Company: VUZI
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001104659-25-040266
Chunk: 39

Company: Vuzix Corp
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 39
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 |   |     |               | — |     |             | 108,764 |   |     |                  | — |
| 2023 |     |            | CEO                    |     | $         |   703,118 |     |            | —        |   |     |               |         — |     |              | (1,205,638 | ) |     |               | — |     |             | (27,403 | ) |     |                  | — |
|      |     |            | Non-CEO NEOs (average) |     | $         |   537,524 |     |            | —        |   |     |               |         — |     |              |   (403,766 | ) |     |               | — |     |             | (81,293 | ) |     |                  | — |

CAP to our CEO and other NEOs has moved in line with our TSR –
i.e., declines in our TSR over 2023 and 2024 were paired with declining compensation outcomes during those years. The CAP definition of
pay reflects changes in the value of unvested and vested equity, so declines in the value of our stock price were similarly reflected
in the value of equity (both unvested and vested) as compared to grant-date Summary Compensation Table values of pay. In 2024 and 2023,
the value of outstanding equity held by our NEOs declined and resulted in negative CAP for both our CEO and average NEOs. We would expect
that as the market value of Vuzix stock increases, CAP values would also increase given both the equity tie to stock price and the potential
impact of positive financial results on incentive payouts.

CAP does not move in line with our net loss or income, as the measure can be volatile year-over-year due to accounting requirements, such as the inclusion of changes in the value of inventories, acquisitions, and related metrics. As such, we use other key measures of financial performance for a growing company, such as revenue, gross margin, and EBITDAmargin, in our incentive programs. 34 Reference Charts Director Compensation Employee directors do not receive additional compensation for serving on the Board of Directors beyond the compensation they receive for serving as our officers, as described under “Executive Compensation.” We use a combination of cash and stock-based incentive compensation to attract and retain qualified candidates to serve on the Board of Directors. In setting non-employee director compensation levels, the Board considers the amount