Company: BHE
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0000950170-25-051057
Chunk: 25

Company: BENCHMARK ELECTRONICS INC
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 25
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 the peer group with a combination of performance-based restricted stock units (“ PSUs ”) at target level of performance and restricted stock units ( “ RSUs ” ) to align the compensation of our Named Execu tive Officers with the creation of shareholder value and to maintain our targeted level of at-risk compensation:

2024-2026 PSU awards: In the first quarter of 2024, the Company issued long-term equity-based incentive compensation awards to the Named Executive Officers, except Mr. Kamal, consisting of 50% in PSUs (at target level of performance) and 50% in RSUs. PSUs are earned based on the achievement of performance related to revenue, operating income margin and return on invested capital (“ ROIC ”) goals as documented in the Company’s three-year strategic plan.

2022-2024 PSU awards: Our Named Executive Officers earned shares under the 2022 PSU three-year awards below target consistent with our financial results based on the achievement related to revenue, operating income margin and ROIC.

2024 RSUs: Beginning with 2024 grants, RSUs vest over three years (at a rate of 33% per year), replacing the previous four-year schedule (25% per year). This adjustment resulted from a comprehensive market analysis that showed the majority of our peers use a three-year vesting structure, and ensures that our program remains competitive and aligned with market practices.

CFO Transition

In addition to the actions described above, the Human Capital and Compensation Committee made the following material compensation decisions relating to the CFO transition during 2024:

Mr. Schumaker’s new hire compensation package includes an annual base salary of $535,000 and a one-time, sign-on cash payment of $50,000, subject to repayment if he leaves the Company within one year. He is eligible to participate in the Company's annual incentive plan, with a target award of 80% of his eligible pay, beginning in the 2025 fiscal year, under the same terms as other Named Executive Officers. On October 14, 2024, Mr. Schumaker also received a one-time, new hire equity grant valued at $1,400,000. This award was split equally between RSUs vesting over three years and PSUs vesting at the end of a three-year performance period in 2026.

In connection with Mr. Kamal’s added responsibilities as Interim CFO during the search for Mr. Lakkaraju’s replacement, the Human Capital and Compensation Committee of the Board of Directors