Company: HEI-A
Filing Date: 2025-01-31
Form Type: DEF 14A
Source: 0001140361-25-002543
Chunk: 38

Company: HEICO CORP
Filing Date: 2025-01-31
Form: DEF 14A
Chunk 38
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 factors which we and they believe to be important, such as cash flow, net income, profits and margins, company culture, product line breadth and long-term focus. When we consider the benchmark data, we believe that our executive management team should be compensated in the higher percentile of companies reviewed because of the factors discussed above in this CD&A. The Committee continues to reserve discretion on whether or not to utilize and interpret the benchmark data. We also note that benchmark data can be flawed due to circumstances unique to other companies in a “peer group” and because there are no companies which exactly match the total mix of HEICO’s products, size and financial characteristics. The correlation between our Co-Presidents’ total reported compensation and our Chief Executive Officer’s total reported compensation varies by year. The largest changes typically relate to stock-option issuance. For example, in fiscal 2023 the Co-Presidents’ total compensation was closer to the Chief Executive Officer’s compensation than in fiscal 2024 and fiscal 2022 due to larger stock option grants in fiscal 2023. Fiscal 2024 was a more typical year. The Compensation Committee notes that it believes HEICO’s success has been largely driven by the atypical manner in which the company is managed. In short, HEICO doesn’t seek to follow the crowd, but is managed to do better than a typical publicly-held company—and it has succeeded in its outperformance. This entrepreneurial approach involves these three officers managing the Company together, often interchangeably, for decades, with our Team Members, customers, shareholders and others working extensively with the three officers—both individually and collectively—since their involvement with HEICO commencing over 35 years ago. The Compensation Committee wishes to recognize this cooperative management approach and the significant roles the Co-Presidents play and have played in HEICO’s outsized growth over decades. This may sometimes mean that the Co-Presidents’ total compensation will be closer to the Chief Executive Officer’s compensation than at other companies. Base Salary The Committee determines base salary by considering:

| ▪ | Growth in our sales, income and cash flow |

| ▪ | Historical pay levels |

| ▪ | Our business’s complexity |

| ▪ | The benchmark analyses previously discussed |

| ▪ | The need to offer a fair and competitive base salary versus other income opportunities which executives might have |

| ▪ | We also consider the fact that there are other elements in compensation which the Company does not offer to our executives and the compensation elements we do offer which are discussed below (