Company: NSP
Filing Date: 2025-04-15
Form Type: DEF 14A
Source: 0001000753-25-000013
Chunk: 34

Company: INSPERITY, INC.
Filing Date: 2025-04-15
Form: DEF 14A
Chunk 34
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 new solution, which would combine Workday’s HR technology with the Company’s HR services, has the potential to positively impact the long-term growth and profitability of the Company. Most of the investment associated with these development efforts were reflected as expenses, resulting in adjusted EBITDA of $270 million, which is lower compared to the prior year. Despite the continued strong execution of our leadership team and employees during 2024, the continuation of widespread economic uncertainty and lower hiring by our clients resulted in a 2% decrease in our average number of worksite employees (“WSEEs”) paid during 2024 compared to 2023. While growth in average WSEEs paid fell short of expectations, our continued strong level of profitability allowed us to increase our regular quarterly dividend to a record $0.60 per share, resulting in annual dividends of $2.37 per share.

Consistent with our pay-for-performance approach of tying a significant portion of NEOs compensation to corporate performance, our reduced performance resulted in below target level performance payouts under our annual incentive program. See “ — 2024 Short-Term Incentive Program Performance Results ” later in this CD&A for additional details.

1 Mr. Allison served as the Company’s Executive Vice President of Comprehensive Benefits Solutions and Chief Profitability Officer until November 15, 2024, when he was promoted to the position of Executive Vice President of Finance, Chief Financial Officer and Treasurer.

2 Mr. Sharp retired from the Company effective November 15, 2024.

#### Insperity222025 Proxy Statement
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Note: Adjusted EBITDA is a non-GAAP financial measure used by management to analyze the Company’s performance. Adjusted EBITDA represents EBITDA (earnings before interest, taxes, depreciation and amortization) plus stock-based compensation and amortization of SaaS implementation costs. Please read Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations —Non-GAAP Financial Measures,” in our annual report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 10, 2025, our prior Form 10-K for the year ended December 31, 2023 filed with the SEC on February 8, 2024, our prior Form 10-K for the year ended December 31, 2022 filed with the SEC on February 9, 2023, and our prior Form 10-K for the year ended December 31, 202