Company: IPGP
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0001111928-25-000054
Chunk: 31

Company: IPG PHOTONICS CORP
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 31
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 with a strong balance sheet, with cash, cash equivalents and short-term investments of $930.2 million as of December 31, 2024. The Company allocated capital in 2024 through the return of $343.8 million to stockholders in share repurchases, as well as investments in new product development and the acquisition of cleanLaser, a maker of laser cleaning systems.

As a result of difficult conditions in its markets and business, the Compensation Committee of the Board determined that decisive action was necessary to support executive management in navigating these significant challenges and changes, to stabilize and retain the management team and to create value for stockholders over the long-term. As described in more detail below, such action included engagement of a new CEO with a competitive compensation package, an adjustment to the annual incentive plan with a lower payout potential, a redesign of performance share units (“PSUs”), and an enhanced long-term incentive opportunity for certain NEOs.

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#### Compensation Discussion and Analysis

#### Stockholder-Minded Compensation Practices
| PRACTICES WE EMPLOY                                                                                                                                                          |     | PRACTICES WE AVOID                                                                                                                                                                                              |
| üAlign our NEO Pay with Performance: Strong links of compensation to Company performance and stockholder returns for annual and long-term incentives.                        
 üBalance Annual and Long-Term Incentives: Incentive programs provide an appropriate balance of annual and long-term incentives and include multiple measures of performance. 
 üUse Long-Term Incentives to Link Executive Pay to Company Performance: Over half of NEO pay consists of long-term incentives.                                               
 üCap Annual Incentive Compensation and Performance-Based Equity Payouts.                                                                                                     
 üAnnual Risk Assessment of Compensation Program.                                                                                                                             
 üIndependent Compensation Consultant: The Compensation Committee retains a compensation consultant, who is independent and without conflicts of interest with the Company.   
 üStock Ownership Requirements: Officers and directors are subject to stock ownership guidelines to further align their interests with those of our stockholders.             
 üClawbacks on Executive Compensation: We maintain a compensation recovery policy covering cash and equity.                                                                   
 üAnti-Pledging Policy.                                                                                                                                                       
 üAnti-Hedging Policy Applicable to All Employees and Directors.                                                                                                              |     | ûNo Guaranteed Annual Incentive Plan Bonuses:Our annual incentive compensation plan is performance-based and does not include any minimum payout levels.                                                        
 ûNo Excise Tax Gross-Ups:We do not provide excise tax gross reimbursements for change in control payouts.                                                                                                       
 ûNo Ex