Company: HEI-A
Filing Date: 2025-01-31
Form Type: DEF 14A
Source: 0001140361-25-002543
Chunk: 35

Company: HEICO CORP
Filing Date: 2025-01-31
Form: DEF 14A
Chunk 35
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XY STATEMENT |

TABLE OF CONTENTS

Thus, the Committee focuses on the following three clear objectives

| ▪ | Compensate our executives fairly |

| ▪ | Motivate our executives to honestly and ethically grow our Company’s profits, cash generation, revenues, and market capitalization over time, not just in the short term |

| ▪ | Retain our executives and have the ability to attract the new ones as needed |

Compensation Approach Details

| ▪ | Follow a “common sense” approach to compensating our executives |

| ▪ | Not based on theory or ornate concepts derived from academic study |

| ▪ | Derived from the Committee members’ many years of actual business and practical experience in which they had to design compensation for their own employees |

| ▪ | This approach and historical judgment have been very successful for HEICO, with the Company experiencing significant growth over a very long period and usually meeting its shorter-term goals each year |

| ▪ | Both long and short-term performance are important |

| ▪ | The Committee applied the same judgment in 2024 as in prior years |

HEICO’s success and the Committee members’ continuous interaction with the named executive officers are overriding factors in the Committee’s compensation philosophy. Over approximately 34 years, the Board of Directors and Committee members worked with almost all the named executive officers and, a period in which, the Company’s sales grew from just over $26 million in fiscal 1990 to approximately $3.9 billion in fiscal 2024, while our net income from continuing operations grew from just below $2 million to approximately $514.1 million in the same period. Further, our compound annual growth rate in net sales and net income have equaled 16% and 18%, respectively, since 1990. During this time, our shareholders benefited significantly, as a $100,000 investment in HEICO stock at the time current management took over operation of the business became worth approximately $99.2 million as of October 31, 2024. Important Considerations and Important Management Characteristics During this lengthy period of strong performance, the Board of Directors and the Committee became well acquainted with each of the named executive officers and observed the following characteristics about our management team, which strengthened our trust in them and serves to confirm our judgment of how they should be compensated.

| ▪ | Loyalty to the Company, including times when such loyalty harmed the executives’ short-term personal interests |

| ▪ | For example, during downturns