Company: HCKT
Filing Date: 2025-03-21
Form Type: DEF 14A
Source: 0000950170-25-043233
Chunk: 32

Company: HACKETT GROUP, INC.
Filing Date: 2025-03-21
Form: DEF 14A
Chunk 32
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 start to be earned if the Company achieved a minimum “Commence” target of 5% ACV growth measured from the beginning of fiscal year 2023 and would be fully earned if the Company met or exceeded a 15% ACV “Goal” growth rate. There were no targets or incentive opportunities above “Goal” for this program.

As described above, in September 2024, the Compensation Committee approved the one-time grant of the Stock Price Awards to the Company’s named executive officers. In connection with the Stock Price Awards, the annual equity incentive award opportunities for the named executive officers during the performance period of the Stock Price Awards will be reduced by 50%, as compared to the annual equity incentive award opportunities in the Company’s executive compensation program for 2024, for compensation years 2025 through 2028 even if the performance hurdles are achieved earlier than that. Mr. Fernandez was granted a Stock Price Award in the amount of 786,885 performance-based restricted stock units, representing a grant date fair value of $12,104,914. Mr. Dungan was granted a Stock Price Award in the amount of 413,115 performance-based restricted stock units, representing a grant date fair of $6,355,086. Mr. Ramirez was granted a Stock Price Award in the amount of 72,000 performance-based restricted stock units, representing a grant date fair value of $1,107,600.

The Stock Price Awards are eligible to become earned based on achievement of three significant stock price hurdles over a performance period from the date of grant through December 31, 2028 and are conditioned upon satisfaction of time-based vesting conditions. The volume weighted average price per share of the Company’s common stock over any 20 consecutive trading days during the performance period must exceed the applicable stock price hurdle in order for the stock price hurdle to be considered achieved. Notwithstanding the date of achievement of the stock price hurdles during the performance period, the Stock Price Awards subject to the first, second and third stock price hurdles may not vest until the first, second and third anniversary of the grant date, respectively, which requires continued service through such date.

2024 Performance Outcomes

In 2024, the Company’s adjusted diluted earnings per share was $1.68, as compared to the Goal target of $1.71. This resulted in performance-based cash and equity bonuses above the “Commence” level payout but below the “Goal” level payout under the Company’s 2024 executive compensation plan. (See Appendix