Company: IPGP
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001111928-25-000023
Chunk: 149

Company: IPG PHOTONICS CORP
Filing Date: 2025-02-20
Form: 10-K
Item: Item 11
Chunk 149
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 our executive officers on both annual and long-term financial and operational performance without encouraging unnecessary risk. Approximately 76% and 79% of the total direct target compensation opportunities for our current CEO and other NEOs (average, excluding our former CEO), respectively, in 2024 was at risk. "At risk" compensation includes awards that are subject to performance conditions and/or stock price performance. Because Dr. Gitin received a new hire bonus for 2024 with a fixed payout pursuant to the terms of his employment agreement, the amount of "at risk" compensation for Dr. Gitin for 2024 was lower than is typical for our CEO.

The 2024 compensation program for our NEOs had three primary components: annual base salary, annual cash incentives and long-term equity incentives. The amounts below illustrate the average allocation of fiscal year compensation components at target for our current CEO and the average for our other NEOs (excluding our former CEO) in 2024 as a group.

The following is an overview of the primary compensation program elements for our NEOs.

Form of CompensationPerformance PeriodPerformance CriteriaObjectivesBase SalaryCEO OTHER NEOs OngoingAlignment of salary with performance is evaluated on an annual basis•Provides a competitive fixed component of cash compensation to attract and retain talented and experienced executives with the knowledge and skills necessary to achieve the Company’s strategic business objectives•Reflect scope of roles and responsibilities, contributions, skills, knowledge, experience and seniorityAnnual IncentiveCEO OTHER NEOs One yearNet sales and Adjusted EBIT•Provides variable cash compensation opportunity that rewards achievement of corporate goals, with an additional compensation opportunity based upon individual performance•Motivates achievement of short-term performance goals designed to enhance value of IPG•Foster a shared commitment among executives through establishment of uniform Company financial goalsLong-Term IncentivesCEO  OTHER NEOs  Three yearsAttainment of revenue growth and profitability targets•Rewards successful achievement of three- year performance goals designed to enhance long-term value of IPG•Intended to satisfy long-term retention objectivesVests over three yearsService-based vesting; ultimate value based on stock price performance•Rewards the creation of long-term value•Recognizes potential future contributions•Intended to satisfy long-term retention objectives

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Base Salary 

We provide base salary to our NEOs and other employees to compensate them for services rendered on a day-to-day basis during the fiscal year. Unlike annual cash incentives and long-term equity incentives, base