Company: AAOI
Filing Date: 2025-03-10
Form Type: DEF 14A
Source: 0001104659-25-022149
Chunk: 26

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-03-10
Form: DEF 14A
Chunk 26
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 growth and TSR compared to the 2024 TSR Peer Group. Key Aspects of 2024 Executive Compensation: Strong Emphasis on Performance • Majority of CEO Total Compensation is Performance Based and Other NEO Total Compensation is Variable-Based . As shown in the table below, approximately 83% of our CEO’s 2024 regular annual total target compensation was variable and at-risk, with about 50% being performance-based. Similarly, about 69% of our other NEOs’ annual target compensation was variable, with about 42% being performance-based. These proportions enhance the strong link between pay and performance for our CEO and other NEOs and align the interests of Company leadership with those of the Company and its stockholders. 16

TABLE OF CONTENTS

The table below illustrates the mix of fixed base salary, annual incentive and long-term target incentive compensation we provided to our CEO in 2024, and the high proportion that is variable and at-risk. 2024 CEO Target Total Direct Compensation

| Executive                  | ​ | ​ | Base Salary($) |   |         |   | ​ | ​ | TargetAnnualIncentive($) |   |         |   | ​ | ​ | 2024 TargetLong-TermIncentive:PSUs ($) |   |           |   | ​ | ​ | 2024Long-TermIncentive:RSUs($) |   |           |   | ​ | ​ | Total ($) |   |           |   | ​ |
| Chih-Hsiang (Thompson) Lin | ​ | ​ | ​              | ​ | 631,450 | ​ | ​ | ​ | ​                        | ​ | 631,450 | ​ | ​ | ​ | ​                                      | ​ | 1,200,000 | ​ | ​ | ​ | ​                              | ​ | 1,200,000 | ​ | ​ | ​ | ​         | ​ | 3,662,900 | ​ | ​ |
| % of Total                 | ​ | ​ | ​              | ​ |  17.24% | ​ | ​ | ​ | ​                        | ​ |  17.24% | ​ | ​ | ​ | ​                                      | ​ |    32.76% | ​ | ​ | ​ | ​                              | ​ |    32.76% | ​ | ​ | ​ | ​         | ​ |      100% | ​ | ​ |
| % of Long Term Incentive   | ​ | ​ | ​