Company: AAOI
Filing Date: 2025-02-28
Form Type: PRE 14A
Source: 0001104659-25-019126
Chunk: 37

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-02-28
Form: PRE 14A
Chunk 37
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 | 0%   | ​ | ​ | ​ |
| ​ | ​ | Threshold         | ​ | ​ | ​ | $13.87 (5% CAGR)        | ​ | ​ | ​ | ​                            | ​ | 25%  | ​ | ​ | ​ |
| ​ | ​ | Target            | ​ | ​ | ​ | $15.95 (10% CAGR)       | ​ | ​ | ​ | ​                            | ​ | 100% | ​ | ​ | ​ |
| ​ | ​ | Maximum           | ​ | ​ | ​ | $20.70 (20% CAGR)       | ​ | ​ | ​ | ​                            | ​ | 200% | ​ | ​ | ​ |
| ​ | ​ | Above Maximum     | ​ | ​ | ​ | Above $20.70 (20% CAGR) | ​ | ​ | ​ | ​                            | ​ | 200% | ​ | ​ | ​ |

In establishing the appropriate level of equity to our executive officers, the compensation committee considered the market information provided by Aon as well as the Company’s 2024 financial outlook,

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opportunities, and Company performance. The goal is to provide an adequate equity incentive to motivate our critical leadership while aligning management interest with stockholder’s interests and expectations. In light of these considerations, the compensation committee made some slight increases in equity awards to our NEOs in 2024 as compared to 2023. In April 2024, the compensation committee approved the amounts for awards of RSUs to be granted to the NEOs pursuant to this approach as follows:

| ​ | ​ | Named Executive Officer    | ​ | ​ | ​ | Time-VestingRestricted Stock Units* |   |           |   | ​ | ​ | ​ | Target AmountPerformance-VestingRestricted Stock Units* |   |           |   | ​ | ​ | ​ | Total Value atTarget Performance |   |           |   | ​ | ​ |
|:--|:--|:---------------------------|:--|:--|:--|:------------------------------------|:--|----------:|:--|:--|:--|:--|:--------------------------------------------------------|:--|----------:|:--|:--|:--|:--|:---------------------------------|:--|----------:|:--|:--|:--|
| ​ | ​ | Chih-Hsiang (Thompson)