Company: LGIH
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001580670-25-000028
Chunk: 51

Company: LGI Homes, Inc.
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 51
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 that attract and retain the highest quality professionals and reward loyalty;

• Accountability for Short- and Long-term Performance: Strike an appropriate balance between achieving both short-term and long-term business objectives through compensation awards; and

• Alignment of Stockholders’ Interests: Link the interests of our executive officers with those of our stockholders through significant equity-based compensation.

Components and Objectives of Our Compensation Program

The Compensation Committee has built our executive compensation program upon a framework that includes the components and objectives listed below. The Compensation Committee routinely reviews each component of the executive compensation program to see how it affects target total pay levels and considers pay ranges for similar executive positions among the median of similarly-sized companies.

|                                                               |     | Component                                                                                                                                |     | Objective of Element                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     | Description                                                                                                                                                                                                                             |
| Annual Cash Compensation                                      |     | Base Salary                                                                                                                              |     | To provide an appropriate base salary mitigating inappropriate risk-taking by providing a fixed and certain level of income, paid bi-weekly.                                                                                                                                                                                                                                                                                                                                                                           |     | Base salaries are set at market competitive levels, subject to adjustment for a number of other factors such as merit increases, unique job responsibilities, experience, individual contributions and number of years in the position. |
| Annual Cash Bonus - Short-term Incentive (“STI”) Compensation |     | To incentivize and reward performance on key metrics that support the Company’s annual operating plan.                                   
 Promote Pay for Performance in a competitive way.                                                                                        
 Generally comparable to incentive ranges among the median of similarly-sized companies based upon achieving specified performance goals. |     | Designed to offer opportunities for cash compensation directly tied to Company performance relative to established performance targets that the Compensation Committee ultimately believes create stockholder value. Annual cash bonus payouts may range from 0% to 200% of the target bonus, based on performance relative to the designated targets. (See “What We Paid and Why - Compensation for NEOs” below.) We pay the annual cash bonus during the first quarter for performance during the prior fiscal year. |     |                                                                                                                                                                                                                                         |

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|                                  |     | Component                                                                  |     | Objective of Element                                                                                                                                                                                                                                   |     | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Long-term Incentive (“LTI”)      
 Compensation                     |     | Performance-based Restricted Stock Units (PSUs)                            |     | To strengthen alignment with stockholders’ interests, 80% of the LTI is performance-based.                                                                                                                                                             |     | The compensation