Company: NSP
Filing Date: 2025-04-15
Form Type: DEF 14A
Source: 0001000753-25-000013
Chunk: 46

Company: INSPERITY, INC.
Filing Date: 2025-04-15
Form: DEF 14A
Chunk 46
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 weighted at 75% for the adjusted EBITDA component and 25% for the RTSR component. Adjusted EBITDA is subject to a three-year performance period, 2022-2024, with each year being equally weighted for one-third of the target opportunity, while RTSR is measured over the entire 2022-2024 performance period.

For the 2022 LTIP Awards, the Compensation Committee elected to use increasing levels of EBITDA, with certain pre-defined adjustments expressed as a growth percentage established at grant based on the actual end of the prior year adjusted EBITDA, as the performance metric, because it is a key indicator of our: (1) overall productivity; (2) effective management of pricing, direct costs and operating expenses; and (3) ability to grow the business while favorably balancing profitability. For the 2024 performance period, adjusted EBITDA for the 2022 LTIP Awards was generally subject to the same adjustments as the 2024 LTIP Awards, with the exception of not including an adjustment for pre-paid SaaS product implementation expenses. Adjusted EBITDA is a non-GAAP financial measure (for additional information, please see the discussion of Adjusted EBITDA under “— Long-Term Equity Incentive Compensation — Long-Term Equity Awards Granted in 2024 ”).

For RTSR, the Compensation Committee elected to measure the Company’s performance against the performance of 15 companies the Compensation Committee designated as the 2022 compensation peer group. To mitigate the impact of one day’s trading activity, the beginning and ending stock price for each peer company is determined using a 20-day average closing stock price for the first day and last day of the performance period. If the Company’s absolute TSR over the performance period is negative, the payout percentage is capped at 100% of target performance shares granted, regardless of the Company’s RTSR positioning.

The 2022 LTIP Awards are payable in shares of our common stock and include dividend equivalents, payable in additional shares of our common stock, with respect to the number of performance shares actually earned pursuant to the 2022 LTIP Awards if and to the extent dividends are paid on our common stock during the performance period.

The table below outlines the adjusted EBITDA performance achieved for each of the three performance periods within the 2022 LTIP Awards:

| Performance Period 
 (in millions)      |     | Adjusted EBITDA Goals |     |         |     |      |     |