Company: SXT
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001140361-25-008248
Chunk: 46

Company: SENSIENT TECHNOLOGIES CORP
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 46
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 Each three-year performance goal for 2025-2027 is subject to a minimum, target, and maximum level for purposes of determining any awards as shown above. Three-year performance below the minimum level would result in no award for that performance goal, while three-year performance equal to or above the maximum level would result in an award of 200% of the target level for that performance goal. Interpolation will be used to calculate the award if the performance falls between the various levels. |

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| (2) | Our stock plans provide that in comparing performance against the targeted performance goals, the Compensation Committee shall adjust performance targets to mitigate the unbudgeted impact of material, unusual, or nonrecurring gains and losses, accounting changes, the effect of foreign currency translation, or other extraordinary events, unless the Committee provides otherwise at the time of establishing the targets. In addition, in measuring Adjusted EBITDA, the Committee excludes the impact of non-cash equity-based compensation. Adjusted return on invested capital is calculated as the trailing twelve months of after-tax operating income divided by the five quarter average of invested capital. Invested capital equals debt plus shareholders’ equity minus cash. In setting the 2024 baseline for the performance stock unit grants, in addition to excluding non-cash equity compensation from Adjusted EBITDA, the Committee removed the impact of costs associated with the Portfolio Optimization Plan from both metrics. |

The following table shows the performance metrics and weighting that the Compensation Committee set for our 2021 performance stock units, which were eligible for vesting following the end of the performance period on December 31, 2024, and our degree of attainment of these goals:

| Three-Year                          
 Performance Goal                    |                                                             |     | 2022-2024 Target(1)and                                                       
 Percentage of Performance Goal Earned                                        |     | 2022-2024            
 Calculation(2)       |     | Percentage 
 Weight of  
 PSU Award  
 Formula    |
| Adjusted EBITDA growth              |                                                             |     | Less than -3% Compound Annual Growth Rate (CAGR) on 2021 EBITDA minimum, 0%; |     | $282.3 million       
 (5.3% CAGR increase) |     | 70%        |
|                                     | 3% CAGR on 2021 EBITDA target, 100%;                        |     |                                                                              |     |                      |     |            |
|                                     | 8% or more CAGR on 202