Company: AVD
Filing Date: 2025-05-29
Form Type: DEF 14A
Source: 0000950170-25-079166
Chunk: 26

Company: AMERICAN VANGUARD CORP
Filing Date: 2025-05-29
Form: DEF 14A
Chunk 26
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 “FOR” THE FOLLOWING RESOLUTION: “Resolved, that the appointment of Deloitte & Touche LLP as the Company’s independent registered public accounting firm to audit the 2025 consolidated financial statements and related internal controls over financial reporting of American Vanguard Corporation and its subsidiaries, by the Audit Committee, is hereby ratified.”

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PROPOSAL 3

Advisory Vote on Executive Compensation</div>

Over the past three years, stockholders have indicated on average approximately 89% approval for the Company’s executive compensation. As mentioned in the Compensation Discussion and Analysis, our executive compensation is designed to provide compensation on the basis of performance that supports key financial and strategic business outcomes; to attract, motivate and retain top talent to lead our business; and to align management’s interests with those of our stockholders. Based on the voting results at the Company’s 2020 annual meeting of stockholders with respect to the frequency of stockholder advisory votes to approve the compensation of the Company’s executive officers, the Company has decided to include such an advisory vote in its proxy materials on an annual basis. The next say-on-frequency vote will be held at the 2026 annual meeting of shareholders.

Our executive compensation:

Has been benchmarked against a comparator group of companies that are similar in size, GICS codes and business activity;

Is designed in collaboration with an independent compensation consultant;

Features incentive elements that rise and fall with financial performance. For example, with lower sales and profitability year-over-year, NEOs received no incentive compensation and were below the 25 th percentile for total direct compensation as compared to Proxy Peers;

Includes time-based and performance-based equity awards and holding requirements that give executives a longer term view of the Company’s financial performance. During 2024, NEOs received a combination of TSR-based options and time-based restricted stock, and in light of a low share price and restrictions on share repurchases, the Company suspended equity awards to incumbent employees pending attainment of a higher share value;

Is based primarily upon KPIs, weighted by importance (including adjusted EBITDA, net sales, net working capital, transformation implementation and manufacturing/operating expense goals, to be calculated on a formula-driven basis in 2025;

Includes factors that limit discretion and discourage misconduct, such as effective caps on bonuses, a clawback provision for incentive compensation received by persons complicit in a material restatement, and a policy against hedging shares; and

Is administered pragmatically to ensure that NEOs are paid for performance