Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 281

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 281
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outstanding stock options and equity grants held by the executive officers for the purpose of considering the retention value of any
additional equity awards.

As
a general guideline, for our named executive officers, we aim to set base salary, cash compensation and total compensation at approximately
the mean market range. Our analysis determined that the base salary of our Chief Executive Officer was slightly above the mean, cash
compensation was generally within the mean, but the total direct compensation was below the mean. As such, it was determined to develop
a long-term, performance-based element of the compensation that brought the total direct compensation within the mean.

2025
Executive Compensation Components 

Base
Salary 

An
executive’s base salary is a fixed element of the executive’s compensation intended to attract and retain executives. It
is evaluated together with components of the executive’s other compensation to ensure that the executive’s total compensation
is consistent with our overall compensation philosophy. Base salaries are adjusted annually by the Compensation Committee.

The
base salaries were established in arms-length negotiations between the executive and the Company, considering their extensive experience,
knowledge of the industry, track record, and achievements on behalf of the Company. The Company expects each named executive officer
to contribute to the Company’s overall success as a member of the executive team rather than focus solely on specific objectives
within the officer’s area of responsibility.

37

Mr.
Ghauri’s base salary for fiscal year 2025 was $840,000 and in addition he received $200,000 in allowances. Mr. Ghauri’s base
salary will be $840,000 and allowances will remain the same for fiscal year 2026. Mr. Almond’s base salary for fiscal year 2025
was $275,000. For fiscal year 2026, Mr. Almond’s salary will be $281,875. Ms. McGlasson’s salary for fiscal
year 2025 was $252,312 and her base salary for fiscal year 2026 will be $258,620. The Compensation Committee determined that salary alone
was an adequate basis for short term compensation, and that equity incentives would be used for the long-term elements of incentive programs
for Ms. McGlasson and Mr. Almond.

Annual
Bonus

Our
compensation program includes eligibility for bonuses as rewarded by the Compensation Committee. All executives are eligible for annual
performance-based cash bonuses in accordance with Company policies. The Compensation Committee takes into consideration the executive’s
performance during the previous year