Company: ASTE
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001104659-25-023778
Chunk: 53

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 53
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 provided to our executive officers on an annual basis to ensure that we are providing benefits that align with our overall compensation goal of providing competitive compensation to our executive officers that maximizes the interests of our shareholders. Executive Officer Severance Arrangements Prior to and during 2024, Mr. van der Merwe was a party to a severance agreement with the Company (the “van der Merwe Severance Agreement”), and each of the named executive officers participated in the Company’s former Executive Change in Control Severance Plan (the “Former CIC Severance Plan”). On December 18, 2024, the Company adopted the Executive and Key Employee Severance Plan (the “Severance Plan”) to replace the van der Merwe Severance Agreement and the Former CIC Severance Plan, effective as of January 1, 2025. The Former CIC Severance Plan provided for the payment of severance compensation and benefits in the event a participant’s employment was terminated without cause or for good reason within 24 months of a change in control. The Severance Plan maintains similar change in control severance protections as were provided in the Former CIC Severance Plans, but also provides severance compensation and benefits in the event of an involuntary termination that does not occur within 24 months of a change in control, although in lesser amounts. The Compensation Committee believes that severance arrangements provide important protection and financial security to executives from events outside their control and are an important recruitment and retention tool that are necessary in the competitive marketplace for talented executives. Furthermore, the Compensation Committee believes that it is appropriate to provide enhanced benefits in the event of a termination in connection with a change in control in order to encourage the Company’s executive officers to continue to work in the best interests of the Company and its shareholders in a potential change of control situation, and to evaluate any possible transaction with the maximum degree of independence and objectivity by removing the fear of job loss and other distractions that may result from potential, rumored or actual changes of control of the Company. The change in control benefits under both the Former CIC Plan and the Severance Plan are “double-trigger” benefits, meaning that no compensation will be paid to participants solely upon the occurrence of a change of control so as to not create an unintended incentive. We believe that this structure is appropriate for employees whose jobs are in fact terminated in such a transaction, without providing a windfall to those who continue employment following the transaction. Please see “Potential Payments Upon Termination or Change of Control” section below for descriptions