Company: BHE
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0000950170-25-051057
Chunk: 27

Company: BENCHMARK ELECTRONICS INC
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 27
---
 compensation program is designed to:

attract, retain and reward the performance of our management talent;

incentivize the achievement of the Company’s strategic plan, and both short- and long-term operating objectives;

be transparent, fair and objective;

encourage the taking of prudent business risks for appropriate potential long-term benefits while avoiding excessive, unnecessary or unwise risk; and

encourage smart investment and prudent deployment of capital.

Primary Components of Compensation

The primary components of our executive compensation program are as follows:

Base Salary , which pays a set level of cash income to the executive.

Annual Performance-Based Incentive Award , which pays a variable cash award to reward achievement of short-term operational performance goals, which in 2024 was based on (i) total revenue, (ii) Adjusted Operating Income (as defined below), and (iii) Adjusted Inventory levels (as defined below).

Long-Term Equity-Based Incentives, which are granted using a mix of equity as follows:

PSUs , designed to encourage the creation of long-term shareholder value and reward performance, subject to the achievement of specific long-term financial objectives over a specified performance period, which typically have a three-year performance cycle.

RSUs , which beginning in 2024, vest over a three-year period, are awarded to retain management, and permit each executive to steadily build an ownership stake in the Company to encourage the creation of long-term shareholder value.

Two of the four components are “at-risk” in that they only have value if the Company’s financial objectives are achieved. The Company believes that the design of these at-risk components closely aligns executive pay with performance beneficial to the Company and its shareholders over the short and long term.

| 23  Benchmark. Benchmark Electronics, Inc.     •    2025 Proxy Statement |

#### COMPENSATION DISCUSSION AND ANALYSIS
The Decision-Making Process

Role of Human Capital and Compensation Committee.The Human Capital and Compensation Committee is responsible for reviewing and approving all salary and annual incentive compensation paid to officers of the Company, including those reporting directly to the CEO and those subject to Section 16 of the Exchange Act (“Section 16”), including, among others, our CEO and the other Named Executive Officers listed below in the Summary Compensation Table. The Human Capital and Compensation Committee recommends, and the Board of Directors approves, the CEO’s compensation. The Human Capital and Compensation Committee also approves the equity incentives provided to our executives, as well as most other employees (except for certain employees not subject to Section 16 for