Company: CODI-PB
Filing Date: 2025-04-14
Form Type: DEF 14A
Source: 0001140361-25-013771
Chunk: 47

Company: Compass Diversified Holdings
Filing Date: 2025-04-14
Form: DEF 14A
Chunk 47
---
 areas, collectively underpinned by sound governance practices. This framework enables a comprehensive and flexible approach to both the acquisition and management of our subsidiaries, affirming that key ESG factors are integral to long-term value creation. This facilitates oversight of our acquisitions and enhances our responsiveness to stakeholder needs. Developed following a materiality assessment we performed in 2022; our framework underwent a significant update in 2023. We engaged an external third party to refine our materiality assessment, including performing an assessment of double materiality at the Company level. Subsequently, this external third party conducted initial formal materiality assessments for five of our nine subsidiary businesses.

TABLE OF CONTENTS

| 42 |     | 2025 Proxy |

Overview of Our Executive Compensation Our Manager determines and pays the compensation of the executive officers seconded to us, as well as the employees of our Manager performing services on our behalf. We do not reimburse our Manager for the compensation paid to our Chief Executive Officer, Mr. Sabo. We do, however, pay our Manager a quarterly management fee and our Manager uses the proceeds from the management fee to pay employees performing services on our behalf, to cover the Manager’s operating expenses and to pay distributions to Mr. Sabo in respect of his equity ownership interest in and role as the managing member of our Manager. Our Compensation Committee, which is comprised solely of independent directors, oversees the calculation and payment of the management fee paid to our Manager. The Company’s Board, after due consultation with the Manager, has the right to request that the Manager replace any individual seconded to the Company, including, without limitation, Mr. Sabo as the Company’s Chief Executive Officer, subject to the terms and conditions of the Management Services Agreement and the LLC Agreement. We do not grant option awards and, therefore, the Company does not have a policy on the timing of awarding option-like awards in relation to the disclosure of material nonpublic information. Pursuant to the Management Services Agreement, we reimburse our Manager for the compensation paid to our current and former Chief Financial Officers, Mr. Keller, and Mr. Faulkingham, respectively. Such reimbursement is approved by the Compensation Committee, which is comprised solely of independent directors. The terms and conditions of each of Mr. Keller’s and Mr. Faulkingham’s employment are governed by employment agreements between our Manager and Messrs. Keller and Faulkingham, respectively. A description of the compensation of Messrs. Keller and Faulkingham is set forth below under the headings “ Employment Agreements –