Company: MRCY
Filing Date: 2025-09-10
Form Type: DEF 14A
Source: 0001049521-25-000029
Chunk: 53

Company: MERCURY SYSTEMS INC
Filing Date: 2025-09-10
Form: DEF 14A
Chunk 53
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 total backlog at year end increased from $1.33 billion for fiscal 2024 to a record $1.40 billion for fiscal 2025, of which $807.8 million is expected to be recognized as revenue during fiscal 2026.

Compensation Philosophy, 2025 Target Pay and 2025 Incentive Plan Payouts

Compensation Philosophy. As part of our results-oriented culture, we emphasize performance through smaller, integrated teams because we believe they promote agility, innovation, efficiency, collaboration and accountability, fostering better decision making and optimizing outcomes. Consistent with this approach and as noted in "Our Strategic Transformation" above, over the past two fiscal years we have substantially reduced the size of our executive leadership team from ten to four members. To attract and retain top talent capable of thriving in this high-performance, high-contribution environment, we believe it is appropriate to consider a full array of market data from the market 25th through 75th percentile pay levels as reference points in making executive pay decisions, subject to adjustments based on experience, performance, the other individual factors as described in "– Use of Market Data and Competitive Compensation Positioning." This approach ensures our executive pay is competitive taking into account the elevated expectations and value delivered by our executives. In addition, consistent with our pay-for-performance orientation, the majority of each executive's target pay is in the form of variable incentive compensation that is subject to future performance to have any realized value. For a further discussion, see "– Mix of Pay."

2025 Target Pay. The table below details each named executive officer's annual base salary, target annual incentive opportunity ("target bonus") and grant date target value of annual long-term incentive awards (collectively, "target pay") for fiscal 2025. We use target pay as the basis for benchmarking our named executive officers' annual compensation and for allocating compensation among different pay elements.

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| Target Pay for Fiscal 2025 
 Current Employees:         |     | Salary(1) |         |     | Target Bonus      
 as % of Salary(1) |     |      |     | Target Annual LTI Awards(2) |           |     | Target Pay |           |
|:---------------------------|:----|:----------|--------:|:----|:------------------|:----|:-----|:----|:----------------------------|----------:|:----|:-----------|----------:|
| William L. Ballhaus        |     | $         |