The Company recognizes compensation cost for stock-based awards over the vesting period, which is generally the service period of the award.

#### CleanSpark302025 Proxy Statement
Deductibility of Executive Compensation

Section 162(m) of the Code generally limits the deductibility of compensation paid to our NEOs to $1 million per year. While we consider the deductibility of compensation as one factor in our overall compensation program design, the Compensation Committee retains the flexibility to provide compensation that exceeds this limit if it determines such amounts are necessary to achieve our compensation objectives. As a result, certain components of our executive compensation program, including base salary and time-vesting equity awards, are not fully deductible under Section 162(m).

Taxation of Parachute Payments and Deferred Compensation

The Company has no obligation to provide any NEO with a “gross-up” or other reimbursement payment for any tax liability that they might owe as a result of the application of Section 280G, 4999, or 409A of the Code. The Company has structured its compensation arrangements with the intention of complying with or otherwise being exempt from the requirements of Section 409A of the Code.

COMPENSATION SETTING PROCESS

Role of the Board of Directors and the Compensation Committee

The Compensation Committee maintains a compensation philosophy which outlines strategic goals in areas such as operating efficiency, financial transparency, and corporate culture. The Compensation Committee observed significant progress in achieving these goals in fiscal year 2024, particularly in operational efficiency, responsible financial growth, and industry leadership. In addition to the above strategic goals, the Committee structured compensation packages to attract and retain top talent.

Role of Management

Although the Board, through the Compensation Committee, retains primary authority over compensation decisions, it has delegated compensation decisions for non-executive employees to the CEO. Management provides updates