Company: LGIH
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001580670-25-000028
Chunk: 48

Company: LGI Homes, Inc.
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 48
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### COMPENSATION DISCUSSION AND ANALYSIS
In this Compensation Discussion and Analysis (“CD&A”), we provide an overview of our executive compensation program and describe the material components of our executive compensation program for our 2024 NEOs, whose compensation is set forth in the Summary Executive Compensation Table and other compensation tables contained in this Proxy Statement. Our 2024 NEOs were:

• Eric Lipar, Chief Executive Officer and Chairman of the Board

• Michael Snider, President and Chief Operating Officer

• Charles Merdian, Chief Financial Officer and Treasurer

• Scott Garber, General Counsel and Corporate Secretary

### EXECUTIVE SUMMARY
Due to our culture, customer-centric sales and marketing system, and our systems and processes, we are one of America’s largest home builders and land developers. We provide move-in-ready homes to primarily entry-level homebuyers and have expanded our footprint from 25 active communities in four states as of our initial public offering in November 2013 to 151 active communities in 21 states as of December 31, 2024. Our long-term success depends on our ability to attract, engage, incentivize and retain highly talented individuals who are committed to our systems-based strategy.

Our executive compensation program links the pay of each NEO to such NEO’s performance and advancement of LGI’s overall annual and long-term performance and business strategies.

Other objectives of our executive compensation program include aligning the interests of our NEOs with those of our stockholders and encouraging high-performing NEOs to remain with LGI over the course of their careers. We believe that LGI’s executive compensation program is effectively attracting executive talent, as well as rewarding performance and promoting retention. We also believe that the amount of compensation paid to each NEO reflects the depth of their experience, quality of their performance and level of service to LGI and our stockholders.

### 2024 Business Highlights
As discussed further in our 2024 Annual Report, we continued to execute on our business model during 2024, resulting in increased growth in our existing markets, geographically diversifying our revenue base, adding additional price points and wholesale closings in certain markets, and executing on our land acquisition and development strategy.

We continued to achieve strong operating results generating more than 11% pre-tax net income as a percentage of revenues in 2024. Revenues remained strong in 2024 due to increased average home sales price although closings were slightly decreased. We maintained our near industry leading gross margins while expanding in our