Company: COHU
Filing Date: 2025-04-02
Form Type: DEF 14A
Source: 0001437749-25-010672
Chunk: 35

Company: COHU INC
Filing Date: 2025-04-02
Form: DEF 14A
Chunk 35
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 sales growth reflects the overall market acceptance of our products and non-GAAP pre-tax income reflects how effectively the business was managed during the year. A reconciliation of GAAP to non-GAAP pre-tax income used for the 2024 STI is included as Appendix A to this proxy statement.

The weighting of these corporate performance measures for purposes of the 2024 STI for each NEO were as follows:

| Named Executive Officer | Sales Growth | Non-GAAP Pre-tax Income |
| Luis A. Müller          | 30%          | 70%                     |
| Jeffrey D. Jones        | 30%          | 70%                     |
| Christopher G. Bohrson  | 30%          | 70%                     |
| Thomas D. Kampfer       | 30%          | 70%                     |

For the 2024 STI plan, the Compensation Committee determined to keep the Sales Growth metric weighting at 30% to continue to incentivize the delivery of sales growth during an extended soft market and to keep the profitability weighting at 70%.

The performance measures and their respective weightings were aligned among the executive officers to reflect their shared responsibilities for delivering the targeted performance. The Compensation Committee determined that using our consolidated results for sales and non-GAAP pre-tax income were appropriate for all executive officers given their responsibilities for the overall success of our business. Applicable threshold, target and maximum performance goals as a percentage of attainment of the applicable performance measure as well as the payout levels earned were unchanged from 2023.

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| 2024 STI Performance Measure Targets and Achievement Scale |

|                                            | Threshold | Target | Maximum |
| Performance to 4-Year Rolling Sales Growth | 0%        | 5%     | > 10%   |
| Payout Level Earned                        | None      | 100%   | 200%    |
| Performance to Non-GAAP Pre-tax Income     | < 5%      | 15%    | > 22.5% |
| Payout Level Earned                        | None      | 100%   | 200%    |

Performance Measure Target Levels

With respect to the target levels for sales, the Compensation Committee believed that, at the time, the target level for each performance measure was set, these target levels would be challenging and difficult, but achievable under normal business conditions with significant effort and skill, and strong execution. For 2024, the Compensation Committee expected that these target levels would be difficult