Company: HEI-A
Filing Date: 2025-01-31
Form Type: DEF 14A
Source: 0001140361-25-002543
Chunk: 43

Company: HEICO CORP
Filing Date: 2025-01-31
Form: DEF 14A
Chunk 43
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 this change. Performance targets for the future awards will be provided with each corresponding proxy statement. Perquisites Most of our named executive officers and certain other executives who utilize their automobiles, at least in part, for company business have been offered either automobiles or automobile allowances. This practice has been in place for approximately 35 years. To the extent that they use their automobiles for non-company business, they receive a personal benefit which is reported as a taxable benefit. In addition, we pay for life insurance for some of our named executive officers consistent with past practices.

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TABLE OF CONTENTS

The Committee benchmarking analyses and the Committee members’ own experience have led the Committee to conclude these types and amounts of perquisites to be appropriate and customary for executive officers with many other companies. Management Involvement It is the Committee’s practice to have our Senior Executive Vice President and our Chief Executive Officer work with our compensation consultants to verify benchmarks on other companies’ practices and, where appropriate, provide updated suggestions for compensation methods. The Committee relied on the independent compensation consultants and management to finalize the benchmark indexes and to exchange information. The Committee then studies and analyzes such information and directs involved management to provide further information as needed, but the Committee retains all discretion over compensation of the Company’s named executive officers, as well as the hiring or termination of all consultants. However, the Committee anticipates the future portion of long-term compensation will exceed 50% of total compensation. Other Compensation Matters Although approximately 28% of the named executive officers’ compensation was long-term (which consists of stock options, 401(k) Plan and LCP compensation), because the Committee believes it should apply its own judgment and sense of fairness in setting compensation levels, it does not use set formulas to allocate between long-term and currently paid out compensation. The Committee applies this philosophy to the breakdown between cash and non-cash compensation in order to maintain flexibility to incentivize and recognize management based upon their qualitative interactions with us and other shareholders. What We Evaluate in Setting Policies and Making Compensation Decisions

| ▪ | Cash Flow |

| ▪ | Net Income |

| ▪ | Operating Income |

| ▪ | Revenues |

| ▪ | Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) |

| ▪ | Whether the company met both quantitative and qualitative goals |

| ▪ | Management’s ethical conduct and adherence to our HEICO family culture |

| ▪ | Management’s adherence to corporate policies |

| ▪ | Management’s