Company: PTC
Filing Date: 2025-01-02
Form Type: DEF 14A
Source: 0001104659-25-000041
Chunk: 21

Company: PTC INC.
Filing Date: 2025-01-02
Form: DEF 14A
Chunk 21
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 Growth | ​ |

**FY2024 ANNUAL CORPORATE INCENTIVE PLAN DESIGN AND ACHIEVEMENT**

| ​ | Performance Measure | ​ | ​ | ​ | Threshold(50% Earned) | ​ | ​ | ​ | Target(100% Earned) | ​ | ​ | ​ | Upside(Cap 135%) | ​ | ​ | ​ | Achievement  | ​ | ​ | ​ | Earned | ​ |
| ​ | Free Cash Flow(1)   | ​ | ​ | ​ | $670 Million          | ​ | ​ | ​ | $710 Million        | ​ | ​ | ​ | $730 Million     | ​ | ​ | ​ | $736 Million | ​ | ​ | ​ | 135%   | ​ |

**(1) Free Cash Flow is cash flow from operations net of capital expenditures for the applicable period. The Free Cash Flow growth targets were developed in the context of our financial operating plan and targets for FY2024, with the Target representing an increase of 21% in Free Cash Flow over FY2023. FY2024 Free Cash Flow consisted of $750 million of cash from operations net of $14 million of capital expenditures. LONG-TERM PERFORMANCE-BASED EQUITY Long-term performance-based RSUs are a significant component of our executives’ compensation and focus our executives on long-term value creation. RSUs not earned for a performance period are forfeited. As our operating performance-based RSUs have annual performance periods and vesting opportunities, one-third of such RSUs granted in FY2022, FY2023 and FY2024 were eligible to be earned and vest for FY2024. For awards made in FY2024, we changed the comparison group for measuring relative TSR performance under the relative TSR RSUs. For awards made in FY2022 and FY2023, we used the S&P 500 Software and Services Index, plus compensation peers. For FY2024, due to a significant realignment of the S&P 500 Software and Services Index in March 2023, which removed many constituent companies and significantly decreased the number of comparative companies, the Compensation and People Committee considered a number of alternative comparative company group options. The Committee ultimately decided to use a custom group of S&P Software & Services companies with market capitalizations of more than $5 Billion plus the company’s compensation peer group companies as the comparative group due to its reasonable sample size, industry relevance, and strong stock price movement correlation with PTC. FY2024 PERFORMANCE-B