Company: COHU
Filing Date: 2025-04-02
Form Type: DEF 14A
Source: 0001437749-25-010672
Chunk: 29

Company: COHU INC
Filing Date: 2025-04-02
Form: DEF 14A
Chunk 29
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 executive officers; |

| • | Motivate these individuals to achieve our short-term and long-term corporate goals that enhance stockholder value; and |

| • | Support our core values and culture by promoting internal equity and external competitiveness. |

To meet these objectives, we have adopted the following overarching policies:

| • | We pay compensation that is competitive with the practices of other leading semiconductor equipment and similar technology companies; and |

| • | We pay for performance by: |

| - | Providing a short-term incentive compensation opportunity paid in cash that is based on challenging financial performance objectives for our executive officers; and |

| - | Providing long-term incentive compensation opportunities in the form of a combination of RSU awards and PSU awards, that enable us to motivate and retain those executive officers with the leadership abilities necessary to create sustainable long-term value for our stockholders. |

These policies guide the Compensation Committee in determining the proper allocation between current cash compensation and short-term and long-term incentive compensation. Other considerations include our business objectives, our fiduciary and corporate responsibilities (including internal equity considerations and affordability), competitive practices and trends, and applicable regulatory requirements.

Compensation-Setting Process

Role of the Compensation Committee

Our executive compensation program is designed and overseen by the Compensation Committee, which is comprised entirely of independent directors, as determined in accordance with the rules of the SEC and the listing standards of the Nasdaq. The Compensation Committee conducts an annual review of our executive compensation strategy to ensure that it is appropriately aligned with our short-term business plan and long-term strategy. The Compensation Committee also reviews market trends and changes in competitive compensation practices, as described in further detail below. Based on its review and assessment, the Compensation Committee from time to time recommends changes in our executive compensation program.

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The Compensation Committee reviews our executive compensation program on an annual basis, including each of the elements of compensation provided under the program (other than deferred compensation and Section 401(k) benefits, which are reviewed from time to time to ensure that benefit levels remain competitive). In determining the overall compensation arrangements for our executive officers, including our NEOs, as well as the level of each specific element of compensation, the Compensation Committee takes into consideration a number of factors, including the following:

| • | The recommendations of our CEO (except with respect to his own compensation) as described below. |

| • | Our corporate revenue and profitability growth and other elements of financial performance. |

| • | The individual performance of each executive officer, including his or her