Company: NSSC
Filing Date: 2025-10-24
Form Type: DEF 14A
Source: 0001140361-25-039260
Chunk: 12

Company: NAPCO SECURITY TECHNOLOGIES, INC
Filing Date: 2025-10-24
Form: DEF 14A
Chunk 12
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 June 2024. Previously, Mr. Vuono was a partner with Baker Tilly US, LLP since September 1989.                                                 |

10

COMPENSATION DISCUSSION & ANALYSIS This Compensation Discussion and Analysis explains the objectives, strategy and features of our executive compensation program and it describes how the compensation of our executive officers aligns with our corporate objectives and shareholder interests. Compensation Program Objective The objective of our executive compensation program is to allow us to successfully retain and motivate executives who enable us to achieve short-term and long-term growth and operational excellence. Oversight of Our Executive Compensation Program The Compensation Committee of the Board of Directors (the “Committee”) assists the Board in discharging its responsibilities relating to compensation of the Chief Executive Officer and other executive officers and oversees the executive compensation program. All of the members of the Compensation Committee have been determined to be independent under applicable NASDAQ and SEC rules. The Committee’s responsibilities are detailed in its charter, which can be found at www.napcosecurity.com/investors/corporategovernance. The Company’s CEO participates in the Compensation Committee’s meetings and provides input into compensation decisions at the Compensation Committee’s request. In particular, the Company’s CEO participates by making recommendations on named executive officers (NEO or NEOs) compensation and input on objectives (other than for himself). The CEO’s compensation is determined solely by the Compensation Committee. The Committee’s process includes executive sessions where the Committee meets alone, without the presence of management. The Use of Compensation Survey Data and Peer Companies During FY 2025, the Compensation Committee did not conduct any formal competitive pay benchmarking. Instead, the competitiveness of the pay offered to the executive officer was based on existing employment agreements and compensation packages, the recommendations of the Chief Executive Officer, and the business experience of members of the Compensation Committee. Components of the Executive Compensation Program-Description of Elements and Evaluation Process The named executive officers, including our Chief Executive Officer, have a compensation program that includes the following components:

| • | Base salary |

| • | Annual incentives |

| • | Long-term incentives in the form of stock options awards |

| • | Employee benefits |

| • | Perquisites |

Compensation Mix. We do not have policies that define specific percentage allocations for fixed and variable compensation, or cash and non-cash compensation. We do, however, intend to deliver a portion of total compensation in the form of performance-based cash incentives and in awards of stock options, to achieve our objective of offering rewards for successful business results and shareholder value creation