Company: CPSH
Filing Date: 2025-03-17
Form Type: DEF 14A
Source: 0001437749-25-008032
Chunk: 35

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-03-17
Form: DEF 14A
Chunk 35
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oli joined the Board effective December 3, 2024. |

| (9) | Cash fees payable to Mr. Cavoli for his service as a director are paid to Brenta Group LLC at his request, for which Mr. Cavoli is the sole member. |

Board members are entitled to receive a Board meeting fee of $1,000 per meeting unless waived. Board members also received a quarterly stipend of $3,000 for their service during fiscal year 2024.

Directors also are entitled to receive grants of stock options. In February 2024, the Board granted to each of Messrs. Hughes, Bennett, Culligan and Norwood and Dr. Snow options to purchase 15,000 shares of Common Stock at $2.34 per share, the closing price of the Common Stock on the date of grant. These options have a term of 10 years and were exercisable in full on the date of grant. In December 2024 the Board granted Mr. Cavoli options to purchase 15,000 shares of common stock at 1.58 per share, the closing price of the Common Stock on the date of grant.

The Company may reimburse members of the Board for their reasonable out-of-pocket expenses incurred in attending Board and committee meetings. The Company believes that members of the Board received compensation during fiscal year 2024 commensurate with their responsibilities to the Company and appropriate for a company of the Company’s size and revenues.

PROPOSAL 2. STOCKHOLDER ADVISORY VOTE ON

EXECUTIVE COMPENSATION

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Reform Act”) and Section 14A of the Exchange Act entitle stockholders to cast a non-binding, advisory vote on the compensation of executives as described in a company’s proxy statement, otherwise known as “say on pay” proposals. The legislation makes clear that these votes do not overrule a Board’s compensation decisions, impose additional fiduciary duties on the Board, or limit stockholders’ ability to make other compensation-related proposals.

CPS’s primary goal when determining compensation is to align compensation with our business objectives and performance. Our aim is to attract, retain and reward executive officers and other key employees who contribute to our long-term success and to motivate those individuals to enhance long-term stockholder value. The Company aims to make executive compensation sensitive to Company performance, which is defined primarily in terms of sales and profits.

We believe that the Company’s executive compensation programs have been effective