Company: THRM
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001140361-25-010582
Chunk: 37

Company: Gentherm Inc
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 37
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2024 was 200% of target bonus. In 2024, the Committee approved revisions to the incentive plan to reduce the number of performance metrics within the annual incentive plan and between the annual incentive plan and the long-term incentive program. The three performance goals pay out independently, each with a payout at threshold (50%), target (100%) and maximum (200%), and interpolation for achievement in-between. 63 | 2025 PROXY STATEMENT

COMPANY PERFORMANCE METRICS (80% WEIGHTED). The two financial performance metrics reflect the Company’s focus on overall sales growth, strong margins and profitable operations.

| ($ In Millions) |

| Metric | Weight(%) | Rationale | Period | Threshold(50% Payout) | Target(100% Payout) | Maximum(200% Payout) | PreviousYear Actual Unadjusted |

| Adjusted  
 EBITDA(1) | 40 | Supplemental measure of the Company’s operational performance | Full year goal | $168.0 | $187.0 | $208.0 | 2023: $180.7 |

| Revenue | 40 | Measures management’s ability to grow the top line | Full year goal | $1,469.0 | $1,500.0 | $1,600.0 | 2023: $1,469 |

| (1) | Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, deferred financing cost amortization, non-cash stock based compensation expenses, and                                                      
 other gains and losses not reflective of the Company’s ongoing operations and related tax effects, including transaction expenses, debt retirement expenses, impairment of assets held for sale, impairment of goodwill, gain or loss on 
 sale of business, restructuring expense, net, unrealized currency gain or loss, and unrealized revaluation of derivatives. For a reconciliation of Adjusted EBITDA to net income, see our earnings release for the fourth quarter and    
 full year ended December 31, 2024 furnished as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed with the SEC on February 19, 2025.                                                                                         |

COMPANY FINANCIAL PERFORMANCE IN 2024. The Company’s achievement of the 2024 performance goals and the resulting payout for such weighted factor is set forth below.

| – | Adjusted EBITDA (40% weighting) was $193.9 million, which corresponded to achievement between target and maximum,