Company: CVGI
Filing Date: 2025-04-04
Form Type: PRE 14A
Source: 0001628280-25-016847
Chunk: 45

Company: Commercial Vehicle Group, Inc.
Filing Date: 2025-04-04
Form: PRE 14A
Chunk 45
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 2025 and 2026.

(11) Mr. Tajer, who was an NEO for part of 2024, ceased being President of Electrical Systems on October 31, 2024 and therefore ceased being an

NEO effective October 31, 2024.

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### EXECUTIVE COMPENSATION
Compensation Policies and Practices

Our compensation philosophy is designed to attract and retain exceptional leaders who will deliver the Company’s annual business plan; execute our long-term diversification and growth strategy; create long-term shareholder value; and exceed the expectations of our customers, and employees. The Compensation Committee (as used in this section, the "Committee"), which is comprised entirely of independent directors, has a pay for performance philosophy that is reflected in our compensation plan designs, and places a majority of each executive officer’s total compensation at risk each year. Our compensation plans are designed to provide appropriate incentives to encourage the execution of our business plan and we defer the delivery of significant portions of incentive compensation in order to link the interests of management to long-term value creation for our stockholders. Incentive awards are based on short-term and long-term financial metrics, designed to encourage profitable innovation and growth, without encouraging excessive or unnecessary risk taking. To further mitigate risk taking, the Committee sets a minimum performance threshold and a maximum payment limit on incentive award opportunities each year and has adopted executive stock ownership guidelines, an anti-hedging policy, and a clawback policy.

Fiscal 2024 was a challenging year for the Company. For 2024, we achieved 1.1% adjusted Operating Income Margin, which excluded certain costs associated with restructuring activities. Since our threshold Operating Income Margin was 1.9%, participants were not entitled to earn a payout for this goal. We ended 2024 with Operating Working Capital as a percent of sales at 21.1% and since our target was 20.0%, this outcome could have resulted in above threshold payout for this goal. We won $105 million in New Business in 2024 and therefore exceeded the target of $100 million, this outcome could have resulted in an above target payout for this goal. However, the Committee exercised negative discretion to reduce the bonus to zero, based on broader Company performance, management recommendation and alignment with stockholder interests. Our executive compensation programs will continue to pay for performance and place considerable emphasis on variable compensation to align Named Executive Officer ("NEO") pay with long-term stockholder value creation. The