Company: CNDT
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0001677703-25-000062
Chunk: 36

Company: CONDUENT Inc
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 36
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 allocation approach.

Our strategic focus on Growth , Efficiency and Quality is the foundation for our compensation programs with key aspects aligned to incentivizing revenue growth, margin expansion and client retention. Our 2024 compensation program links pay to performance, aligns to our shareholder interests, and is reflective of our 2024 operational and financial results.

Growth : Our opportunity for growth stems from understanding our clients’ businesses and driving valuable outcomes to help them reduce costs, improve efficiencies and performance, and elevate customer experiences.

Our annual compensation bonus plan rewards achievement for success in Growth by including Adjusted Revenue (1) and Net Annual Recurring Revenue (“Net ARR ”) Activity metrics. Our long-term incentive plans also reward Growth , as our performance restricted stock awards have metrics tied to our total shareholder return against our pro xy peers, as well as, revenue growth.

Efficiency : We continue to identify ways to reduce costs and create new efficiencies.

Our compensation plans reward success in Efficiency by measuring improvement in adjusted earnings before interest, taxes, depreciation, and amortization (“ Adjusted EBITDA ”) margin (1) . (Please refer to “Definitions” and “Non-GAAP Financial Measures”.)

Quality : Our clients count on stable, high-quality service delivery. We focus on consistent system uptime and operational stability, and this has resulted in client confidence, satisfaction and retention.

Delivering with high quality impacts our Revenue, Net ARR Activity Metric and Adjusted EBITDA margins and thus is also aligned with the annual incentive plan.

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#### 2024

#### Performance
In March 2023, we outlined a game plan for growth, rationalization, and improved cash flow generation with target 2025 exit rates. 2024 was year two of this plan and we made steady progress. Adjusted Revenue for the year was slightly below expectations, while Adjusted EBITDA and Adjusted EBITDA Margin were at the high end of our expectations. We had a strong year in new capability sales, further penetrating our existing client base, and we continued to maintain a healthy and growing new business pipeline while optimizing our sales structure to drive future success. The Net ARR Activity Metric was strong for the year, reflecting both the solid finish to the year in New Business Sales, as well as improvements in client retention, while new business annual contract value sales finished slightly lower than 2023 on a full year basis, due to a weaker sales start to the year. In addition, through proceeds generated by our divestiture program,