Company: TH
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0001104659-25-032818
Chunk: 27

Company: Target Hospitality Corp.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 27
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 us to focus specifically on core operational efficiency and performance, providing a more accurate representation of the Company’s ability to generate sustainable earnings. Investors and stakeholders increasingly rely on EBITDA as a key metric for evaluating a Company’s financial health and operational effectiveness, making it a widely recognized and accepted measure within the investment community. By aligning our short-term incentive plan with this metric, we not only enhance transparency but also demonstrate a commitment to performance metrics that resonate with our investors. Furthermore, Adjusted EBITDA serves as an effective tool for benchmarking and comparative analysis within our industry. By incorporating Adjusted EBITDA into our short-term incentive plan, we are directly linking employee incentives to the Company’s ability to outperform industry standards and deliver sustained operational excellence.

| ​ | 36 | ​ | ​ | ​ | investors.targethospitality.com | ​ |

TABLE OF CONTENTS COMPENSATION DISCUSSION & ANALYSIS

The threshold, target, stretch and maximum performance and payout opportunities under the 2024 short-term incentive plan (subject to interpolation between points), along with the actual performance achieved and related payout percentage, are set forth below.

| ​ 
 ​ | ​                               
 Payout %(1)                     | ​ 
 ​ | ​ 
 ​ | Threshold 
 ​         | ​ | 50% | ​ | ​ 
 ​ | ​ 
 ​ | Target 
 ​      | ​ | 100% | ​ | ​ 
 ​ | ​ 
 ​ | Stretch 
 ​       | ​ | 150% | ​ | ​ 
 ​ | ​ 
 ​ | Maximum 
 ​       | ​ | 200% | ​ | ​ 
 ​ | ​ 
 ​ | Actual 
 ​      | ​ | 93% | ​ | ​ 
 ​ |
|:--|:--------------------------------|:--|:--|:----------|:--|----:|:--|:--|:--|:-------|:--|-----:|:--|:--|:--|:--------|:--|-----:|:--|:--|:--|:--------|:--|-----:|:--|:--|:--|:-------|:--|----:|:--|:--|
| ​ | Adjusted EBITDA﻿(1)($ millions) | ​ | ​ | ​         | $ | 185 | ​ | ​ | ​ | ​      | $ |  205 | ​ | ​ | ​ | ​       | $ |  215 | ​