Company: LGIH
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001580670-25-000028
Chunk: 50

Company: LGI Homes, Inc.
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 50
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 financial performance through annual and long-term incentives. The Target Compensation Mix charts below describe each of the compensation elements for the CEO and other NEOs for 2024 as a percentage of total target direct compensation.

#### Target Compensation Mix
The elements of the NEO compensation program have remained relatively consistent year to year, with target compensation allocated between fixed and variable, cash and non-cash and short-term or long-term components. The Target Compensation Mix charts above include 2024 base salary and award opportunities related to annual and long-term incentive compensation, granted in or with respect to fiscal 2024 and valued at target levels, and do not include any amounts paid with respect to prior years’ incentive award grants.

The value of our RSUs and PSUs is directly linked to LGI’s stock performance; the settlement value of the PSUs is dependent on our basic earnings per share (“EPS”) for the three-year performance period as discussed under “What We Paid and Why - Compensation for NEOs - 2024 LTI Program”. Including the annual incentive cash bonus which is dependent on our home closings and financial performance for 2024, these three performance-linked components constitute approximately 85% and 71%, of the total target direct compensation of our CEO and our three other NEOs (on average), respectively.

#### Philosophy of Our Executive Compensation Program
Our executive compensation program directly links a substantial portion of annual executive compensation to our performance. These plans are designed to deliver highly competitive compensation for superior company performance. Likewise, when company performance falls short of expectations, these variable incentive programs deliver lower levels of compensation. However, the Compensation Committee endeavors to balance pay for performance objectives with retention considerations so that, even during a temporary downturn in the economy and the homebuilding industry, the program continues to ensure that qualified, successful, performance-driven employees stay committed to increasing our long-term value. Furthermore, to attract and retain highly skilled management, our executive compensation program must remain competitive with those of comparable employers who compete with us for talent.

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#### Core Principles
We use the following key principles as the framework for our executive compensation philosophy to attract, develop and retain business leaders to drive financial and strategic growth and build long-term stockholder value:

• Pay for Performance: Provide base salaries that reflect each NEO’s background, experience, and performance, combined with variable incentive compensation that rewards executives when superior performance is achieved, while subpar performance results in compensation below that of market benchmarks;

• Competitiveness and Retention: Provide competitive pay opportunities