Company: NOTV
Filing Date: 2025-01-23
Form Type: DEF 14A
Source: 0001628280-25-002250
Chunk: 42

Company: Inotiv, Inc.
Filing Date: 2025-01-23
Form: DEF 14A
Chunk 42
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The Company’s executive compensation practices are affected by the highly competitive nature of the biotechnology industry. The Company has historically developed compensation packages for the Company’s executive officers that meet each of the following three criteria: (1) market compensation levels competitive with companies of similar size, geographic characteristics and performance to the Company; (2) performance-based "at risk" pay; and (3) shareholder-aligned incentives that are structured to create alignment between the shareholders and executives with respect to short-term and long-term objectives.

For fiscal year 2024, the Compensation Committee recognized that because the Company faced challenging economic conditions, coupled with market uncertainties that were outside its control, it could not reasonably establish performance metrics and goals for fiscal 2024, and therefore, any cash bonus amounts would be discretionary. Following the end of fiscal 2024, the Compensation Committee reviewed Company and individual performance during fiscal 2024, and while it recognized the substantial contributions made by the NEOs in fiscal 2024, the Committee determined that no annual cash bonus amounts would be paid to any of the NEOs relative to fiscal 2024 performance.

With respect to equity awards, the Compensation Committee approved equity awards, including options and RSUs, to be granted to each of the NEOs in August 2024. When determining the amount of each equity award, the Compensation Committee considered factors including each NEO’s position and scope of responsibility, the importance of retaining the services of the NEOs and the NEO’s opportunity to drive Company performance and contribute to the long-term success of the Company.

The Compensation Committee has retained Meridian Compensation Partners LLC (“Meridian”) as its independent compensation consultant and requested that Meridian provide competitive market assessments regarding executive officer compensation, which were used by the Compensation Committee in determining the appropriate executive compensation levels for 2024 and 2025, in line with the Company’s compensation plans, philosophies and goals.

#### Compensation Risks
The Company has reviewed the elements of executive compensation to determine whether any portion of executive compensation encouraged excessive risk taking. It concluded that:

• The combination of base salary and incentive compensation, including annual incentive compensation and long-term incentive compensation, reduces the significance of any one particular compensation element.

• Vesting periods for equity compensation awards, which historically have consisted of option grants and RSUs, encourages long-term perspectives among award recipients.

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• The Company's performance goals are appropriately set in order to avoid targets that, if not met, result in a large percentage loss of compensation.

Based on the