Company: IRDM
Filing Date: 2025-03-17
Form Type: PRE 14A
Source: 0001628280-25-013200
Chunk: 92

Company: Iridium Communications Inc.
Filing Date: 2025-03-17
Form: PRE 14A
Chunk 92
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 the target award dollar value, which is then converted into a number of shares underlying the RSUs based on the closing price of our common stock on the date of grant. The number of shares ultimately earned and vested under the award is determined based on achievement of performance goals over a two-year performance period, with one-half of any earned shares vesting upon certification of achievement and the remainder continuing to be subject to service-based vesting through the third anniversary of the award’s grant date. The Compensation Committee sets the performance goals to be achievable, but only with significant effort by our executive officers.

The Compensation Committee determined an aggregate target award size for each executive in 2024 based principally on (1) the peer data provided by ClearBridge, (2) our internal equity budget for grants for 2024, (3) internal pay equity and individual performance, (4) the recommendations of our chief executive officer and (5) retention of individual executives. In determining these aggregate target award sizes, the Compensation Committee also took into consideration the significant achievements of the executive team during 2023, which included, among other things, (1) generating record total revenue of $790.7 million, a 10% year-over-year increase, and operational EBITDA of $463.1 million, a 9% year-over-year increase, (2) ending the year with 2,279,000 worldwide subscribers, a 14% year-over-year increase, which was driven by growth in commercial IoT, and (3) return of capital to stockholders, including the repurchase of $245.6 million of our common stock and payment of $64.8 million in dividends during 2023.

Based on the recommendations of ClearBridge, the Compensation Committee allocated 50% of the target dollar value of each award in the form of RSUs subject to a service-based three-year vesting schedule, and 50% in the form of performance-based RSUs. The Compensation Committee determined that this mix of service-based and performance-based RSUs for 2024 was appropriate to promote our retention, motivation and stockholder alignment goals.

2024 Service-Based RSU Grants . As described above, the Compensation Committee approved the March 1, 2024 grant of RSUs to each of our executive officers that would be subject to vesting based on continued service over three years, with 34% vesting on March 1, 2025, and the remainder vesting thereafter in eight equal quarterly installments. The vesting of these awards is