Company: HEI-A
Filing Date: 2025-01-31
Form Type: DEF 14A
Source: 0001140361-25-002543
Chunk: 39

Company: HEICO CORP
Filing Date: 2025-01-31
Form: DEF 14A
Chunk 39
---
e.g., bonus and retirement/long-term compensation amounts) |

Bonus At each fiscal year’s outset, our executive officers present to the Board of Directors a financial goal or budget for the year. The Committee believes that Messrs. Mendelson (Laurans, Eric and Victor) and Mr. Macau (collectively, the “Lead NEOs”) receive a bonus equal to roughly 200% of their eligible compensation if the Company meets a budgeted, meaningful growth goal. In 2024, the bonus required 10% growth in the following financial metrics (collectively referred to as the “Financial Metrics”) for fiscal year 2024 as compared to fiscal year 2023:

| ▪ | Net income attributable to HEICO |

| ▪ | Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)* |

| ▪ | Cash flow from operating activities (“Cash Flow”) |

The Committee feels bonuses should be scaled to provide for partial payment if the minimum threshold is met but the full target is not met, so the Company’s incentive compensation plans provide for this. We also believe that a larger bonus should only be paid if the full target is exceeded; the bonus arrangement provided for such a formula along with a cap on all bonus potential. Our goal is to provide incentives to management to meet both short and long-term objectives, to be competitive with other income generating opportunities our executives might have and to treat them fairly at all times. We note that our executive officers requested that they receive no bonuses in periods where financial performance failed to meet budgeted goals, even if we grew significantly during the relevant period.

| * | Please see Annex A for a reconciliation of our non-GAAP financial measures. |

| 27 |

TABLE OF CONTENTS

Before setting targets, the Committee also reviews benchmarks and other data provided by our compensation consultants. The Committee also considers the fact that numerous other management-level employees at HEICO are offered bonus opportunities equal to 100% or more of their eligible compensation if their operations meet certain targets and the Committee likes this approach's consistency. Consistent with our prior practice, the Committee established minimum and maximum target bonus levels for four of the named executives for fiscal 2024. Our Net income attributable to HEICO, EBITDA and Cash Flow targets (collectively referred to as the “Bonus Targets”) in fiscal year 2024 were $470,677,000, $834,141,000 and $493,609,000, respectively, a 10%