Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 203

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 6
Chunk 203
---
 to specified terms and conditions set forth in the Administrative Trust, the acquired shares are held in escrow under the Administrative Trust for its administration until the vesting period date for each key employee, when such key employee can fully dispose of the shares as desired.
 The share purchase plan provides that if the terms and conditions are not met by the vesting period date, then the shares will be sold in the Mexican Stock Exchange, and Servicios Corporativos would be entitled to receive the proceeds of the sale of such shares.
 Each key employee’s account balance is tracked by the Administrative Trust. The Administrative Trust objectives are to acquire Series A shares on behalf of the key employees and to manage the shares granted to such key executive based on instructions set forth by the Technical Committee.
 As the Administrative Trust is controlled and therefore consolidated by Controladora, shares purchased in the market and held within the Administrative Trust are presented for accounting purposes as treasury stock in the consolidated statement of changes in equity.
 In November 2022, 2023 and 2024 allocations to this plan were approved by our board of directors. The total cost of the allocations approved were U.S. $5.7 million (U.S. $3.7 million net of withheld taxes), U.S. $ 5.7 million (U.S. $3.7 million net of withheld taxes), and U.S. $5.8 million (U.S. $3.8 million net of withheld taxes). Under the terms of the incentive plan, certain of our key employees were granted a special bonus that was transferred to the administrative trust for the acquisition of our Series A shares.
 During 2022, 2023 and 2024 we recognized U.S. $5.1 million, U.S. $6.0 million and U.S. $6.3 million, respectively, as compensation expense associated with the long-term incentive plan in our consolidated statements of operations.
 During the year ended December 31, 2022, 2023 and 2024, some key employees left the Company; therefore, these employees did not fulfill the vesting conditions. In accordance with the plan, Servicios Corporativos, the Company and Volaris Opco are entitled to receive the proceeds of the sale of such shares. As of December 31, 2022, 2023 and 2024, 103,712 shares, 330,453 shares, 0 shares, respectively, were forfeited. As of December 31, 2022, 2023