Company: PENG
Filing Date: 2025-12-19
Form Type: DEF 14A
Source: 0001616533-25-000073
Chunk: 53

Company: Penguin Solutions, Inc.
Filing Date: 2025-12-19
Form: DEF 14A
Chunk 53
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 combination of cash performance incentives and equity compensation. Our pay-for-performance model strikes a balance between connecting pay to performance and attracting, retaining, and motivating our executives in an intensely competitive market and challenging macroeconomic environment. We also focused on reducing our burn rate, managing our overhang, and enhancing employee engagement. Our burn rate over the prior three years was higher than that of our peers, primarily due to stock price volatility and through investments in the business by way of new hires at key positions and acquisitions. Our gross burn rate for fiscal 2025 is in line with fiscal 2024, which are both down from fiscal 2023 levels, despite two significant executive new hires, with accompanying equity grants, in each of fiscal 2024 and fiscal 2025. Over the longer-term, we expect a slight decrease in overhang as previously granted equity vests. And finally, we prioritized supporting employee engagement by implementing initiatives focused on employee recognition, career development, and well-being.

Fiscal 2025 Executive Compensation Structure and Mix

#### 92.38% At -Risk Pay

#### 78.67% At -Risk Pay
† These charts reflect the value of the fiscal 2025 target total direct compensation opportunity with respect to our CEO and other NEOs (excluding Mr. Frey, who commenced employment with us in fiscal 2025) as follows: (i) annual base salary for fiscal 2025, (ii) target fiscal 2025 short-term cash incentive program opportunity, and (iii) the grant date fair value of equity awards granted in September 2024.

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Our executive compensation program is built on a performance-driven culture and stockholder-focused executive compensation philosophies and objectives, as described below under “ Executive Compensation Objectives .” The following table outlines each of the principal elements of our fiscal 2025 annual executive compensation program:

|                              |     | Pay Element*                         |     |                                                                                                                                              |     |                                                                                                             |     |                                                                                                                                                                                                 |
|                              |     | Base Salary                          |     | Short-Term Cash                                                                                                                              
 Incentive                                                                                                                                    
 Compensation                                                                                                                                 |     | Time-Based RSUs                                                                                             |     | Performance-Based                                                                                                                                                                               
 RSUs                                                                                                                                                                                            |
| Recipients                   |     | All NEOs                             |     | All NEOs                                                                                                                                     |     | All NEOs                                                                                                    |     | All NEOs                                                                                                                                                                                        |
| When Granted                 |     | Annually                             |     | Annually                                                                                                                                     |