Company: HCKT
Filing Date: 2025-03-21
Form Type: DEF 14A
Source: 0000950170-25-043233
Chunk: 55

Company: HACKETT GROUP, INC.
Filing Date: 2025-03-21
Form: DEF 14A
Chunk 55
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 in any given year. There are typically three levels of performance achievement for the Company's annual equity incentive programs: “Commence,” “Goal” and “Superior.” Performance-based incentive awards earned (calculated in U.S. Dollars) are divided by the Company’s share price on the date of grant to calculate the equity incentive grant in the form of restricted stock units. Therefore, as the share price increases, the number of restricted stock units issued decreases and vice versa. If Company performance falls short of the Board’s goals for the business, then the bonus compensation paid in connection with these programs is reduced or eliminated. In addition to the programs described above, beginning in 2020, approximately 14 of the Company’s senior leaders, excluding its CEO and COO, participate in a program that vests a portion of the program participant’s annual equity opportunity after the conclusion of the current compensation year subject to the achievement of a minimum level of Company profitability and the achievement of personal management objectives established for each individual.

In September 2024, the Compensation Committee approved the Stock Price Award Program which included a one-time grant of performance-based restricted stock unit awards to the Company’s named executive officers, and eight other employees, under the Plan. The Stock Price Award Program is designed to incentivize long-term out-performance of the Company’s stock price, aligning the executives’ interests with those of the Company’s stockholders while the Company undergoes a transformation to expand its Gen AI. In connection with the Stock Price Award Program, the annual equity incentive award opportunities for the named executive officers during the performance period of the Stock Price Award Program will be reduced by 50%, as compared to the annual equity incentive award opportunities in the Company’s executive compensation program for 2024 for compensation years 2025 through 2028 even if the performance hurdles are achieved earlier than that.

The Stock Price Awards are eligible to become earned based on achievement of three significant stock price hurdles over a performance period from the date of grant through December 31, 2028 and are conditioned upon satisfaction of time-based vesting conditions. The volume weighted average price per share of the Company’s common stock over any 20 consecutive trading days during the performance period must exceed the applicable stock price hurdle in order for the stock price hurdle to be considered achieved. Notwithstanding the date of achievement of the stock price hurdles during the performance period, the Stock Price Awards subject to the first, second and third stock price hurdles may not vest until the first, second and third anniversary of the grant date, respectively,