Company: LPX
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001104659-25-028584
Chunk: 49

Company: LOUISIANA-PACIFIC CORP
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 49
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Annual Cash Incentive Plan LP’s 2024 Annual Incentive Plan metrics included corporate financial performance goals and business unit financial performance goals, as further described below. No amounts would have been payable under the 2024 Annual Incentive Plan unless the threshold level for at least one performance goal was achieved, and awards are paid only if the NEO remains in continuous employment through the payment date, subject to acceleration upon certain events. The Compensation Committee has the authority, in its sole discretion, to reduce or eliminate the payout of annual cash incentive awards under the 2024 Annual Incentive Plan, despite its determination that performance was at or above the threshold level, if it finds that paying the original payout amount of the awards is not in the best interests of LP.

LOUISIANA-PACIFIC CORPORATION ● 2025 PROXY STATEMENT | 48

TABLE OF CONTENTS COMPENSATION OF EXECUTIVE OFFICERS

Corporate Financial Performance Goals The 2024 Annual Incentive Plan performance metrics included an Adjusted EBITDA goal (adjusted for certain market influences related to OSB commodities) and an Economic Profit goal. Adjusted EBITDA is a non-GAAP financial measure and is defined as income attributed to LP from continuing operations before interest expense, provision for income taxes, depreciation and amortization, and excludes stock-based compensation expense, loss on impairment attributed to LP, product-line discontinuance charges, business exit charges, other operating credits and charges, net loss on early debt extinguishment, investment income, pension settlement charges, and other non-operating items. Economic Profit is defined as income from operations, less tax, and further reduced by a capital charge (based on average invested capital multiplied by weighted-average cost of capital). As adjusted for certain market influences related to OSB commodities, the Adjusted EBITDA performance goal for the year ended December 31, 2024 had a threshold level of $412 million and a target level of $527 million, with maximum payment achieved at $630 million. LP’s reported Adjusted EBITDA of $688 million for the year ended December 31, 2024 exceeded the target maximum level under the 2024 Annual Incentive Plan. LP’s Economic Profit performance goal for the year ended December 31, 2024 had a threshold level of $33 million and a target level of $119 million, with maximum payment achieved at $197 million. LP’s Economic Profit of $239 million for the year ended December 31, 2024