Company: OSIS
Filing Date: 2025-10-22
Form Type: DEF 14A
Source: 0001104659-25-101517
Chunk: 30

Company: OSI SYSTEMS INC
Filing Date: 2025-10-22
Form: DEF 14A
Chunk 30
---
 performance of the Optoelectronics and Manufacturing division. For fiscal year 2025, Mr. Morben was awarded a cash bonus of $83,214, which is set forth in the “Bonus” column of the Summary Compensation Table. Long-Term Incentive Program In order to further promote our philosophy of pay-for-performance and furthering our objective of aligning our executive compensation with our long-term financial goals and factors that create long-term stockholder value as well as incentivizing the desired individual performance of each Named Executive Officer, we have a long-term incentive program. Except for one time-based RSU grant to Mr. Mansouri because of his impending retirement, the grants to our Named Executive Officers during fiscal 2025 were performance-based in their entirety. The Compensation Committee believes that this vesting structure provides an incentive for our Named Executive Officers to remain with the Company and also focus the Named Executive Officers on consistently achieving corporate performance and business objectives for the benefit of our stockholders.

OSI SYSTEMS, INC. 2025 Proxy Statement | 35

TABLE OF CONTENTS Executive Compensation

Our overall long-term incentive program is designed to retain our Named Executive Officers and to align the interests of our Named Executive Officers with the long-term interests of our stockholders, namely the achievement of sustainable, long-term stock price appreciation. All equity awards are made at fair market value on the date of grant (which is the date on which the Compensation Committee authorizes the grant). Under our equity incentive plan as in effect on the date of grant, fair market value is determined by the closing price of our Common Stock on such dates. The Compensation Committee has established a three-year program for long-term performance-based incentive grants to our Named Executive Officers. The program provides for yearly initial grants of RSUs. Each award is 100% performance based and vests based on the level of performance achieved for the following metrics: compound annual revenue growth and compound annual operating income growth. The Compensation Committee considers compound annual growth revenue and operating income metrics to be effective long-term performance measures for assessing the Company’s performance over multiple years. The targets are designed to be challenging yet achievable with significant effort and management skill, incentivizing management to create long-term stockholder value while at the same time ensuring appropriate risk management. Revenue and operating income figures are as reported in accordance with GAAP in our annual report on Form 10-K. Compound annual growth rate is measured as compared to our fiscal year 2023 as-reported figures. As described below, the majority of the shares that can