Company: HFFG
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001680873-25-000022
Chunk: 34

Company: HF Foods Group Inc.
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 34
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 Pay Governance and concluded that the work of Pay Governance did not raise any conflicts of interests.

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• Transparency and Disclosure: We are committed to transparency and disclosure regarding our executive compensation practices. We believe that stockholders have the right to understand how executive pay is determined and how it aligns with Company performance and stockholder interests.

The compensation program for the Company’s NEOs consists of the following components:

• Base Salary: Provides a fixed annual salary to NEOs, reflecting their experience, skills, and responsibilities within the organization, and ensuring a competitive level of compensation relative to industry benchmarks.

• Annual Incentive Compensation: Performance-based bonuses tied to the achievement of annual financial targets, operational objectives, and individual performance goals, encouraging executives to deliver results that drive business success.

• Long-Term Incentive Plan: Equity-based awards designed to align NEO interests with long-term stockholder value creation and incentivize sustained performance and growth.

• Benefits: Comprehensive benefits packages provided to NEOs on the same basis as other employees, including health insurance, retirement plans, and other employee benefits, aimed at supporting the well-being and financial security of executives, employees and their families.

Pay Mix

The Company’s compensation mix is designed to align with the Company’s strategic objectives and performance goals, ensuring that executive pay reinforces the Company’s strategic priorities. The CEO and each of the other NEOs each receive compensation in each of these forms.

| Element                       |     | Form                                                                 |     | Purpose                                                                                                                                |     | Metrics                                                                                                                                                                   |     | Time-Period               |     | % of 2024 Pay Mix for NEOs(1) |
| Base Salary                   |     | Cash                                                                 |     | To attract and retain and to provide a competitive salary                                                                              |     |                                                                                                                                                                           |     | 1-year                    |     | 31%                           |
| Annual Incentive Plan         |     | Cash                                                                 |     | To incentivize for overall company performance and individual objectives                                                               |     | •Financial Targets (70%)                                                                                                                                                  
 i.Net Revenue (10%)                                                                                                                                                       
 ii.Gross Profit (45%)                                                                                                                                                     
 iii.Internal Adjusted EBITDA(2)(45%)                                                                                                                                      
 •Initiative Based Targets (30%)                                                                                                                                           |     | 1-year performance period |     | 33%                           |
| Equity Incentive Compensation |     | Restricted Stock Units (“RSUs”) and Performance Share Units (“PSUs”) |     | To incentivize for long-term financial performance and drive long-term