Company: PTC
Filing Date: 2025-01-02
Form Type: DEF 14A
Source: 0001104659-25-000041
Chunk: 18

Company: PTC INC.
Filing Date: 2025-01-02
Form: DEF 14A
Chunk 18
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| 2024Highlights | ​ | ​ | ProxySummary | ​ | ​ | CorporateGovernance | ​ | ​ | ExecutiveCompensation | ​ | ​ | AuditorMatters | ​ | ​ | PTC StockOwnership | ​ | ​ | Annual MeetingInformation | ​ | ​ | OtherGovernance | ​ | ​ | Appendix A | ​ |

Compensation Discussion and Analysis Our Compensation Philosophy We Pay for Performance

| ​ | ​ | Our executive compensation programs are designed to attract, motivate, and retain our executives. We emphasize performance-based compensation tied to performance measures we believe will create long-term shareholder value and long-term service-based RSUs that further align our executives’ interests with those of our shareholders. | ​ | ​ |

We believe that equity incentives that vest over multiple years provide an important motivational and retentive aspect to the executives’ overall compensation and align our executives’ interest in the long-term performance of PTC with that of our shareholders. Accordingly, a substantial portion of our executives’ compensation consists of performance-based and service-based RSUs that vest over multiple years. Long-Term Pay and Performance Alignment

| ​ | ​ | Our performance over the past several years reflects the efficacy and success of aligning executive compensation with our strategic plan. This pay-for-performance approach has resulted in pay and performance alignment and will continue to be the centerpiece of our executive compensation programs. | ​ | ​ |

Our Compensation Design and Practices Our executives’ compensation consists of the elements shown below. We believe these components provide an appropriate mix of fixed compensation and at-risk compensation that promotes short-term and long-term performance and rewards our executives appropriately for their performance. With this mix, we provide a competitive base salary and service-based equity that vests over multiple years while providing our executives the opportunity to earn additional compensation through short-term and long-term performance-based incentives designed to drive company performance and create long-term shareholder value. Because a significant portion of our executives’ target compensation is performance-based, actual compensation earned can differ significantly from target compensation. Our executive compensation design also reflects the consideration of prior year say-on-pay votes and comments from shareholders received as part of our shareholder engagement process or otherwise. We believe our 2024 say-on-pay support vote of 92% reflects shareholder approval of the current structure of our executives’ compensation.

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