Company: AAOI
Filing Date: 2025-03-10
Form Type: DEF 14A
Source: 0001104659-25-022149
Chunk: 34

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-03-10
Form: DEF 14A
Chunk 34
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851 | ​ | ​ | ​ | ​ | ​                | $ | 381,753 | ​ | ​ | ​ | ​ | ​        | ​ | 12% | ​ | ​ | ​ |
| ​ | ​ | Shu-Hua (Joshua) Yeh       | ​ | ​ | ​ | ​                | $ | 344,850 | ​ | ​ | ​ | ​ | ​                | $ | 340,310 | ​ | ​ | ​ | ​ | ​        | ​ | 7%  | ​ | ​ | ​ |
| ​ | ​ | David C. Kuo               | ​ | ​ | ​ | ​                | $ | 259,926 | ​ | ​ | ​ | ​ | ​                | $ | 291,117 | ​ | ​ | ​ | ​ | ​        | ​ | 12% | ​ | ​ | ​ |

The preceding table shows the base salary changes that went into effect on March 1, 2024. Amounts for Mr. Yeh are paid in NTD (New Taiwan dollar) and RMB (Chinese Yuan Renminbi) but are disclosed in USD (United States dollar) based on the exchange rate in effect on December 31, 2024, and reflect the effect of fluctuations in the applicable exchange rates over time. The actual base salary amounts paid to our NEOs in 2024 are set forth in the “2024 Summary Compensation Table” below. 2024 Annual Cash Bonuses We use annual cash incentive opportunities to attract and retain our executive officers consistent with market practice, to reward our executive officers for achievement of our corporate objectives, and to recognize outstanding contributions. 2024 Target Annual Cash Bonus Opportunities In 2023, the compensation committee reduced target bonus opportunities as a percent of salary by approximately 8% due to the Company’s financial situation at that time. In establishing the target annual cash bonus opportunities for 2024, the compensation committee considered the market information provided by Aon as well as the Company’s financial situation and opportunities, in order to allow the Company to provide an adequate incentive to retain our critical leadership and align pay with performance. In light of these considerations and in positioning the cash bonuses for the executives closely to the 50 th percentile compared to the 2024 Peer Group, the compensation committee went

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back to prior target percentages for the 2024 annual cash bonus as compared to 2023 to provide our NEOs with an