Company: TH
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0001104659-25-032818
Chunk: 33

Company: Target Hospitality Corp.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 33
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 financial performance and long-term strategic objectives. Executives are motivated to make decisions that drive immediate shareholder value while also strategically positioning the Company for sustained growth and success. ■ Holistic Performance Evaluation : The dual focus on relative TSR and Diversification EBITDA diversification ensures a comprehensive evaluation of executive performance. This approach aligns with the Compensation Committee’s commitment to rewarding executives for achieving a well-rounded set of financial and strategic goals that contribute to the Company’s overall success. 2022 PSU Outcome For the 2022-2024 performance period, the PSUs awarded in February of 2022 (the “ 2022 PSUs ”) were earned based on the Company’s cumulative operating cash flow during the performance period, as determined based on the Net Cash Flow from Operations disclosed in the Company’s annual Form 10-K filings during the performance period. The award level was determined based on the following table:

| ​ | Level      | ​ | ​ | 3-Year Cumulative Operating Cash Flow($ millions) | ​ | ​ | Payout %(1)          | ​ |
| ​ | Maximum    | ​ | ​ |                                   $352.8M or more | ​ | ​ | 150% of Target Level | ​ |
| ​ | Target     | ​ | ​ |                                              $252 | ​ | ​ | 100% of Target Level | ​ |
| ​ | Threshold  | ​ | ​ |                                              $189 | ​ | ​ | 50% of Target Level  | ​ |
| ​ | <Threshold | ​ | ​ |                                           $<$189M | ​ | ​ | 0%                   | ​ |

(1) Any payment will be based on linear interpolation between threshold, target, and maximum award Levels. At the end of the performance period, the Compensation Committee conducted an evaluation of the Company’s performance against the established metrics. The increase in the Company’s operating cash flow in 2022 and 2023 led to exceptional financial performance for the performance period, including: ■ Strong Revenue Growth : The Company experienced robust revenue growth driven by increased demand for its services and successful expansion and growth in the Government segment. ■ Cost Management : Effective cost management strategies were implemented, resulting in improved operational efficiencies and reduced expenses. ■ Strategic Investments : Strategic investments in infrastructure enhanced the Company’s capabilities and supported its growth initiatives. ■ Customer Retention : High customer retention rates and the acquisition of new clients contributed to the overall financial performance. These factors collectively led to the exceptional financial performance, culminating in the maximum achievement