Company: KVHI
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001104659-25-040173
Chunk: 12

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 12
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 and other variable costs, a prior period tax settlement, transaction-related and other variable legal and advisory fees, foreign exchange transaction gains and losses, gains and losses on the disposal of fixed assets, revenue attributable to the sale of product previously used in our AgilePlans program, adjustments for certain revenue lost or delayed for reasons deemed outside the control of management and any other non-recurring or non-cash expenses incurred, and by subtracting capital expenditures. The adjustments made to adjusted service gross profit, adjusted product gross profit and recurring operating expenses were to exclude the effect of any income or expense items that are excluded from adjusted EBITDA, as applicable. For our chief executive officer, the target amount of incentive compensation for 2024 and 2023 was 90% of base salary. For the other named executive officers, the target amount of incentive compensation for 2024 and 2023 ranged from 9 KVH Industries, Inc. 2025 Proxy Statement

TABLE OF CONTENTS PROPOSAL 2 – NON-BINDING SAY ON PAY VOTE 40% to 50% of base salary. The employment of two of our named executive officers, Roger A. Kuebel and Robert J. Balog, ended in 2024, and they did not participate in the 2024 incentive compensation program. For the financial performance components of the 2024 plan, the plan provided that payouts would begin when we achieved the requisite threshold of performance for the relevant metric, at which point executives would earn 50% of the targeted bonus amount for that metric. For performance below the applicable threshold, the executives would not earn any incentive compensation attributable to the relevant metric. Executives would earn the targeted incentive compensation payout when performance equaled the target and would earn the maximum payout of 200% of the targeted payout when performance equaled or exceeded a maximum level of outperformance. In March 2025, after assessing our financial performance for 2024, our compensation committee determined that, for adjusted service gross margin, we did not achieve the threshold level of performance; for adjusted product gross profit, we exceeded the threshold level of performance and made approximately 55% progress toward our target; for recurring operating expenses, we exceeded our maximum targeted savings by approximately 39% and for adjusted EBITDA, less capital expenditures, we exceeded the threshold and made approximately 66% progress toward our target. Collectively, this level of achievement resulted in an aggregate payout of 50% of each executive’s target bonus for corporate performance. For individual