Company: AEHR
Filing Date: 2025-09-10
Form Type: DEF 14A
Source: 0001654954-25-010620
Chunk: 48

Company: AEHR TEST SYSTEMS
Filing Date: 2025-09-10
Form: DEF 14A
Chunk 48
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ance arrangements, and change in control agreements; |
| 2. | making recommendations to the Board with respect to incentive compensation plans, including reservation of shares for issuance under employee benefit plans;                                                                                                                                                                                                                              |
| 3. | reviewing the performance of the Company’s Chief Executive Officer;                                                                                                                                                                                                                                                                                                                       |
| 4. | making recommendations to the Board on the Company’s executive compensation practices and policies, including the evaluation of performance by the Company’s executive officers and issues of management succession.                                                                                                                                                                      |

Many of the actions take the form of recommendations to the full Board where final approval, rejection or redirection may occur. The Compensation Committee is responsible for administering the compensation programs for all Company executive officers.

Elements of Compensation

In structuring the Company’s compensation program, the Compensation Committee seeks to select the types and levels of compensation that will further its goals of rewarding performance, linking executive officer compensation to the creation of shareholder value, attracting and retaining highly qualified executive officers and maximizing long-term shareholder returns.

The Company designs base salary to provide the essential reward for an executive officer’s work. Once base salary levels are initially determined, increases in base salary are provided to recognize an executive officer’s specific performance achievements.

The Company utilizes equity-based compensation, including stock options and restricted stock units (“RSUs”), to ensure that the Company has the ability to retain executive officers over a longer period of time, and to provide executive officers with a form of reward that aligns their interests with those of the Company’s shareholders. Executive officers whose skills and results the Company deems to be critical to the Company’s long-term success are eligible to receive higher levels of equity-based compensation.

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The Company also utilizes various forms of performance-based compensation, including cash bonuses, commissions, and RSUs that allow the Company to remain competitive with other companies while providing additional compensation for an executive officer’s outstanding results and for the achievement of corporate objectives.

Core benefits, such as the Company’s basic health benefits, 401(k) plan, and life insurance, are designed to provide support to executive officers and their families. The company terminated its Employee Stock Ownership Plan in fiscal 2025 and began to provide a matching contribution to the participants of the Company’s 401(k) plan.

Currently, the Company uses the following executive officer compensation vehicles:

| · | Cash-based programs: base salary, annual bonus plan and commission plans; and                                                                     |
| · | Equity-based programs: The 2023 Equity Incentive Plan (the “2023 Plan”), and the Amended and