Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 1578

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 9
Chunk 1578
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 executive compensation in fiscal year 2024.

34

Shareholder
Approval of Compensation 

At
the last annual general meeting held on June 24, 2025, shareholders expressed support for our executive compensation programs, with 73%
of votes cast at the meeting voting to ratify the compensation of our named executive officers. Although the advisory shareholder vote
on executive compensation is non-binding, the Compensation Committee has considered, and will continue to consider, the outcome of the
vote and the sentiments of our shareholders when making future compensation decisions for the named executive officers. Based on the
results from our last annual general meeting, the Compensation Committee believes shareholders support the Company’s executive
compensation philosophy and the compensation paid to the named executive officers.

Taking
into account the support of this plan at the June 24, 2025, Annual Shareholders Meeting, the Compensation Committee believes the compensation
program meaningfully explains the Compensation Committee’s compensation decisions and its determination to tie long term incentives
of the Chief Executive Officer to performance criteria. The Compensation Committee continues to reach out to its shareholders regarding
their positions on the Company’s compensation program. In connection with the proxy solicitations, the executive compensation was
discussed with certain of our top shareholders and their general acceptance of the compensation structure is reflected in the proxy vote
results. Accordingly, the Compensation Committee will continue to provide the CEO with a bonus criterion that is based on total revenues
and income from operations on a graduated basis. Bonuses would be paid 60% in cash and 40% in stock valued at the share price on June
30th of the fiscal year in which it was earned.

Governance
and Evolving Compensation Practices

The
Compensation Committee and the Board are aware of evolving practices in executive compensation and corporate governance. In response,
we have adopted and/or maintained certain policies and practices that are in keeping with “best practices” in many areas.
For example:

●
The Compensation Committee may periodically engage an independent compensation consultant to evaluate our chief executive officer’s
executive compensation practices in comparison to a peer group.

●
We do not provide excessive executive perquisites to our named executive officers.

●
Our incentive plans expressly prohibit repricing of options (directly or indirectly) without prior shareholder approval.

●
Our policy on the prevention of insider trading prohibits various types of transactions involving Company stock or securities, including
short sales, options trading, hedging, margin purchases and pledges.

●
Our stock ownership guidelines require our executive officers to align their