Company: AEHR
Filing Date: 2025-09-10
Form Type: DEF 14A
Source: 0001654954-25-010620
Chunk: 50

Company: AEHR TEST SYSTEMS
Filing Date: 2025-09-10
Form: DEF 14A
Chunk 50
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son, Chris P. Siu, and Adil Engineer did not earn a profit-based cash bonus for fiscal 2025. Additionally, in fiscal 2025, the Compensation Committee approved a personal performance cash bonus for Gayn Erickson, Chris P. Siu, and Adil Engineer at a target level of $294,000, $170,000 and $110,000, respectively. Based upon personal performance against fiscal 2025 milestones, the Compensation Committee awarded personal performance bonuses of $120,000, $105,000 and $91,250 to Gayn Erickson, Chris P. Siu and Adil Engineer, respectively. The annual incentive bonus plan is discretionary, and the Compensation Committee may modify, suspend, eliminate or adjust the plan, the goals and the total or individual payouts at any time.

Booking Commission

During fiscal 2025, Gayn Erickson was eligible to receive a booking commission based on achievement of various booking objectives or quotas for different products. Under this plan, Gayn Erickson earned $125,677 in fiscal 2025, which is included in the annual non-equity incentive plan compensation column in the Summary Compensation Table. Commissions are considered earned at the time of booking and are paid in the following month. The Company discontinued the commission program for Mr. Erickson following fiscal 2025.

Equity Compensation

The Company awards equity compensation to the Company’s executive officers based on the performance of the executive officer and guidelines related to each executive officer’s position in the Company. The Board determines the Company’s equity compensation guidelines based on information derived from the Company’s experience with other companies and, with respect to the Company’s executive officers, market data of companies in the Company’s industry. The Company typically bases awards to newly hired executive officers and for continuing executive officers on these guidelines as well as an executive officer’s performance for the prior fiscal year. The Company evaluates each executive officer’s awards based on the factors described above and competitive practices in the Company’s industry. The Company believes that equity awards are an important factor in aligning corporate and individual goals. The Company utilizes equity-based compensation, including stock options and RSUs, to encourage long-term performance with corporate performance and extended executive officer tenure producing potentially significant value.

The Company’s Compensation Committee has historically granted stock options and RSUs to executive officers, and in fiscal 2025, only RSUs were granted to executive officers under the 2023 Plan. Such grants are typically made at the first meeting of the Board held each fiscal year.