Company: LPX
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001104659-25-028584
Chunk: 46

Company: LOUISIANA-PACIFIC CORP
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 46
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 the awards. The 2022 Plan allows LP to offer equity-based compensation to its officers, employees, directors and consultants in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, other stock-based awards and/or cash-based awards. As of December 31, 2024, 447,586 shares of LP Common Stock were subject to outstanding awards, and 3,201,690 shares of LP Common Stock were reserved for future issuance, under the 2022 Plan.

LOUISIANA-PACIFIC CORPORATION ● 2025 PROXY STATEMENT | 44

TABLE OF CONTENTS COMPENSATION OF EXECUTIVE OFFICERS Cash incentive compensation is designed to drive increasing profits and returns The Compensation Committee strongly believes that linking compensation to certain critical performance metrics results in increased profits and stronger stockholders returns. For 2024, LP’s annual cash incentive award plan (“Annual Incentive Plan”) for NEOs was based upon Adjusted EBITDA (as defined below, and as adjusted for certain market influences related to OSB commodities), Economic Profit (as defined below) and certain business unit-specific operational goals for the year ended December 31, 2024. The Economic Profit metric further links asset utilization and financial performance of LP. No amounts would have been payable under the 2024 Annual Incentive Plan unless the minimum threshold level for at least one of the corporate or business unit-specific performance goals was achieved. In 2024, the maximum threshold level for each of the corporate and business unit-specific performance goals was exceeded except for the business unit performance goal for the South America business, which exceeded the target threshold level, and annual cash incentives pursuant to the 2024 Annual Incentive Plan were paid at an average of 194% of the target award amount. Base salary is appropriately weighted to emphasize performance-based compensation The Compensation Committee continuously strives to appropriately weight base salary and variable compensation (annual cash and equity incentives) for each NEO. The target compensation mix for LP’s NEOs reflects LP’s emphasis on long-term, performance-based compensation that incentivizes LP’s NEOs to make strategic decisions that will strengthen its business and create long-term value for its stakeholders. Performance-based compensation includes PSUs and the Annual Incentive Plan. In 2024, 58% of LP’s CEO’s target compensation and 46% of LP’s other NEOs’ target compensation was performance-based, as shown in the graphs below. LOUISIANA-PACIFIC CORPORATION ●