Company: IRDM
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001628280-25-015183
Chunk: 94

Company: Iridium Communications Inc.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 94
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 two goals will be weighted equally and determined independently. For purposes of calculating achievement, total service revenue will be calculated in accordance with generally accepted accounting principles in the United States, or GAAP, but as in prior years the goal will exclude revenue contributions from our Russian subsidiaries, due to the continued uncertainties surrounding the war between Russia and Ukraine. The calculation of OEBITDA for these purposes will exclude the impact from our Russian operations.

We selected these performance goals because we believe they are representative measures of value creation for our stockholders over the longer term. OEBITDA was added as a second metric in 2024 in order to incentivize profitable growth in addition to top-line service revenue growth. While OEBITDA is a meaningful component of our annual bonus plan, we believe that including it as part of our long-term incentive program and measuring performance over a multi-year period is important to driving long-term, sustainable OEBITDA growth.

The number of shares earned under each award will be based on the achievement of threshold, target or maximum levels for each performance goal, as set forth in the table below. We increased the maximum payout percentage of our performance-based RSU awards from 150% to 200% in 2024 to align with the market practice among our peers and to reflect the stretch nature of the goals that could result in maximum awards. The specific threshold, target and maximum levels for each performance goal are not disclosed now because we believe providing such information prior to the completion of the performance period would be competitively harmful. We will disclose the specific performance targets along with performance achievement after the performance period has ended and the awards are earned.

| Achievement Level(1)                  |     | Percentage of Shares Eligible to Vest Based On |     |      |
| Adjusted Service Revenue Result (50%) |     | Adjusted Cumulative OEBITDA Result (50%)       |     |      |
| Threshold                             |     | 0%                                             |     | 0%   |
| Target                                |     | 100%                                           |     | 100% |
| Maximum                               |     | 200%                                           |     | 200% |

(1) If the threshold achievement level is not achieved for either performance goal, then no corresponding shares will be earned for that goal. If performance falls between the threshold and target levels or between the target and maximum levels for either performance goal, then linear interpolation will be used to determine the payout percentage for that goal.

The number of shares earned under the performance-based RS