Company: EME
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001140361-25-015031
Chunk: 21

Company: EMCOR Group, Inc.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 21
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16

COMPENSATION DISCUSSION AND ANALYSIS Overview The objectives of our executive compensation program, as applicable to our named executive officers, whose names appear in the Summary Compensation Table on page 30, are to attract, retain and motivate key executives with the skills necessary to assure our long-term success. The purposes of the key components of the program are:

| • | to reward our named executive officers’ expertise and experience; |

| • | to reward our named executive officers’ performance that drives achievement of our short-term and long-term goals by providing a strong link between pay and performance; and |

| • | to align our named executive officers’ compensation with the interests of our stockholders. |

The executive compensation program uses various compensation elements that are designed to incentivize the achievement of both our short-term and long-term performance. In designing our executive compensation program, we have applied the following principles:

| • | compensation should reinforce our business strategy and long-term stockholder value creation; |

| • | a significant portion of named executive officer total compensation should be at risk and tied to the achievement of our financial objectives while considering the achievement of the named executive officer’s annual individual goals and objectives. When we exceed our financial objectives for the relevant performance period, we reward our named executive officers with incentive awards greater than their respective targeted incentive awards based on financial performance. When our financial performance does not meet the established financial objectives, our named executive officers receive either no incentive awards based on these criteria or incentive awards that are less than their targeted incentive awards. The Compensation Committee sets the financial objectives for a particular performance period; |

| • | incentive compensation should reflect both our short-term and long-term financial performance; |

| • | incentive awards should be designed to align the interests of our stockholders and named executive officers by having a meaningful portion of such awards be delivered in equity; and |

| • | incentive awards should serve as a recruitment and retention device so that named executive officers are motivated to join and stay with us. |

The key components of our compensation program are:

| • | base salary; |

| • | short-term incentives under the Key Executive Incentive Bonus Plan in the form of annual incentive awards (the “Annual Incentive Program”) based upon (a) our financial performance for the applicable year as measured by two metrics: diluted earnings per share from continuing operations and the ratio of our positive operating cash flow to our operating income and (b) the achievement of personal goals and objectives;