Company: NPO
Filing Date: 2025-03-24
Form Type: DEF 14A
Source: 0001171200-25-000088
Chunk: 23

Company: Enpro Inc.
Filing Date: 2025-03-24
Form: DEF 14A
Chunk 23
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 help us reach annual business goals that drive our long-term objectives. We refer to this plan as the annual performance plan. The amount of awards paid under our annual performance plan is based on performance relative to threshold, target and maximum performance levels set when the awards are made. When performance falls below the threshold, executives receive no payout. Payouts at a threshold level of performance are 50% of the target payout, payouts at a target level of performance are 100% of the target payout, and payouts at a maximum level of performance are 200% of the target payout. Performance between any of the established levels yields a proportional payout. The Committee, after reviewing the company’s performance in 2024, was permitted to adjust amounts payable under the awards in its discretion. For 2024, the performance measures and weightings for the annual performance plan were:

| Adjusted  
 EBITDA    | 50% |
| Cash      
 Flow ROIC | 50% |

Why we use adjusted EBITDA and Cash Flow ROIC to measure performance The Committee selected these performance measures because they are the critical measures we use internally in managing our businesses and are measures of our profitability and the performance of our assets relative to our investment. The Committee believes that performance against these measures is a primary driver, over time, of the value of our company. The Committee believes that adjusted EBITDA (or, earnings before interest, income tax, depreciation and amortization expenses and selected items) and Cash Flow ROIC (or, cash flow return on operating capital) are the most appropriate measures of the annual operating performance of our businesses. These performance measures were selected also to focus operators on assets they can control—working capital and capital expenditures and earnings on those assets. The Committee selected Cash Flow ROIC because this measure includes an emphasis on cash flow and exercising capital discipline and working capital management, consistent with our corporate strategy to focus on high-margin growth, optimizing cash flow of our existing businesses and selectively pursuing strategic acquisitions that are aligned with secular growth trends, enjoy high recurring revenue and margins, and have low capital intensity. In selecting these performance measures, setting the performance goals and awarding the corresponding incentive opportunities, the Committee took into account management’s recommendations.

| 2025            
 PROXY STATEMENT | 31 | ENPRO 
 INC.  |

| Compensation discussion and analysis |     | 2024 executive compensation decisions in detail |

Performance goals for 2024 The following table presents the 2024 performance goals set for the annual performance plan. The