Company: TR
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001558370-25-003853
Chunk: 16

Company: TOOTSIE ROLL INDUSTRIES INC
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 16
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 paid. The committee uses its discretion rather than predetermined targets to determine the level of performance achieved for each named executive officer based on its consideration and assessment of the following factors:

| ● | Net earnings and earnings per share; |

| ● | Increase in sales of core brands and total sales; |

| ● | Net earnings as a percentage of sales; |

| ● | Performance in accomplishing cost savings and operational improvements; |

| ● | Performance in accomplishing and integrating successful acquisitions; |

| ● | The amount of other compensation awarded under the Company’s other plans; and |

| ● | Other strategic objectives that may be determined from time to time in the sole discretion of the Compensation Committee and/or the Board of Directors. |

Consistent with prior practice, the Committee used its discretion in determining the bonus payments set forth in the Summary Compensation Table. As per the terms of the Company’s Management Incentive Plan effective January 1, 2023, "Net Earnings" is defined as the Company’s earnings from continuing operations after taxes excluding (i) extraordinary items under generally accepted accounting principles (“GAAP”), (ii) restructuring and/or other nonrecurring charges; (iii) exchange rate effects, as applicable, for non-U.S. dollar denominated operating earnings; (iv) the effects of changes to GAAP required by the Financial Accounting Standards Board; (v) the effects to any statutory adjustments to corporate tax rates; and (vi) any other unusual, non-recurring gain or loss or other extraordinary item. Excluding a non-recurring, non-cash charge related to the write-off of a deferred tax asset, the Company’s 2024 net earnings were $97,837,000 and earnings per share were $1.37. Net product sales were $715,530,000. Net earnings as a percent of net product sales were 13.7%. Of the foregoing, net earnings and earnings per share, which increased 6.4% and 7.0%, respectively, over the prior year were the predominant factors considered by the committee in determining bonus awards for each named executive officer. As salaries for all named executive officers have been limited to $999,000 as noted above, greater amounts of the compensation package have been allocated the MIP, CAP or both. Supplemental Discretionary Bonus for the Chief Executive Officer As discussed further below, the Chief Executive Officer did not participate in either the Career Achievement Plan (“CAP”) or the Excess Benefit Plan (“EBP”) during fiscal year 202