Company: MRCY
Filing Date: 2025-09-10
Form Type: DEF 14A
Source: 0001049521-25-000029
Chunk: 58

Company: MERCURY SYSTEMS INC
Filing Date: 2025-09-10
Form: DEF 14A
Chunk 58
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 acquisition by Arcline), 3D Systems and iRobot due to increasing disparity with respect to both their business models as compared to our own and their relatively modest market values, and Viasat due to its significantly higher revenues as compared to our own. The Committee also determined to add two companies (Ducommun and Knowles) whose business models and financial demographics have a stronger similarity to our own.

#### Use of Market Data
In reviewing competitive compensation levels of our named executive officers at the beginning of fiscal 2025, the Committee considered compensation peer group data for Messrs. Ballhaus and Farnsworth (respectively our Chief Executive Officer and Chief Financial Officer). For Messrs. Kupinsky and Wells (respectively our Chief Legal Officer and our Former Chief Operating Officer), the Committee considered competitive compensation levels based on the average of the compensation peer group data and survey data from the Radford Global Technology Survey ("Survey Data") specific to publicly traded companies of similar industry and revenue size to our own because it believed that including a broader survey group more accurately reflects the labor market for these positions and ensures a meaningful sample size. Finally, the Committee considered only Survey Data for reviewing competitive compensation levels for Mr. Ratner (our Chief Human Resources Officer).

#### Competitive Market Positioning
The Committee's practice is to make pay decisions regarding the elements of compensation that compose each named executive officer's target pay (base salary, target bonus and grant date target value of long-term incentives) in July or August of each fiscal year. As part of its decision-making process, the Committee compares each named executive officer's target pay for the fiscal year against market 25th, median and 75th percentile pay levels as reference points in making executive pay decisions; however, the Committee does not use market data in isolation in determining pay. Instead, competitive market data serves as one of many considerations used by the Committee in determining base salary adjustments and target pay opportunities for both annual and long-term incentives. The primary factors considered by the Committee in making its annual pay determinations are shown below.

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| Target Pay Determinants                       |     |                                                      |     |                                                                                                           |
| •Positioning to competitive market pay levels |     | •Long-term financial and individual performance      |     | •Role and responsibilities relative to benchmark, including as a result of executive leadership team size |
| •Competitive mix of fixed and variable pay    |     | •Tenure and experience in role                       |     | •Internal pay equity