Company: PENG
Filing Date: 2025-12-19
Form Type: DEF 14A
Source: 0001616533-25-000073
Chunk: 62

Company: Penguin Solutions, Inc.
Filing Date: 2025-12-19
Form: DEF 14A
Chunk 62
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 Factor would be increased according to the graph below, up to a maximum of 200%. Conversely, for every percentage point below 100% attainment, the Financial Performance Factor would be decreased according to the graph below, with the Financial Performance Factor reduced to 0% at below 80% attainment.

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The performance targets were designed to be challenging but achievable based on economic and market conditions at the time when the fiscal 2025 AOP was approved. Payouts at the maximum levels, however, were intended to be stretch goals.

Individual Performance Factor . The Compensation Committee determined each NEO’s Individual Performance Factor based on two areas of achievement, executive leadership (weighted 60%) and human capital and environmental stewardship (weighted 40%). For executive leadership, the CEO evaluated each NEO’s individual performance, taking into account accomplishments, areas of strength, and opportunities for development as considered against executive leadership goals established early in the fiscal year. The CEO based this evaluation on his knowledge of each NEO’s performance and the individual’s self-assessment. The Board and the Compensation Committee assessed the individual performance of the CEO. For evaluation of human capital and environmental stewardship, the CEO evaluated the NEOs’ progress on qualitative and quantitative goals, such as progress toward achieving a total of net zero Scope 1 and Scope 2 carbon emissions across all lines of business by 2030. The Committee also noted the NEOs’ support of enhanced employee engagement initiatives, a sustained focus on reduced water consumption, and efforts to improve our energy efficiency. For fiscal 2025, the Individual Performance Factor may not exceed (a) 100%, if the Financial Performance Factor percentage (after accelerator/decelerator) is 100% or less, or (b) the Financial Performance Factor percentage (after accelerator/decelerator), if such percentage is greater than 100%.

These evaluations were shared with the Compensation Committee and informed the CEO’s recommendations for any upward or downward adjustments to compensation and the actual payout amount of the short-term cash incentive. For fiscal 2025, after considering each NEO’s individual performance, achievement against each NEO’s fiscal 2025 leadership goals, and the Company’s overall performance in fiscal 2025, the CEO recommended and the Compensation Committee approved (and for the CEO, the Compensation Committee approved) the respective Individual Performance Factor percentages set forth in “ Fiscal 2025 Target and Payout Amounts for Then-Serving NEOs ” below.

Bonus Calculation Diagram

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Calc