Company: VRT
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001193125-25-094674
Chunk: 46

Company: Vertiv Holdings Co
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 46
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 Grants. In furtherance of our performance-based compensation philosophy and strong alignment with stockholder interests, in 2024, our annual equity compensation granted in early March 2024 to NEOs consisted of stock options that vest annually over four years. Each named executive officer was granted an award of stock options in the amounts set forth in the table entitled “ Grants of Plan-Based Awards in Fiscal 2024” below and with pro rata vesting annually over four years. The amount granted to each continuing NEO was generally based on each individual’s duties and responsibilities, internal pay equity considerations, and prior equity grants to each individual. The Compensation Committee continued to believe that time-vesting stock options were the appropriate long-term performance vehicle for annual grants. Granting stock options is beneficial to the Company for the following reasons:

| • |     | Stock options provide the most direct tie to shareholder value realization. |

| • |     | The ultimate value of the options will align directly with our stockholders’ return through our stock price performance, which in turn depends on our sustainable operational and financial performance, thereby discouraging excessive risk-taking, and encouraging operational execution and continual process improvements to drive efficiencies within our operating systems. |

| • |     | The stock options only have value to the executive if the stock price increases after the grant date, meaning both management and the stockholders benefit. |

| • |     | We benefit from the retention value provided through multi-year vesting and long-term exercise period. |

| • |     | The stock options offer complementary incentives to our annual bonus plan, which is based on financial metrics that are set annually, and the cash bonus opportunities already represent a meaningful portion of target compensation. |

| • |     | The stock options also offer complementary incentives to the Strategic Performance Awards that were previously granted, which are full-value awards but will only become earned and vested if we exceed pre-specified financial goals. |

| • |     | Stock options tie to absolute rather than relative value, which is appropriate because our focus is on the benefit to our stockholders. |

CEO Equity Grants for 2024.Our CEO received an increased equity grant in the form of stock options in 2024. As part of considerations around increasing his total targeted compensation to reflect both his performance and a review of appropriate peer group compensation, the Compensation Committee sought to ensure that a significant portion of his overall compensation is aligned with our pay for performance culture and further aligned directly with our shareholders and shareholder value realization. Thus, the Compensation Committee believed that a significant investment