Company: COHU
Filing Date: 2025-04-02
Form Type: DEF 14A
Source: 0001437749-25-010672
Chunk: 37

Company: COHU INC
Filing Date: 2025-04-02
Form: DEF 14A
Chunk 37
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 net sales from 2020 through 2023 (in thousands: $636,007, $887,214, $812,775, $636,322 respectively), divided by the sum of each year’s net sales from 2020 through 2023. |

| (2) | 4-year rolling sales growth result is weighted at 30% of the total 2024 STI target award amount |

| (3) | 2024 GAAP pre-tax Income (Loss) was ($64,946) (in thousands) which is (16.2%) of net sales of $401,779 (in thousands). 2024 non-GAAP pre-tax Income (Loss) was ($29) (in thousands) which is (0.0%) of net sales of $401,779 (in thousands).  A reconciliation of GAAP to non-GAAP pre-tax income is included in Appendix A to this proxy statement. |

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On February 6, 2025, the Compensation Committee, reviewed and approved the short-term incentive plan for 2025 (the “2025 STI”). The target incentive opportunities for our NEOs did not change from the 2024 STI targets. For the 2025 STI, we added a one-year sales growth rate metric to complement the existing four-year rolling sales growth metric, each weighted at 25% of the total 2025 STI incentive opportunity. The remaining 50% of the incentive opportunity will continue to be based on non-GAAP pre-tax income.

Long-Term Incentive Compensation

We provide long-term incentive compensation in the form of equity awards to our executive officers, including our NEOs. These awards are intended to align the interests of our executive officers with those of our stockholders by creating an incentive for them to maximize long-term stockholder value. They are also designed to encourage our executive officers to remain employed with us in a very competitive labor market. The Compensation Committee regularly monitors the environment in which we operate and revises our long-term incentive compensation arrangements as it determines to be necessary and appropriate to help meet our business objectives, including increasing long-term stockholder value.

Generally, in determining the size of the equity awards granted to our executive officers, including our NEOs, the Compensation Committee takes into consideration the recommendations of our CEO (except with respect to his own equity awards), an analysis of competitive market data prepared by its compensation consultant (with particular reference to the median of the competitive market