Company: THRM
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001140361-25-010582
Chunk: 40

Company: Gentherm Inc
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 40
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 Company over the last few years, including, but not limited to, her leadership throughout the CEO and CFO search processes. The one-time payment was delivered, reduced to cover applicable taxes, in December 2024. Equity Awards – A Strong Pay-For-Performance Focus (PSUs), With Objective Company Performance Measures, Balanced With Long-Term Time-Based Awards (RSUs) ANNUAL GRANTS. Equity awards represent a significant portion of our NEOs’ compensation, as the Committee continues to regard increasing long-term shareholder value as senior management’s primary objective. Our long-term incentive program for senior level participants, including all executive officers, was initially approved in 2018 following significant shareholder engagement and a comprehensive review of our overall compensation program. Generally, the size of the awards depends on the executive’s position and current salary, as well as management’s recommendations, competitiveness in the market, internal pay equity, and other subjective factors deemed relevant by the Committee. We have granted the annual equity awards during the first quarter since 2019. The 2024 equity awards included 60% of grant value being delivered via target PSUs and 40% being delivered via RSUs for all NEOs excluding Mr. Eyler. In 2024, Mr. Eyler’s equity awards included 70% of grant value being delivered via target PSUs and 30% being delivered via RSUs.

65 | 2025 PROXY STATEMENT

PERFORMANCE-BASED RESTRICTED STOCK UNITS (PSUs). A target number of PSUs was granted to each NEO. PSUs ultimately are earned and vest based on four Company performance metrics, and any PSUs earned on any portion of the award vest three years from the grant date. In 2024, the Committee approved a revised PSU program, streamlining its focus on financial measures central to shareholder interests and addressing concerns about setting performance goals amidst ongoing macroeconomic, geopolitical and industry volatility.

| Relative TSR modifier has the potential 
 to impact overall performance +/- 25%   |

| Metric | % of Grant Valueof Target PSUs | Definition |

66 | 2025 PROXY STATEMENT

RELATIVE TSR COMPARISON GROUP. The Committee selected the following companies for Relative TSR comparison purposes, with advice from Meridian. The companies chosen reflect companies that are impacted by the same external economic forces as Gentherm. Specifically, companies were identified based on their industry and the correlation of their stock price movement with Gentherm. Given that this comparison group is used for purposes of measuring