Company: MRCY
Filing Date: 2025-09-10
Form Type: DEF 14A
Source: 0001049521-25-000029
Chunk: 55

Company: MERCURY SYSTEMS INC
Filing Date: 2025-09-10
Form: DEF 14A
Chunk 55
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 pre-established targets.

With respect to our annual incentive plan, our overall financial performance achievements for fiscal 2025 exceeded plan targets, which are based on adjusted EBITDA, adjusted free cash flow and organic revenue. Accordingly, aggregate plan payouts to our named executive officers for fiscal 2025 represented 113.2% of their respective target bonuses. For a further discussion, see "– Elements of Fiscal 2025 Target Pay – Annual Incentives."

We did not make any payouts to our named executive officers under long-term performance awards with performance periods ending in fiscal 2025, as none of our named executive officers previously received grants of long-term performance awards that would have provided for such payouts in this time frame.

SHAREHOLDER ENGAGEMENT AND 2024 ADVISORY "SAY-ON-PAY" VOTE ON EXECUTIVE COMPENSATION

In 2024, we continued our practice of extensive annual engagement efforts with shareholders on our executive compensation program, as well as other matters including strategy, Board composition, and environmental, social and governance matters. We invited 19 of our largest shareholders representing approximately 79% of our outstanding shares to engage with us prior to the filing of our 2024 proxy statement, and held meetings with shareholders who responded. We engaged in a similar outreach program after filing our 2024 proxy statement and prior to our 2024 annual meeting. Ultimately, we met with eight institutions representing a majority of our outstanding shares as of the record date for the 2024 annual meeting. Our discussions generally focused on the selection process for our newly appointed CEO, Mr. Ballhaus and the one-time, new-hire awards intended to foster his strong alignment with shareholder value creation. These meetings were led by Barry Nearhos, our Lead Independent Director, Howard Lance, our Human Capital and Compensation Committee Chair, and Scott Ostfeld, a member of our Human Capital and Compensation Committee. At our 2024 annual shareholders meeting, we received the support of 71% of the votes cast on our Say-on-Pay proposal, including seven of the eight institutions who engaged with us.

During 2025, we continued our annual shareholder engagement efforts through investor relations- and stewardship team-based invitations to our largest shareholders representing a substantial majority of our outstanding shares as of the record date of our 2025 annual meeting. We will continue to engage with our shareholders on an ongoing basis and consider their feedback when making future decisions about our executive compensation programs.

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