Company: VRT
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001193125-25-094674
Chunk: 43

Company: Vertiv Holdings Co
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 43
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 cash flow, both of which help us to maintain our focus on improving Vertiv’s operational execution and financial performance and driving stockholder value, while also recognizing our overall performance, segment and regional performance, and individual contributions to our long-term goals.

| • |     | Financial Performance Goals. In early 2024, the Compensation Committee approved Adjusted Operating Profit (“AOP”) and Adjusted Free Cash Flow (each as defined below) as corporate financial metrics (and, where applicable, for regions and segments) for purposes of bonuses under the VIP. At that time, the Compensation Committee determined that it was also appropriate to retain the ability to take into account individual and other business performance measures in approving the final individual payout level. |

| • |     | Corporate Financial Performance Results. In early 2025, the Compensation Committee reviewed our financial results against the previously approved financial metrics established for purposes of the 2024 VIP and against our prior year’s performance in determining an overall corporate result of 125%. |

| • |     | Results Significantly Above Challenging Targets. As shown in the table on the following page, our corporate AOP results of approximately $1,552 million and Adjusted Free Cash Flow of approximately $1,135 million significantly exceeded the target levels for each metric set for purposes of the VIP, which had been set as very challenging goals exceeding our 2023 actual performance levels, which were our highest results to date. |

| • |     | Results Exceeding Prior Year Results. Our results for 2024 reflected tremendous improvement over 2023, resulting in a year over year increase of approximately 47% in AOP and 46% in Adjusted Free Cash Flow. |

| • |     | Other Financial Performance Considerations. The Compensation Committee also reviewed our historic financial performance, including a significant increase in backlog at year end 2024, and a year over year increase of approximately $1,149 million in net sales and approximately $1.08 in adjusted diluted earnings per share, as well as transformative operational execution and growth in our business as described above under “2024 Summary-Financial Results” above. |

| • |     | Segment Financial Performance Results. For our NEOs other than the CEO, the Compensation Committee also reviewed the performance of the individual’s segment (that is, region, function or lines of business) where they have responsibility. For Mr. Sanghi, a portion of his bonus reflected how the relevant region (the Americas) performed relative to the same types of