Company: HCKT
Filing Date: 2025-03-21
Form Type: DEF 14A
Source: 0000950170-25-043233
Chunk: 33

Company: HACKETT GROUP, INC.
Filing Date: 2025-03-21
Form: DEF 14A
Chunk 33
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 A, “Reconciliation of Reported (GAAP) to Adjusted (Non-GAAP) Results” for a reconciliation of adjusted results, including adjusted diluted earnings per share, to reported GAAP results for 2024).

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The Company ACV growth rate achieved resulted in performance-based equity bonuses above the Commence target but below the Goal target contained in the ACV program.

The $30 share price hurdle associated with the Stock Price Awards was achieved in the fourth quarter of 2024. One third of the Stock Price Awards issued to Messrs. Fernandez, Dungan and Ramirez will vest in September of 2025.

Executive Compensation Decisions for 2025

At meetings held in February 2025, the Compensation Committee reviewed and approved the 2025 base salaries and cash and equity incentive plan targets for the Company’s named executive officers, as well as for the Company’s other senior leaders. Consistent with prior years, the Compensation Committee specifically approved a program for its named executive officers that, in addition to base salaries, would pay annual cash and equity incentive bonuses in connection with the achievement of specified 2025 performance targets. The Compensation Committee chose to retain annual adjusted diluted net earnings per share as the performance target in 2025. The ACV program was discontinued for 2025.

The Company’s Compensation Committee has once again established challenging performance targets for 2025. The Compensation Committee set the annual “Commence,” “Goal” and “Superior” targets from 80%, 110% and 115% of 2024 adjusted diluted earnings per share of $1.61, which excludes the impact of the overperformance from the Company’s SAP Solutions segment's software-related sales in the fourth quarter of 2024, which are not expected to be repeated. The non-equity (cash) and equity bonus incentive opportunities for the Company's named executive officers at the Commence, Goal and Superior target levels for 2025, as a percentage of base salary, remains the same as in 2025.

For 2025, Mr. Ramirez will also participate in the Company's senior leadership equity program whereby an annual equity opportunity is subject to the achievement of personal management objectives approved by the Compensation Committee.

Timing of Equity Incentive Plan Awards and Discretionary Equity Awards

The Company does not have a program, policy, plan or practice to time equity awards, including option grants, to its named executive officers or directors in coordination with the release of material non-public information.