Company: PENG
Filing Date: 2025-12-19
Form Type: DEF 14A
Source: 0001616533-25-000073
Chunk: 67

Company: Penguin Solutions, Inc.
Filing Date: 2025-12-19
Form: DEF 14A
Chunk 67
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 above, the percentage of target PSUs eligible to vest will be determined on a straight-line basis ( i.e. , linearly interpolated) between the two nearest payout vesting percentages indicated above .

Fo r fiscal 2025 PSU awards, TS R is measured as the percentage change in the 30-trading-day rolling average closing price of a share as measured on the first day and the last day of the three-year period begi nning on September 30, 2024 (the “Performance Period”).

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Additional Performance-Based Vesting Opportunity for CEO – Share Price CAGR . Additionally, for Mr. Adams’ fiscal 2025 PSU award, provided that at least the target performance level of TSR is achieved, the percentage of target PSUs eligible to vest (in addition to the percentage of target PSUs eligible to vest as determined by the Company’s TSR performance above) may be increased to a maximum of 300%, based on the Company’s “Share Price CAGR” (as defined below) over the Performance Period. “Share Price CAGR” is the compound annual growth rate of the Company’s stock price, tied to the share price at the end of the Performance Period as compared to the beginning of the Performance Period.

The Compensation Committee incorporated this feature to reinforce alignment with stockholders and to ensure that this additional vesting opportunity occurs only when the Company delivers both strong relative TSR results and significant multi-year absolute stock price appreciation. Under this structure, no additional vesting opportunity is available unless (i) the Company achieves at least target-level TSR performance and (ii) the Company’s Share Price CAGR is at least 15%, which reflects a substantial level of sustained value creation over the three-year period. As a result, the Share Price CAGR vesting opportunity under Mr. Adams’ fiscal 2025 PSU award requires meeting two separate performance conditions that each focus on long-term stockholder value creation.

| Company Share Price CAGR Performance * |     | Additional Percentage of Target PSUs Eligible to Vest * |
| +25%                                   |     | 100%                                                    |
| +20%                                   |     | 50%                                                     |
| +15%                                   |     | 25%                                                     |
| < 15%                                  |     | N/A                                                     |

* If the Company’s Share Price CAGR performance falls between the levels indicated above, the additional percentage of target PSUs eligible to vest (in addition to the percentage of target PSUs eligible to vest as determined