Company: ZEUS
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001437749-25-009843
Chunk: 22

Company: OLYMPIC STEEL INC
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 22
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 increased from $675,000 to $775,000 on April 29, 2024, based on market data provided by our compensation consultant for similar positions. Prior to 2024, base salaries for our named executive officers were reviewed periodically, rather than annually. Prior to the increase noted above, employment contracts for Mr. Marabito and Mr. Greiff resulted in no increases since 2019 and 2020, respectively. The Compensation Committee believes that the salaries of each of our named executive officers are reasonable when measured against the range of base salaries offered by other companies.

Annual Cash Incentive Compensation. We believe that a significant portion of the compensation paid to our named executive officers should be based on our annual performance so that the executives are appropriately motivated to maximize our operating performance each year. We have established our Senior Manager Cash Incentive Plan to provide our executives, including our named executive officers, with the opportunity to earn an annual cash incentive payout. Additionally, the incentive plan has been designed to pay out a higher mix of cash compensation because the Company cannot grant equity awards at a rate comparable to its peer group as described above.

The Senior Manager Cash Incentive Plan was implemented to emphasize EBITDA, excluding the impact of any LIFO inventory adjustment. Cash incentives are only earned if EBITDA exceeds 5% of average annual accounts receivable, inventory and fixed assets, and payouts of cash incentives under the Senior Manager Cash Incentive Plan are capped at $3,000,000 per participant per year. The annual cash incentive award opportunity for each of our C-suite executives, which includes our Chief Executive Officer, President and Chief Operating Officer, and Chief Financial Officer, is determined by dividing the individual’s base salary by the targeted EBITDA. The targeted EBITDA for 2024 was $85 million and for 2023 was $65 million. The 2024 EBITDA target was adjusted to include EBITDA from recent acquisitions. In 2023, the annual cash incentive award opportunities for each of the C-suite executives, were based on adjusted EBITDA (which excluded EBITDA generated by Metal-Fab, including acquisition related expenses). For 2024, the Compensation Committee granted an annual cash incentive award opportunity for Mr. Marabito of 1.15% of EBITDA, Mr. Greiff of 0.86% of EBITDA, Mr. Manson of 0.65% of EBITDA and Ms. Christen of 0.