Company: CRAI
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001104659-25-039429
Chunk: 35

Company: CRA INTERNATIONAL, INC.
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 35
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 our cash incentive plan. The equity and cash awards comprising the grants made under our LTIP are designed to work together to achieve the program’s primary objectives; namely to: • directly align a significant portion of the total compensation of these employees with the delivery of future value to our shareholders; • focus our senior corporate leaders, practice leaders and other key revenue generators on performance by directly linking their compensation to the achievement of pre-determined performance goals and shareholder returns; • provide a competitive compensation program that has significant retention value; and • promote top-line and bottom-line growth. The equity awards granted under our LTIP further align the interests of our executive officers with the interests of our shareholders because they are held subject to the ownership requirements described in this compensation discussion and analysis under the heading “Ownership guidelines” below. Long-term incentive program: equity awards As noted above, our LTIP serves as a framework for the equity compensation we grant to our senior corporate leaders, practice leaders and other key revenue generators under our amended and restated 2006 equity incentive plan. The equity awards granted to our executive officers in fiscal 2024 consisted of the following mix of equity awards: 40% RSUs and 60% PRSUs. For purposes of these weightings, each share by which an RSU or a PRSU is measured is treated as one share, and it is assumed that the PRSUs’ target performance will be achieved. Since 2019, our compensation committee determined to grant only RSUs and PRSUs to our executive officers and not to include stock options in these equity awards. The equity awards available under our LTIP include: • RSUs because they directly align the interests of the recipient with the interests of our shareholders due to their value being directly tied to the value of our common stock. In addition, the vesting schedule of at least four years applicable to RSUs granted under our LTIP provides long-term retention value. • PRSUs because the value of the award is based on our performance, enabling us to provide longer term compensation that motivates the recipient to increase our profitability, our growth and shareholder value. While our standard LTIP PRSUs typically measure performance over a two-year period based on our average Performance Compensation EBITDA (8) margin (including acquisitions and divestitures) and our consolidated non-GAAP cumulative annual net revenue growth (including acquisitions and divestitures), (9) the amended and restated 2006 equity incentive plan provides flexibility to design performance awards with varying metrics, performance periods and