Company: OCC
Filing Date: 2025-02-28
Form Type: DEF 14A
Source: 0001437749-25-005577
Chunk: 17

Company: OPTICAL CABLE CORP
Filing Date: 2025-02-28
Form: DEF 14A
Chunk 17
---
 Company’s equity compensation program are as follows:

| ● | Restricted Stock Awards are the primary element of long-term compensation for our named executive officers and other key employees.                                                                                                                                                                                                                |
| ● | Typically, restricted stock awards granted to named executive officers and other key employees will vest and be earned if pre-established performance goals have been met.                                                                                                                                                                         |
| ● | The use of performance goals as vesting criteria focuses management’s efforts on long- and short-term performance, and fully aligns management and shareholder interests.                                                                                                                                                                          |
| ● | The use of performance-based vesting restricted stock awards as part of management’s total compensation serves as a competitive recruiting and retention incentive for management, and causes management to have personal wealth at risk based on the long-term success of the Company, which further aligns management and shareholder interests. |
| ● | While not currently anticipated, we could grant other types of stock incentive awards to our named executive officers to achieve specific incentive objectives as described in the 2017 Plan.                                                                                                                                                      |
| ● | While the Compensation Committee considers awarding restricted stock awards to executive officers and other key employees each fiscal year, the last two times such restricted stock awards have been granted were during 2021 and 2024 (except in the case of a new hire).                                                                        |
| ● | We historically have awarded shares of Company Common Stock each year to our non-employee Directors (“Directors”) to ensure that their interests are closely aligned with those of our shareholders. These equity awards represent a significant portion of non-employee Directors’ annual compensation.                                           |

<div align='center'>12</div>

Requested Shares Authorization and Historical Practices

| ● | The Second Amendment will authorize for issuance under the 2017 Stock Incentive Plan 350,000 new Common Shares. As of February 1, 2025, there are 50,904 Common Shares that remain unissued under the 2017 Plan. The maximum award authorized for any employee or consultant in any fiscal year is 250,000 Common Shares.                                                                                                                                                                                                                                     |
| ● | Based on historic grant practices, the Company estimates that this request should be sufficient to cover awards for any employee awards considered for 2025 and/or 2026 and our expected non-employee Director awards for 2025 and/or 2026.                                                                                                                                                                                                                                                                                                                   |
| ● | Even with the Company’s equity awards since October 31, 2001 (net of restricted share forfeitures and shares withheld for the payment of taxes), the Company’s total issued and