Company: OC
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001370946-25-000125
Chunk: 38

Company: Owens Corning
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 38
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. Award amounts for each component may be earned from 0% to 200% of targeted levels, based upon performance. The Committee assesses the individual performance of the CEO, and reviews and approves the CEO’s assessment of individual performance of the other NEOs in determining the individual performance component of CIP payouts. The overall corporate component is earned based upon the achievement of predetermined financial goals as described below. Awards are paid in the form of a lump-sum cash payment.

At the beginning of each year, the Committee selects the overall corporate performance objectives, or funding criteria, that are used to determine the funding of the corporate performance component (75% of the target award) for the annual CIP. For 2024, the Committee selected specific levels of adjusted EBIT as the applicable performance metric based on the view that total shareholder return correlated with sustained earnings growth, which the Company measures through adjusted EBIT performance, our long-standing measure of profitability. Company earnings is the most prevalent annual incentive metric used by Company peers. Because of the importance of driving profitable growth, these measures of adjusted EBIT are weighted at 75% within the annual incentive payout. Owens Corning (consolidated) adjusted EBIT goals determine 40% of overall corporate funding, and performance of the Roofing, Insulation, and Composites businesses against their respective EBIT goals each contribute 20% to overall corporate funding.

Funding for each of the corporate components of the CIP can independently vary based on consolidated or business performance. For 2024, identified performance requirements were as follows: Threshold performance (0% CIP funding); a performance requirement that corresponded with 50% CIP funding (Gate 1); a Target performance requirement that corresponded with 100% CIP funding (Target Funding); and a performance requirement that corresponded with 200% funding (Maximum Funding), as shown in the chart below.

For consolidated or business performance falling at or below Threshold, that portion of the award would not fund. Straight-line mathematical interpolation was used for performance falling between identified performance requirements. This straight-line mathematical interpolation is performed separately for Owens Corning adjusted EBIT, and Roofing, Insulation, and Composites EBIT performance, respectively. The results are aggregated by applying a 40% weight to consolidated funding and 20% weight to the funding of each business.

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T a b l e o f C o n t e n t s

When establishing 2024 performance requirements the Committee used a variety of guiding principles, including: