Company: AAOI
Filing Date: 2025-02-28
Form Type: PRE 14A
Source: 0001104659-25-019126
Chunk: 34

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-02-28
Form: PRE 14A
Chunk 34
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ix, Casa Systems, DSP Group, EMCORE, Inseego, KVH Industries, and NeoPhotonics; and • Added A10 Networks, ACM Research, CEVA, Clearfield, Comtech Telecommunications, indie Semiconductor, NETGEAR, OneSpan, Semtech, SkyWater Technology, and Vishay Precision Group. Accordingly, the compensation committee established the following compensation peer group for 2024 to assist with the determination of compensation for our executive officers (the “2024 Peer Group”):

| ​ | A10 Networks, Inc.                    | ​ | ​ | Harmonic Inc.             | ​ |
| ​ | ACM Research, Inc.                    | ​ | ​ | indie Semiconductor, Inc. | ​ |
| ​ | ADTRAN, Inc.                          | ​ | ​ | NETGEAR, Inc.             | ​ |
| ​ | Alpha and Omega Semiconductor Limited | ​ | ​ | OneSpan Inc.              | ​ |
| ​ | Aviat Networks, Inc.                  | ​ | ​ | Photronics, Inc.          | ​ |

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| ​ | CEVA, Inc.                       | ​ | ​ | Ribbon Communications, Inc.  | ​ |
| ​ | Clearfield, Inc.                 | ​ | ​ | Semtech Corporation          | ​ |
| ​ | Cohu, Inc.                       | ​ | ​ | SkyWater Technology, Inc.    | ​ |
| ​ | Comtech Telecommunications Corp. | ​ | ​ | Vishay Precision Group, Inc. | ​ |
| ​ | Digi International Inc.          | ​ | ​ | Xperi Inc.                   | ​ |

2024 Compensation Decisions 2024 Base Salary Base salary represents the fixed portion of the target direct compensation for our executive officers and serves to attract and retain highly talented individuals. The compensation committee determines adjustments to base salaries on an annual basis as well as in the event of a promotion or significant change in responsibilities. The compensation committee considers several factors in determining base salaries, including individual performance, the Company’s financial performance, competitive market data, experience and tenure. In the past, the compensation committee has referenced the competitive 50 th percentile when evaluating market competitiveness. Over the past several years, the compensation committee has intentionally positioned base salary below the competitive 50 th percentile to conserve cash spend and the operating expense. In 2024, the compensation committee approved base salary increases of 7% or 12% to account for strong financial performance and stockholder value creation. The