Company: CLSKW
Filing Date: 2025-01-22
Form Type: DEF 14A
Source: 0000950170-25-007763
Chunk: 39

Company: CLEANSPARK, INC.
Filing Date: 2025-01-22
Form: DEF 14A
Chunk 39
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 executing strategies that drive corporate growth and sustainability. We compensate our executives commensurate with their performance relative to peers, and we benchmark compensation, including base salary, to other peers annually.

Non-Equity Incentive Compensation and Discretionary Annual Cash Bonuses

Non-equity incentive compensation and discretionary annual cash bonuses are awarded based on the achievement of specific performance criteria, including but not limited to (i) maintaining or enhancing facility and mining uptime, (ii) improving fleet energy efficiency, (iii) achieving hashrate targets, (iv) achieving growth targets, (v) achieving identified growth targets while adhering to financial and time constraints, (vi) reaching targets i, ii, iii and iv while optimizing our cost structure, and (vii) other strategic targets or goals as may be set by the Compensation Committee, in discussion with the Board, from time to time. This model encourages strategic leadership by rewarding executives for formulating and executing strategies that drive corporate growth and position the Company and its stockholders for long-term success. The Compensation Committee believes that the non-equity incentive compensation plan and discretionary annual cash bonuses align executive officer efforts directly with the Company’s and its stockholders’ strategic goals, ensuring they focus not only on managing current operations but also on future success. Additionally, these arrangements drive operational excellence by incentivizing improvements in efficiency, cost optimization, and productivity. This focus on efficiency is particularly relevant in bitcoin mining, where optimizing energy use directly impacts the costs of bitcoin production and the efficiency of the Company’s fleet, enhancing both profitability and corporate responsibility. Finally, non-equity incentives foster long-term commitment by tying significant financial rewards to the achievement of specific, impactful short- and long-term goals, thereby promoting sustained leadership and strategic continuity essential for corporate longevity and stability.

#### CleanSpark282025 Proxy Statement
When evaluating performance for the payment of non-equity compensation plan and discretionary bonuses, the Compensation Committee reviewed performance over fiscal year 2024. That evaluation included a comparison to prior year performance and current period performance as reported by competitors, including the following metrics:

Target 1: Increase CleanSpark revenues. For fiscal year 2024, the Company posted revenue of approximately $379 million, a 125% increase over fiscal year 2023.

Target 2: Increase hashrate. For fiscal year 2024, the Company surpassed 27 EH/s, more than 2.5 times the highest rate achieved in fiscal year 2023. In December 2024, the Company surpassed 37.5