Company: IPGP
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0001111928-25-000054
Chunk: 36

Company: IPG PHOTONICS CORP
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 36
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, inventory reductions and planning to sell its Russian operations which position the Company for improved performance as the global demand environment recovers, and the need to retain and motivate the management in a year of CEO leadership transition, the Committee approved a revised AIP in August 2024 (the "Revised AIP') to align annual cash incentive pay more closely with the Company's goals and revised expectations for 2024.

The financial performance measure under the Revised AIP was net sales for the second half of 2024 and the total payout for financial and personal performance under the Revised AIP was capped at 62.5% of the original target payout, which corresponds to payout at threshold performance under the Original AIP. The Compensation Committee chose net sales as the sole financial measure for the Revised AIP because of the uncertainty of earnings in light of cost cutting measures that were in development then, potential restructuring charges, the potential financial impacts from the sale our Russian operations, and additional sanctions impacting the Company's supply chain. The following table sets forth the threshold targets and maximum financial performance levels under the Revised AIP.

|                       |     | Revised AIP                      |     |     |                |     |     |                |     |     |              |     |     |
|                       |     | 2024 Financial Performance Goals |     |     |                |     |     |                |     |     |              |     |     |
| Financial Metric      |     | Threshold                        
 (50% funding)                    |     |     | Target         
 (100% funding) |     |     | Maximum        
 (100% funding) |     |     | 2024 Results |     |     |
| Net Sales 2H2024 ($M) |     |                                  |     | 385 |                |     | 428 |                |     | 471 |              |     | 467 |

Pursuant to the terms of his employment agreement, Dr. Gitin, who commenced employment in June 2024, received a new hire bonus for fiscal year 2024 equal to 100% of his base salary, payable at the same time as payouts for the other NEOs under the 2024 AIP, and was not a participant in the Original AIP or the Revised AIP. Drs. Scherbakov and Ovtchinnikov were not impacted by the Revised AIP because they were no longer executive officers at the time of payout of the Revised AIP.

#### Individual Performance Factor
Individual objectives are