Company: NTWK
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001493152-25-015950
Chunk: 409

Company: NETSOL TECHNOLOGIES INC
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 409
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within the officer’s area of responsibility.

37

Mr.
Ghauri’s base salary for fiscal year 2025 was $840,000 and in addition he received $200,000 in allowances. Mr. Ghauri’s base
salary will be $840,000 and allowances will remain the same for fiscal year 2026. Mr. Almond’s base salary for fiscal year 2025
was $275,000. For fiscal year 2026, Mr. Almond’s salary will be $281,875. Ms. McGlasson’s salary for fiscal
year 2025 was $252,312 and her base salary for fiscal year 2026 will be $258,620. The Compensation Committee determined that salary alone
was an adequate basis for short term compensation, and that equity incentives would be used for the long-term elements of incentive programs
for Ms. McGlasson and Mr. Almond.

Annual
Bonus

Our
compensation program includes eligibility for bonuses as rewarded by the Compensation Committee. All executives are eligible for annual
performance-based cash bonuses in accordance with Company policies. The Compensation Committee takes into consideration the executive’s
performance during the previous year to determine eligibility for discretionary bonuses. Further, the compensation committee will review,
if applicable, the performance criteria set forth in an executive’s previous year’s agreement and will determine if the executive
has met such criteria in order to achieve the bonus. The Company’s bonus criteria at the executive management level is typically
based on a gross revenue and income from operations targets. Cash bonuses, if any for 2025 are reflected in the summary of compensation
table on page 40. For 2025, based on structured key performance indices (KPI)’) by the Compensation Committee, Mr. Ghauri earned
a bonus of $210,340. See bonus structure as discussed below on page 39. The Compensation Committee determined that Gross Revenue and
Income from Operations structure used in fiscal 2025 continues to be a proper measure for measuring Mr. Ghauri’s performance in
that it encourages his participation in revenue generating activities and continues to incentivize him to monitor and maximize cost efficiency.

Long-Term
Equity Incentive Compensation 

We
believe that long-term performance is achieved through an ownership culture that encourages long-term participation by our executives
in equity-based awards. Because base salary and equity awards are such basic elements of compensation within our industry, as well as
the high technology and software industries in general,