Company: NSSC
Filing Date: 2025-10-24
Form Type: DEF 14A
Source: 0001140361-25-039260
Chunk: 13

Company: NAPCO SECURITY TECHNOLOGIES, INC
Filing Date: 2025-10-24
Form: DEF 14A
Chunk 13
---
. The following describes the general purpose of each element of compensation and how the Committee made fiscal year 2024 pay decisions from such element. Base Salaries . Base salaries are used to compensate each of our executives for their positions and levels of responsibility. Each of Messrs. Soloway, Carrieri and Vuono have employment agreements, which provide for a minimum base salary and, in the case of Mr. Soloway, a minimum annual cost-of-living adjustment. For fiscal 2025, Messrs. Soloway, Carrieri’s and Vuono’s salaries were determined pursuant to such Employment Agreements.

11

Each of Mr. Buchel’s and Mr. Spinelli’s salary for the 2025 fiscal year was in an amount recommended by the CEO and approved by the Committee. The considerations entering into the determination by the CEO of the salary recommendation for each of Mr. Buchel and Mr. Spinelli were the CEO’s subjective evaluations of the ability and past performance of Mr. Buchel, and Mr. Spinelli and the CEO’s judgment of their potential for enhancing the Company’s profitability. With regard to Mr. Buchel, the additional responsibilities he assumed as President and Chief Operating Officer played a significant role in determining his base salary. Annual Cash Incentives . The Committee’s policy is that named executive officers, should receive short term incentive compensation in the form of bonuses based on recommendations by the CEO (other than for the CEO) who may base such determinations on targets established for the named executive officers or on their contributions to the Company’s profitability. Long-term Incentive Awards . The purpose of the granting of stock options is to retain the services of the named executive officers and our key employees and encourage them to improve our operating results and to become shareholders of the Company, all of which is intended to result in increased shareholder value. The Committee’s policy is generally to grant options to the named executive officers other than the CEO under the Company’s Stock Option Plans after consideration of the amounts recommended periodically by the CEO. The recommendations of the CEO for option grants reflect the subjective judgment of the CEO of the performance of such executives and the potential benefit to the Company from the grant of this form of incentive compensation. Generally, options vest 20% on grant and 20% on each anniversary date of grant provided the executive officer is still with the Company at the time of vesting. The Committee generally determines the CEO’s bonus and Incentive Awards following discussions between the Committee Chairman and the CEO. Employee Benefits, Per