Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 538

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1C
Chunk 538
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be included in our compensation mix in order for us to compete effectively for talented executives. We award time based vested stock
from our Equity Incentive Plans for several reasons. First, such awards facilitate retention of our executives. Restricted stock generally
vests only if the executive remains employed by the Company. Second, time-based stock awards align executive compensation with the interests
of our shareholders and thereby focuses executives on increasing value for the shareholders. Time vested stock generally only provides
a superior return if the stock price appreciates, and results in materially less dilution to the shareholders than options while frequently
providing equivalent value to the employee at less cost to the Company than options. In determining the number of shares to be granted
to executives, we take into account the individual’s position, scope of responsibility, ability to affect profits and shareholder
value, past and recent performance, and the estimated value of shares at the time of grant. Assuming individual performance at a level
satisfactory to the Compensation Committee, the size of total equity compensation is generally targeted at the 50th percentile for the
peer group. As indicated above, market data, including compensation percentiles, were among several factors the committee reviewed in
determining compensation.

Equity
incentives provided to executives are determined by the Fair Market Value of our common stock on the grant date. Each executive’s
stock award was based on an analysis of the Compensation Committee of an appropriate overall cash compensation for each individual taking
into account their position and compensation at similarly situated companies. Each executive’s stock award was based on a desired
overall compensation cash value less the base salary as approved by the Compensation Committee.

Mr.
Najeeb Ghauri is eligible to receive grants of shares based on the performance criteria connected to gross revenues and net income from
operations as discussed below. The total compensation including equity grants is designed to bring the Chief Executive Officer to the
mean market average.

Mr.
Najeeb Ghauri’s bonus for fiscal year 2025 is based on the total revenues and income from operations on a graduated basis. The
following table demonstrates the graduated percentage of bonus that Mr. Ghauri will be eligible to earn based on the percentage of the
goal achieved. Bonuses will be paid 60% in cash and 40% in shares of common stock valued on June 30, 2025. Total net revenues and income
from operations are based on those values reported for the year ending June 30, 2025