Company: PENG
Filing Date: 2025-12-19
Form Type: DEF 14A
Source: 0001616533-25-000073
Chunk: 59

Company: Penguin Solutions, Inc.
Filing Date: 2025-12-19
Form: DEF 14A
Chunk 59
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 Compensation Committee works with the Compensation Consultant to develop and/or evaluate a peer group intended to represent companies with technology product manufacturing operations and a financial profile similar to ours. After consulting with its independent Compensation Consultant, the Compensation Committee updated the peer group used for purposes of compiling compensation benchmarking data for our fiscal 2025 executive compensation programs in order to broaden our peer group and reflect our strategic shift toward the advanced computing and software and services space. Given the evolution of our business and the Company’s revenue profile and valuation in fiscal 2024, the Compensation Committee sought to include companies with similar growth profiles and business characteristics to Penguin Solutions ( e.g., business-to-business products and services, semiconductor and semiconductor equipment, computing infrastructure, high-level computing, and internet-of-things companies) against which our business can be appropriately compared.

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The peer group for fiscal 2025 was selected based on the following criteria:

• Publicly traded, U.S.-headquartered companies;

• Comparable semiconductor, semiconductor materials and equipment, software and services, technology hardware and equipment, communications equipment, electronics manufacturing, and electronics equipment and instruments companies;

• Market capitalization generally targeted between 0.25x and 5x that of Penguin Solutions ;

• Revenue for the most recent four quarters generally targeted between 0.33x and 3x that of Penguin Solutions; and

• Valuation multiple above 1.5x and gross margin of +50% for software and services companies.

Based on the foregoing review, in June 2024 the Compensation Committee removed Diodes Incorporated, Methode Electronics, Inc., OSI Systems, Inc., and SunPower Corporation from the executive compensation peer group and added BlackBerry Limited, Digi International Inc., NetScout Systems, Inc., and Pegasystems Inc. for fiscal 2025. The following eighteen companies represent the revised executive compensation peer group used for NEO pay competitiveness assessments in fiscal 2025:

| Advanced Energy Industries, Inc.      |     | ePlus inc.             |     | NetScout Systems, Inc.     |
| Alpha and Omega Semiconductor Limited |     | Extreme Networks, Inc. |     | Pegasystems Inc.           |
| BlackBerry Limited                    |     | Ichor Holdings, Ltd.   |     | Photronics, Inc.           |
| Cohu, Inc.                            |     | Infinera Corporation   |     | Ribbon Communications Inc. |
| Corsair Gaming, Inc.                  |     | MaxLinear, Inc.        |