Company: HGBL
Filing Date: 2025-04-22
Form Type: DEF 14A
Source: 0000950170-25-056713
Chunk: 27

Company: Heritage Global Inc.
Filing Date: 2025-04-22
Form: DEF 14A
Chunk 27
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 each calendar year in an amount equal to 12% of the net operating income of the Financial Assets Division, subject to adjustment as set forth in Mr. Ludwig’s employment agreement. For 2024, Mr. Ludwig earned a cash bonus pursuant to this arrangement of $1,045,593.

Mr. Nicholas Dove is eligible to receive a performance incentive under the terms of his Employment Agreement, effective on January 1, 2023. Mr. Dove’s employment agreement provides that Mr. Dove is entitled to receive a bonus each calendar year in an amount equal to 10% of the net operating income of the Industrial Assets Division of the Company, subject to adjustment as set forth in Mr. Dove’s employment agreement. For 2024, Mr. Dove earned a cash bonus pursuant to this arrangement of $319,222.

As Mr. Ross Dove’s, Mr. David Ludwig’s and Mr. Nicholas Dove’s performance based awards are closely tied to our profitability, we believe the bonus structure does not encourage inappropriate risk-taking on their part.

Equity Incentive Grants and Related Policies and Practices

In keeping with our philosophy of providing a total compensation package that favors at-risk components of pay, long-term incentives can comprise a significant component of our executives’ total compensation package. These incentives are designed to motivate and reward executives for maximizing shareholder value and encourage the long-term employment of key employees. Our objective is to provide executives with above-average, long-term incentive award opportunities.

In years prior to 2022 we used grants of stock options as the predominant form of stock-based compensation. Since 2022, we have used restricted stock awards as the predominant form of stock-based compensation. Stock options generally are granted at the prevailing market price on the date of grant and will have value only if our stock price increases. Grants of stock options and restricted stock awards are generally based upon our performance, the level of the executive’s position, and an evaluation of the executive’s past and expected future performance. These equity grants are made to executives and directors annually, typically at a regularly scheduled meeting of the Compensation Committee in March. Meeting dates are set in advance, and the timing of the meetings, and the grant of stock options, including terms and value of the awards, is made without regard to any material nonpublic information. We do not time or plan the release of material, non-public information for the purpose of affecting the value of executive compensation.

In 2022, at the Company's 2022 Annual Meeting of Shareholders, the Company's shareholders approved