Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1382

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7A
Chunk 1382
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 of companies, as well as a subset of the data from those
companies that have a similar number of employees as the Company. The Compensation Committee determines the appropriate
compensation packages in addition to taking into account the unique global scale of the Company’s business. While taking into
account consultants’ general recommendations about the size and components of compensation, other publicly available compensation
information, peer groups and alike, we believe our philosophy to continue on the basis of a pay-for-performance is the best framework
for setting executive compensation.

In
establishing the compensation of our named Chief Executive Officer and President, we based the amounts primarily on the market data and
advice provided by Compensation Resources, Inc. with respect to the compensation paid to individuals who perform substantially similar
functions within the peer group companies. In connection with the other named executive officers, we also relied on the recommendations
of the Chief Executive Officer’s analysis relative to those individuals’ performance and compensation. We also examined the
outstanding stock options and equity grants held by the executive officers for the purpose of considering the retention value of any
additional equity awards.

As
a general guideline, for our named executive officers, we aim to set base salary, cash compensation and total compensation at approximately
the mean market range. Our analysis determined that the base salary of our Chief Executive Officer was slightly above the mean, cash
compensation was generally within the mean, but the total direct compensation was below the mean. As such, it was determined to develop
a long-term, performance-based element of the compensation that brought the total direct compensation within the mean.

2025
Executive Compensation Components 

Base
Salary 

An
executive’s base salary is a fixed element of the executive’s compensation intended to attract and retain executives. It
is evaluated together with components of the executive’s other compensation to ensure that the executive’s total compensation
is consistent with our overall compensation philosophy. Base salaries are adjusted annually by the Compensation Committee.

The
base salaries were established in arms-length negotiations between the executive and the Company, considering their extensive experience,
knowledge of the industry, track record, and achievements on behalf of the Company. The Company expects each named executive officer
to contribute to the Company’s overall success as a member of the executive team rather than focus solely on specific objectives
within the officer’s area of responsibility.

37

Mr.
Ghauri’s base salary for fiscal year 2025 was $840,000 and in addition he received $200,000 in allowances. Mr. Ghaur