Company: UFPT
Filing Date: 2025-04-30
Form Type: DEF 14A
Source: 0001171843-25-002638
Chunk: 20

Company: UFP TECHNOLOGIES INC
Filing Date: 2025-04-30
Form: DEF 14A
Chunk 20
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 for the named executive officers provide for a fixed dollar value in equity grants that are used to determine the number of time-based and time- and performance-based restricted stock unit awards granted to each executive officer at the current market price on the date of grant. The intent of this approach is to limit the amount of compensation variability resulting solely from fluctuations in our stock price while still providing variability in compensation based upon the achievement of financial and individual objectives.

Governance Developments

The Compensation Committee and/or the Board of Directors have taken the following steps to promote good corporate governance:

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| • | Declassification of our Board of Directors—In 2020, our Board of Directors and our stockholders approved an amendment to our Certificate of Incorporation to eliminate the classified structure of the Board of Directors and provide for the annual election of directors. |

| • | No Tax Gross‑ups—We do not provide tax gross‑ups to our named executive officers. |

| • | Anti‑Hedging Policy—Our policy prohibiting insider trading practices also prohibits the hedging of our stock by our employees, including our executive officers and directors. |

| • | Anti-Pledging and Margin Account Policy—We maintain a policy prohibiting employees from holding our securities in a margin account or pledging our securities as collateral for a loan. |

| • | No Repricing of Stock Options—Our equity incentive plans prohibit the repricing of stock options or other equity awards without the consent of our stockholders. |

| • | Buyouts of Underwater Options—Our equity incentive plans prohibit us from buying out underwater stock options from our executive officers. |

| • | Stock Ownership Guidelines—We maintain stock ownership guidelines for the named executive officers and independent directors that are described in more detail below. |

| • | Clawback Policy—We have adopted a clawback policy, which is described in more detail below. |

| • | Independent Compensation Committee—Our Compensation Committee is comprised exclusively of independent directors. |

| • | Independent Consultants—The independent consultants who provided benchmarking data with respect to the named executive officers do not provide services to us other than at the direction of the Compensation Committee. |

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Philosophy and Objectives of our Compensation Programs

The primary objectives of our compensation programs are to:

| • | Retain executive talent by offering compensation that is commensurate with pay at other companies of a similar size in similar industries, as adjusted for individual factors, and considering the complexity