Company: TISI
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0000318833-25-000030
Chunk: 45

Company: TEAM INC
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 45
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 the time the awards are made. Messrs. Tucker, Haight and Bouchard’s target annual bonus opportunities for 2024 were 100%, 75% and 60%, respectively, of their annual base salaries. When performance falls below the threshold, executives receive no payout. Executive Bonus Plan payouts for achievement at the threshold level of performance are set at 50% or below the target payout level, payouts for achievement at the target level of performance are set at 100% of the target payout, and payouts for achievement at the maximum level of performance are set at 200% of the target payout. Performance between any of the established levels yields a proportional payout. Annual awards under the Executive Bonus Plan for Strategic Objectives and Individual Objectives are determined based upon the discretionary assessment of each senior executive’s performance against the pre-established objectives set by the Compensation Committee. In utilizing their discretion to evaluate the senior executive’s performance, the Compensation Committee considers the contribution to the Company’s financial and operational performance; employee engagement, retention and development; customer growth and retention; strong Company governance and compliance and short-term and long-term shareholder value. For 2024, the performance measures and weightings for the Executive Bonus Plan were as follows: Adjusted EBITDA 40%; Free Cash Flow 30%; Safety (“TRIR”) 10%, Company Strategic Objectives 10% and Individual Objectives 10%.

The Compensation Committee selected Adjusted EBITDA and Free Cash Flow as performance measures for 2024 to focus the Company’s management team on profitability and cash generation. TRIR was also selected as the critical measure for our safety performance. The Compensation Committee believes that our performance against these performance measures is critical to improving the Company’s overall financial and operational health and is a primary driver, over time, of the value of our Company. Additionally, the Compensation Committee established Company and Individual Objectives for our executives, which were determined to be important drivers of the short- and long-term success of the Company. In selecting these performance measures, setting the performance goals and awarding the corresponding incentive opportunities, the Compensation Committee considered the input of management, members of the Board and other Company stakeholders. The Committee, after reviewing the Company’s performance under the Executive Bonus Plan, has the authority to adjust amounts payable under the Executive Bonus Plan in its discretion.

The Compensation Committee established the following performance goals for the 2024 Executive Bonus Plan.

• Annual Adjusted EBITDA target of $63.1 million with threshold performance of $50.5 million and