Company: TDY
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001193125-25-054478
Chunk: 55

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 55
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yne’s achievement of certain financial performance goals, with a smaller portion tied to the achievement of pre-establishedindividual goals. For 2024, 40% of AIP awards were tied to the achievement of predetermined levels of adjusted income before taxes, 25% to the achievement of predetermined levels of adjusted revenue, 15% to the achievement of predetermined levels of managed working capital as a percentage of revenue and 20% to the achievement of specified individual performance objectives. These predetermined levels may vary by business unit. In addition, per the Committee’s policy, downward (but not upward) discretionary adjustments are allowed with respect to AIP awards granted to NEOs. See “2024 Compensation Decisions for Named Executive Officers” beginning on page 51 for details of the 2024 AIP awards paid to each of our NEOs. Long-Term Incentive Compensation The Company grants long-term incentive compensation to reward long-term performance and align the interests of key employees, including the NEOs, with Company stockholders. Long-term incentive compensation consists of three components: stock options, a three-year cash-based Performance Plan and a performance-based restricted stock unit award program. We believe that the incentives provided by our long-term incentive compensation programs are consistent with our compensation goals of employee retention, rewarding executives for long-term operating performance and incentivizing executives for long-term increases in our stock price, both in absolute terms and as compared to the broader market. We believe the three-year vesting or performance period of our long-term incentive compensation awards is consistent with market practice and our overall compensation objectives. Stock Options.Stock options provide our employees, including NEOs, with the opportunity to participate in stockholder value created as a result of stock price appreciation, which furthers our objective of aligning the interests of management with the interests of our stockholders. All stock options granted are non-qualifiedstock options, vest ratably at a rate of one-thirdper year from the date of grant and have a term of ten years. A description of the treatment of stock options upon termination of employment can be found under the heading “ Potential Payments Upon Termination or a Change in Control” on page 78 of this Proxy Statement. Performance Plan.Performance Plan awards are scalable and are intended to reward NEOs to the extent we achieve specific pre-establishedfinancial performance goals and achieve certain levels of long-term return to stockholders relative to a broader market index. Forty percent of the award is based on the achievement of specified levels of adjusted income before taxes (aggregated over three years),