Company: CLH
Filing Date: 2025-04-11
Form Type: DEF 14A
Source: 0000822818-25-000011
Chunk: 61

Company: CLEAN HARBORS INC
Filing Date: 2025-04-11
Form: DEF 14A
Chunk 61
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, the results used for measuring incentive compensation exclude the acquisitions of Noble and Hepaco, both of which were acquired in March 2024 and not final when the incentive targets were approved. For the performance awards granted in 2023, the results used for measuring incentive compensation also exclude the acquisition of Thompson Industrial which was acquired in March 2023 and therefore not final when the incentive targets were approved.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                   |     | Adjusted Return on Invested Capital (“ROIC”) |     | Represents consolidated Adjusted EBITDA (a non-GAAP measure defined and reconciled in Appendix A) less (i) depreciation expense (a GAAP measure) and (ii) an assumed income tax expense calculation using a blended statutory rate of 30% and applied to Adjusted EBITDA less depreciation.  The resulting measure is then divided by the sum of the average stockholders’ equity and debt obligation balances for the year, less average excess cash.  Average debt obligations include the liabilities associated with finance leases. Excess cash is considered amounts of cash and short-term marketable securities held by the Company in excess of $100 million.  Actual results exclude the impacts of acquisitions, severance, and integration. For the performance awards granted in 2024, the results used for measuring incentive compensation exclude the acquisitions of Noble and Hepaco, both of which were acquired in March 2024 and the related issuance of debt to fund the acquisitions as these transactions were not final when the incentive targets were approved. For the performance awards granted in 2023, the results used for measuring incentive compensation also exclude the acquisition of Thompson Industrial which was acquired in March 2023 and therefore not final when the incentive targets were approved. |

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Reconciliation of Results for Annual Incentive Performance Measures:

In applying the definitions and calculations above, the incentive compensation measures presented in this proxy statement differ from the corresponding measures reported in the Company’s quarterly earnings, predominately due to the impact of acquisitions, severance and integration costs which were not final when the incentive targets were set and approved. The following table reconciles the amounts previously disclosed by the Company to those used in determining the 2024 incentive compensation achievement, as applicable (numbers in thousands, except for percentages):

|                                                    |     | Revenue |           |     | Adjusted EBITDA |           |     | Adjusted EBITDA 
 Margin          |     | Adjusted  
 Free Cash 
 Flow      |         |
|