Company: PLPC
Filing Date: 2025-03-21
Form Type: DEF 14A
Source: 0001628280-25-014223
Chunk: 50

Company: PREFORMED LINE PRODUCTS CO
Filing Date: 2025-03-21
Form: DEF 14A
Chunk 50
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 proceeds and the value of the stock on the day the SAR was exercised. Code Section 162(m) Section 162(m) limits publicly-held companies to an annual deduction for U.S. federal income tax purposes of $1.0 million for compensation paid to each of their chief executive officer, their chief financial officer, and their three highest compensated executive officers (other than the chief executive officer and chief financial officer) determined at the end of each year. The Administrator shall have full and absolute discretion to determine to what extent an award granted under the 2025 Plan is subject to or otherwise affected by the requirements of Section 162(m) of the Code and the regulations thereunder. In addition, in the event that changes are made to Section 162(m) of the Code to permit greater flexibility with respect to any awards, the Administrator may make any adjustments to the process it deems appropriate. Code Sections 409A and 280G Section 409A of the Code provides special tax rules applicable to programs that provide for a deferral of compensation. Failure to comply with those requirements will result in accelerated recognition of income for tax purposes, along with an additional tax equal to 20% of the amount included in income and interest on deemed underpayments in certain circumstances. While certain awards under the 2025 Plan could be subject to Section 409A, the 2025 Plan has been drafted to comply with the requirements of Section 409A, where applicable. Certain payments made to employees and other service providers in connection with a change in control may constitute “parachute payments” subject to tax penalties imposed on both the Company and the recipient under Sections 280G and 4999 of the Code. In general, when the value of parachute payments equals or exceeds three times the employee’s “base amount,” the employee is subject to a 20% nondeductible excise tax on the excess over the base amount, and the Company is denied a tax deduction for the excess payments. The base amount is generally defined as the employee’s

| 382024 Proxy Statement | PREFORMEDLINEPRODUCTSCOMPANY |

average compensation for the five calendar years prior to the date of the change in control. The value of accelerated vesting of restricted stock, options, or other awards in connection with a change in control can constitute a parachute payment.

| 392024 Proxy Statement | PREFORMEDLINEPRODUCTSCOMPANY |

| PROPOSAL THREE:Ratification of the Appointment of Ernst & Young LLP |

The Board recommends that you