Company: TH
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0001104659-25-032818
Chunk: 26

Company: Target Hospitality Corp.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 26
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 | $ | 375,000 | ​ | ​ | ​ | ​                | $ | 360,500 | ​ | ​ | ​ | ​          | ​ | 4.0%  | ​ | ​ |
| ​ | Brendan Dowhaniuk | ​ | ​ | ​                | $ | 325,000 | ​ | ​ | ​ | ​                | $ |       — | ​ | ​ | ​ | ​          | ​ | —     | ​ | ​ |

The Compensation Committee recommended increases for Messrs. Vlacich and Schrenk in connection with their promotions in February 2024. In making its recommendation, the Compensation Committee considered Messrs. Vlacich’s and Schrenk’s increased responsibilities and peer group compensation benchmarking data. The Compensation Committee recommended increases for Mr. Archer and Ms. Lewis, effective in February 2024, consistent with competitive benchmark ranges commensurate with their experience and performance. ANNUAL SHORT-TERM INCENTIVE PLAN The Compensation Committee undertakes a rigorous review and analysis to establish annual performance goals under our annual short-term incentive plan. The performance levels are intended to be aggressive but realistic, to reward prudent decisions without excessive risk-taking, such that achieving threshold levels would represent minimum acceptable performance and achieving maximum levels would represent outstanding performance. The target performance goals align with our annual operating plan. Similar to previous years, the Compensation Committee established Adjusted EBITDA goals and payout levels under the annual short-term incentive plan. For 2024, the Compensation Committee set lower Adjusted EBITDA goals due to several factors. These include a non-recurring $118.2 million infrastructure revenue amortization and a $18 million reduction in facility lease revenue associated with a renewal of a government segment subcontract. These changes required recalibrating the Adjusted EBITDA goals to match the 2024 forecast, ensuring targets are challenging yet achievable. This approach aims to maintain realistic and sustainable growth. The decision to utilize Adjusted EBITDA as the core metric for our short-term incentive plan stems from a strategic alignment with our organizational goals, investor expectations, and a comprehensive assessment of key performance indicators. EBITDA is a crucial measure of operating performance that provides a clear and concise view of the Company’s profitability by excluding non-operational factors such as interest, taxes, and non-cash charges. Our Adjusted EBITDA reflects adjustments to exclude the effects of additional items, including certain items that are not reflective of the ongoing operating results of the Company. These adjustments allow