Company: PENG
Filing Date: 2025-12-19
Form Type: DEF 14A
Source: 0001616533-25-000073
Chunk: 56

Company: Penguin Solutions, Inc.
Filing Date: 2025-12-19
Form: DEF 14A
Chunk 56
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| Best Practice                                                                                                                                    |     | Our Policy Improvements                                                                                                                                                                                                                                                                                                                                                                               |
| Sustainability Disclosures and Governance: Enhance environmental and social sustainability practices, goals, and disclosures.                    |     | •We formed the Steering Committee in 2021 and have continued our efforts to support a sustainable future and a better world.                                                                                                                                                                                                                                                                          
 •We have demonstrated progress toward reaching our longer-term measurable environmental stewardship goals, including reduction of our Scope 1 and Scope 2 carbon emissions (primarily through the purchase of renewable energy and carbon offsets) in support of our commitment to achieve net-zero Scope 1 and Scope 2 carbon emissions by 2030.                                                     
 •We launched our ERGs in fiscal 2023, providing new spaces for employees to connect, and we continue to support and develop our ERGs, which are open to all employees. We have conducted robust gender pay equity studies of our U.S. workforce to inform our efforts to advance pay parity amongst our employees, which resulted in modest changes that we subsequently implemented.                 
 •In fiscal 2023, 2024, and 2025, our Compensation Committee approved measurable human capital and environmental stewardship goals for assessing executive performance. Ten percent of each executive’s target bonus is affected by performance on predetermined goals focused on human capital and environmental stewardship, which will be measured year-over-year using a scorecard-based approach. |

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#### How We Make Executive Compensation Decisions

#### Executive Compensation Objectives
Our executive compensation program is designed around five primary objectives:

• Aligning executive and stockholder interests;

• Maintaining levels of guaranteed compensation aligned with our peer group and other comparably sized companies;

• Motivating and rewarding executives for performance against our annual operating plan;

• Attracting, motivating, and retaining qualified executives; and

• Improving quality of life by way of health and welfare benefits.

In furtherance of these objectives, the variable components of our executive compensation program tie significant portions of total compensation to Company and individual performance, using a combination of cash performance incentives and equity compensation. The Compensation Committee believes that the executive compensation program should motivate the executive team to drive strong and sustained performance for Penguin Solutions. Accordingly, executive compensation is weighted towards at-risk, variable incentive awards — short-term cash incentives and equity grants — rather than base salaries. This focus on performance and equity aligns our executive compensation with the performance of individuals and the Company as a whole and the interests of our stockholders. Furthermore,