Company: NEOG
Filing Date: 2025-09-12
Form Type: DEF 14A
Source: 0000950170-25-114381
Chunk: 27

Company: NEOGEN CORP
Filing Date: 2025-09-12
Form: DEF 14A
Chunk 27
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 exit of the transition distribution agreement related to the 3M transaction and associated ERP implementation.

Capital expenditures were elevated in fiscal 2025, due to investment required in the ongoing integration of the former 3M Food Safety Division, which negatively impacted cash flow. The final integration workstream, the start-up of Petrifilm production, progressed well in the fiscal year, with construction of the main production facility completed and a significant amount of production equipment installed.

The Company completed a refinancing of its term loan and revolving credit facility, providing financial flexibility by extending the maturity to 2030 while maintaining the same liquidity position and realizing interest expense savings. Portfolio review activities, which began in fiscal year 2024, progressed in fiscal 2025, with the announcement of the divestiture of the Company’s global cleaners & disinfectants business, a transaction that was completed subsequent to the end of the fiscal year.

Consideration of Last Year’s Say-on-Pay Vote

At the Company's 2024 Annual Meeting of Shareholders, shareholders were provided with an opportunity to cast an advisory vote on the compensation of the Company’s named executive officers. The say-on-pay vote received only 48.8% approval, a significantly lower level of support than prior years. The Compensation Committee and all independent members of the Board took this result very seriously and shareholders were actively engaged to understand the issues and concerns motivating such a response. We will continue to seek input from our shareholders to understand their views with respect to our approach to executive compensation, and, particularly in connection with the Compensation Committee’s efforts to link compensation to performance.

| Neogen Corporation | 2025 Proxy Statement | 27 |

#### Compensation Discussion and Analysis
Shareholder Outreach and Engagement Neogen engaged in significant shareholder outreach in response to the failed Say-on-Pay for fiscal year 2024. Specifically, we along with Mr. Borel, our Board Chair, reached out to our largest shareholders and met with ninety percent of them. We listened to and responded to the areas of concern from our shareholders. Below are the specific topics that were discussed along with Neogen’s planned actions:

| What We Heard:                                                                   
 Annual incentive plan financial target and actual performance were not disclosed 
 Long-term Incentive Awards lack performance conditions                           
 CEO equity award increased while stock price decreased YOY                       |     | What We Did:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 Neogen has meaningfully increased the level of disclosure around the Incentive Compensation Plan (ICP) within this Proxy Statement,