Company: HGBL
Filing Date: 2025-04-22
Form Type: DEF 14A
Source: 0000950170-25-056713
Chunk: 34

Company: Heritage Global Inc.
Filing Date: 2025-04-22
Form: DEF 14A
Chunk 34
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3 million in 2023 and $6.5 million in 2024. The change in compensation actually paid to our named executive officers year over year generally reflects cash bonuses for the achievement of annual corporate and strategic objectives.

Compensation Actually Paid and Cumulative Total Stockholder Return The amount of compensation actually paid to our PEO and the average amount of compensation actually paid to our non-PEO NEOs decreased from 2023 to 2024, as did the Company's total stockholder return. We utilize several performance measures to align executive compensation with the Company’s performance, but historically have not used financial performance measures such as total shareholder return. As described under the Narrative to Summary Compensation Table section of this Proxy Statement, part of the compensation our NEOs are eligible to receive consists of annual performance based cash bonuses and equity awards that are designed to provide appropriate incentives to our executives to achieve defined annual corporate goals. The Board believes that the key performance measurement is operating income growth and we align our payment of incentives to our NEOs based on this metric, which the Company believes is the primary driver that would impact the Company’s enterprise valuation and therefore, ultimatel y, total stockholder return.

Compensation of Directors

Effective July 1, 2024, the Compensation Committee recommended and the Board approved an updated director compensation plan (the “2024 Director Compensation Plan”). Pursuant to the 2024 Director Compensation Plan, each director who is not an employee of the Company receives an annual cash retainer of $50,000, an increase of $25,000, and a grant of 20,000 shares of restricted common stock vesting 25% every three months for one year, which is in increase of 5,000 shares. In addition, the Chairman of the Board receives a cash retainer of $75,000, which remains unchanged, and the Chair of the Audit Committee receives a cash retainer of $75,000, an increase of $15,000. Audit Committee members who are not the Chair receives a cash retainer $7,500, compared to the prior plan which granted each such Audit Committee member a cash retainer of $5,000 plus $1,000 for each meeting attended, Other committee chairpersons receive a cash retainer of $15,000, an increase of $9,000, and other non-chair committee members will receive a cash retainer of $7,500, an increase of $4,500.

From January 1, 2024 to June