Company: IPGP
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001111928-25-000023
Chunk: 148

Company: IPG PHOTONICS CORP
Filing Date: 2025-02-20
Form: 10-K
Item: Item 11
Chunk 148
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 Incentives: Incentive programs provide an appropriate balance of annual and long-term incentives and include multiple measures of performance.

•Use Long-Term Incentives to Link Executive Pay to Company Performance: Over half of NEO pay consists of long-term incentives.

•Cap Annual Incentive Compensation.

•Annual Risk Assessment of Compensation Program.

•Independent Compensation Consultant: The Compensation Committee retains a compensation consultant, who is independent and without conflicts of interest with the Company.

•Stock Ownership Requirements: Officers and directors are subject to stock ownership guidelines to further align their interests with those of our stockholders.

•Clawbacks on Executive Compensation: We maintain a compensation recovery policy covering cash and equity.

•Anti-Pledging Policy and Anti-Hedging Policy Applicable to Executives and Directors.

Practices We Avoid

•No Guaranteed Annual Incentive Plan Bonuses: Our annual incentive compensation plan is performance-based and does not include any minimum payout levels.

•No Excise Tax Gross-Ups: We do not provide excise tax gross reimbursements for change in control payouts.

•No Excessive Perquisites: We provide limited perquisites to our NEOs.

•No Single-Trigger Change in Control Payments or Benefits. Severance and equity acceleration for NEOs generally require a “double-trigger” of both a change-in-control and qualifying termination of employment.

•No Stock Option Repricing without Stockholder Approval. Our equity plans prohibit repricing underwater stock options.

•No Supplemental Executive Retirement Plans, Executive Pensions or Excessive Retirement Benefits.

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Table of Contents

Stockholder Feedback

At our 2024 annual meeting of stockholders, our stockholders overwhelmingly approved our executive compensation structure in a “say-on-pay” advisory vote, with over 96% of votes cast in favor of our executive compensation structure. After considering the results of the 2024 vote, the Compensation Committee determined to maintain its general pay philosophy and practices. Proposal 2 described herein is the "say-on-pay" advisory vote.

2024 Compensation of Named Executive Officers

Our Business and Our Compensation Philosophy

The guiding principles of our executive compensation philosophy and practices continue to be pay-for-performance, accountability for annual and long-term performance, alignment to stockholders’ interests and providing competitive pay to attract and retain executives. We believe our compensation program strikes the appropriate balance between utilizing responsible, measured pay practices and effectively incentivizing our executives to dedicate themselves fully to value creation for our stockholders.

Our executive compensation program is designed to focus