Company: KVHI
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001104659-25-040173
Chunk: 11

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 11
---
4 to improve morale and promote retention after we announced a staged wind-down of our manufacturing operations and a related reduction-in-force. We believe that our executive compensation program appropriately implemented our pay-for-performance philosophy and gave appropriate incentives to our named executive officers to continue their employment and increase stockholder value. Highlights of our executive compensation program include the following: Base Salary . Base salaries of our named executive officers provide fixed compensation to reward individual value that the executive brings to us through experience and past and expected future contributions to our success, while factoring in our specific needs and the base salaries of executives with comparable responsibilities at similar organizations. The compensation committee generally sets base salaries and other compensation after reviewing competitive practices. The compensation committee believes that aligning the base salaries of our named executive officers with appropriate benchmarks is especially critical to a competitive compensation program, as other elements of our compensation are determined as a percentage of base salary. Annual salary adjustments often reflect cost-of-living increases. Annual Cash-based Incentive Compensation . In 2024, we continued to utilize a cash-based incentive compensation plan that tied executive pay to the achievement of our financial performance goals and certain individual performance goals. The incentive program was intended to award compensation based on the degree to which our actual financial results met the financial goals of our internal business plan and the degree to which the executives met their individual performance goals. The incentive program for 2024 was similar to the incentive program for 2023, albeit with a larger number of more targeted financial goals. For 2024, 75% of each executive’s target bonus opportunity was based on achievement of our corporate financial goals, and the remaining 25% was based on achievement of individual performance goals. Our corporate financial performance goals for 2024 were based on adjusted service gross profit, adjusted product gross profit, recurring operating expenses, and adjusted EBITDA, less capital expenditures. These goals accounted for 40%, 10%, 10% and 40%, respectively, of the total target corporate bonus. The two measures of gross profit were calculated by deducting from service sales or product sales, as applicable, cost of service or product sales and making the adjustments described below. Recurring operating expenses were calculated by adding research and development expenses, sales, marketing and support expenses, and general and administrative expenses and making the adjustments described below. Adjusted EBITDA, less capital expenditures was calculated by adding net loss, net interest income/expense, income tax expense, depreciation and amortization, stock-based compensation, long-lived assets impairment charges, employee termination