Company: FGI
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001628280-25-020349
Chunk: 28

Company: FGI Industries Ltd.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 28
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melewicz reached mutual agreement regarding his transition from Executive Vice President, FGI Industries to Sales Director, effective at the close of December 31, 2024.

The Compensation Committee references publicly available data in establishing base salaries of executive officers following our initial public offering. The Compensation Committee also considers the Chief Executive Officer’s recommendations as to compensation for the Company’s other executive officers. The Compensation Committee uses a subjective process to set base salaries and does not specifically weight any factors. Based upon the information reviewed, the Compensation Committee sets the compensation for each executive officer. The Chief Executive Officer is not present during the committee’s deliberations or voting on his compensation.

### Management Incentive Plan
The Company maintains an annual bonus plan under which our Named Executive Officers, together with other executives and key employees of the Company, are eligible to earn an annual bonus based on the level of achievement of corporate objectives, individual objectives, or a combination of the two. In March and April 2023, the Compensation

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Committee established incentive bonus targets for executive officers of the Company, including the Named Executive Officers to provide an opportunity for each participant to earn a cash bonus based on performance against established objectives. For 2023, the payout for each of our Named Executive Officers was determined based on the level of achievement of corporate objectives. MIB awards for Messrs. Bruce and Chen were based 70% on revenue targets and 30% on Adjusted Net Income targets. The MIB award for Mr. Kermelewicz was based on a combination of gross sales, profit, earnings before interest and taxes (“EBIT”) margin and gross margin return on investment (“GMROI”) for the company’s U.S, business. 2024 performance was below threshold levels for the weighted average of the relevant metrics, and thus, no portion of the MIB award vested for any Named Executive Officer.

#### Equity Compensation
The Company maintains the 2021 Equity Incentive Plan to assist in attracting, retaining, motivating and rewarding certain key employees, officers, directors, and consultants, including the Named Executive Officers, which promotes the creation of long-term value for shareholders by closely aligning the interests of such individuals with those of our shareholders.

In 2024, our Named Executive Officers received a mix of share options and performance stock units (“PSUs”). For 2024, Messrs. Bruce and Chen received share option grants vesting based on the achievement of Revenue, Adjusted Net Income and ROIC (30%,