Company: UFPT
Filing Date: 2025-04-30
Form Type: DEF 14A
Source: 0001171843-25-002638
Chunk: 21

Company: UFP TECHNOLOGIES INC
Filing Date: 2025-04-30
Form: DEF 14A
Chunk 21
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 of our business; |

| • | Safeguard our interests and those of our stockholders; |

| • | Drive executive performance by having certain components of pay at risk and/or tied to our entity-wide and individual goal performance; |

| • | Be fair to employees, management and stockholders; and |

| • | Be well communicated and understood by program participants and stockholders. |

The Compensation Committee believes that the most effective compensation program is one that provides a reasonable level of fixed income through competitive base salaries, equity grants and retirement benefits as well as additional rewards for achieving performance targets. The Compensation Committee also believes that these rewards should be in the form of both cash and non‑cash and have some component subject to time‑based vesting as a retention measure. Incentive cash bonuses are included to drive executive performance by having pay at risk so that a significant portion of potential annual cash compensation is tied to profitability targets. We also include time-based and time- and performance‑based restricted stock unit awards as a significant element of executive compensation, so that the value of a portion of an executive’s compensation is dependent upon both continued, long-term employment and company‑wide performance measures.

Our Decision‑Making Process

The Role of the Compensation Committee—The Compensation Committee oversees the compensation and benefits programs for the named executive officers. The Compensation Committee is comprised solely of independent directors of the Board. The Compensation Committee works closely with management to examine the effectiveness of our executive compensation program. Details of the Compensation Committee’s authority and responsibilities are specified in the Compensation Committee Charter, which is available at our website,www.ufpt.com/investors/governance.html.

The Role of Management—The Chief Executive Officer makes recommendations to the Compensation Committee about the compensation of our other named executive officers. The Compensation Committee considers the Chief Executive Officer’s recommendations before making a final determination of the compensation programs for the named executive officers. The Chief Executive Officer and the other named executive officers may not be present during voting or deliberations on his or her compensation.

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In 2022, the Compensation Committee engaged Aon, a national compensation consulting firm, to perform a comprehensive comparative market study of the compensation programs offered to peer company executives and directors, and to provide recommendations on the Company’s executive compensation. The Compensation Committee used this information to evaluate and adjust executive and director compensation for fiscal 2024. The competitive assessment done by Aon included a survey of the following 12 companies:

| • | Accuray, Inc.            | •