Company: ICUI
Filing Date: 2025-04-03
Form Type: DEF 14A
Source: 0000883984-25-000010
Chunk: 17

Company: ICU MEDICAL INC/DE
Filing Date: 2025-04-03
Form: DEF 14A
Chunk 17
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 represents operating cash flow adjusted for certain items as described in Annex A to this proxy statement. Our reconciliation of net cash provided by operating activities to free cash flow is contained in Annex A to this proxy statement.

#### 2024 Executive

#### Compensation Highlights
Compensation Philosophy

“Pay for performance” is the underlying tenet of our compensation philosophy. Consistent with this focus, our 2024 executive compensation program includes annual performance-based cash bonuses and long-term incentive compensation, primarily in the form of performance-based restricted stock unit (“PRSU”) awards, that are earned and vest based on continued service and satisfactory achievement of applicable preestablished performance goals. We emphasize long-term incentive compensation opportunities relative to short-term incentive opportunities in order to motivate our executive officers to focus on long-term value creation and accordingly have under-weighted both base salary and annual target bonus compensation relative to equity-based compensation as components of our annual target total direct compensation. Additionally, our executive compensation program is designed so that a significant portion of compensation is “at risk” based on Company performance, including short-term cash and long-term equity incentives, which also align the interests of our executive officers and stockholders.

For 2024, on average, approximately 86% of our named executive officers’ annual target total direct compensation opportunity consisted of “variable” pay (assuming the payout at “target” performance of annual cash bonuses and performance-based RSU awards) and included the following elements:

• Performance-based cash . Our named executive officers participate in an annual cash bonus program which provides for payouts ranging from 0% to 150% of their target annual bonus opportunity based upon satisfactory achievement of preestablished financial performance goals, and the Compensation Committee reserves discretion to adjust bonuses up or down based on each named executive officer's individual performance as evaluated against preestablished individual performance goals in determining actual bonus payouts.

• Multi-year Performance-based RSU awards . The performance-based RSU (“PRSU”) awards granted to our named executive officers are earned and cliff-vest only upon achievement of performance goals over a two-year performance period which is based on the satisfactory achievement of a minimum two-year cumulative Adjusted EBITDA target. These PRSU awards recognize contributions to our long-term success, align our executive officers' compensation with Company performance and allow us to retain key employees through long-term vesting and potential wealth creation.

• Time-based RSU awards . The time-based RSUs awards granted to our named executive officers other than our CEO, COO and CFO balance our pay-for-performance philosophy with our retention