Company: ST
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001477294-25-000059
Chunk: 25

Company: Sensata Technologies Holding plc
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 25
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 strategy with a focused approach on specific business priorities that direct our commitment to progress while allowing us to adapt to the evolving needs of our customers. We anticipate achieving industry-leading margins for our shareholders in 2025 with increased focus on operational excellence. Our goal is to surpass the markets we operate in by generating organic revenue growth that exceeds underlying end market production levels and to position the Company favorably for future growth.

### Business Performance
In 2024, Sensata had free cash flow increasing by over 40% compared to prior year and four consecutive quarters of increased adjusted operating margin beginning with Q1. Our renewed focus on our core portfolio of highly differentiated sensing and electrical protection products is driving value and improving operational efficiency. We generated $393 million in free cash flow over the full year, representing approximately 76% conversion of adjusted net income.

Our capital allocation strategy is demonstrating strong results as our return on invested capital ("ROIC") increased by 50 basis points to 10.2% in 2024. In 2024, we reduced long-term debt by $200 million by redeeming $700 million in senior notes with proceeds from a $500 million senior notes issuance in June 2024 and approximately $200 million of cash on hand, which resulted in our net leverage decreasing to 3.0x compared to 3.2x at the end of 2023. We also purchased nearly 2 million Sensata shares for $69 million in the open market and paid shareholders $72 million in dividends. We remain committed to deleveraging the balance sheet going forward while also opportunistically undertaking share repurchases.

Our strategy for 2025 will focus on increasing organic growth, improving our operational efficiency, and optimizing capital allocation while continuing to prioritize reducing net leverage, opportunistically repurchasing shares and maintaining our dividend.

#### Incentive Compensation Performance Highlights
* Adjusted Free Cash Flow for purposes of the Annual Incentive Bonus for 2024, 2023, and 2022 excluded approximately $7 million, $23 million, and $23 million, respectively, from impacts related to divestitures and/or acquisitions, including related retention costs deemed as compensation for U.S. GAAP purposes.

** Relative Total Shareholder Return was not a performance measure for executive officers in 2022.

| 2025 PROXY STATEMENT - PAGE 28 |

### Executive Compensation Overview

#### Compensation Philosophy and Objectives
Our compensation program seeks to attract, develop, and retain a highly talented workforce at all levels within