Company: MGRC
Filing Date: 2025-04-22
Form Type: DEF 14A
Source: 0000950170-25-056711
Chunk: 42

Company: MCGRATH RENTCORP
Filing Date: 2025-04-22
Form: DEF 14A
Chunk 42
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 companies against which we compete for recruiting and retaining executives and independent non-employee directors. The peer group serves as a basis for which the Compensation Committee considers an analysis of market competitive pay for all of the Company’s executive officers in comparison to peers when determining pay levels for target compensation. The peer group also serves as an informative source determining competitive practices relative to pay design and governance practices. In selecting the Compensation Peer Group, the Compensation Committee also sought to comply with best-practice parameters by including companies in a similar industry or geography and with similar financial metrics, such as revenue, market capitalization, and total assets. The Compensation Committee generally reviews total compensation and considers it compared to the Compensation Peer Group.

Other factors were also taken into consideration when determining executive officer compensation levels, including:

Divisional size (revenues or earnings) contribution to Company-wide results relative to other divisions.

Divisional business complexity relative to other divisions of the Company.

Stature/experience/length of service of executive officer in role relative to market comparisons.

Geographic location of executive officer and relative market comparisons.

Definition and extent of responsibilities of executive officer role by the Company versus peer group sources.

Divisional leadership transition or new business initiatives.

Appropriate weighting or relativeness of different peer group sources.

Other factors the Compensation Committee may deem appropriate.

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The companies comprising the 2024 Compensation Peer Group are as follows:

| Air Lease Corporation              | Air Transport Services Group, Inc. | Badger Meter, Inc.                        |
| Cohu, Inc.                         | Custom Truck One Source, Inc.      | Enerpac Tool Group Corporation            |
| Form Factor, Inc.                  | GATX Corporation                   | H&E Equipment Service, Inc.               |
| Harmonic, Inc.                     | Herc Holding Inc.                  | Kratos Defense & Security Solutions, Inc. |
| Montrose Environmental Group, Inc. | Stem, Inc.                         | Transcat, Inc.                            |
| Triton International LTD           | UniFirst Corporation               | WillScot Mobile Mini Holdings Corporation |

In connection with Semler Brossy’s review of non-employee director and executive compensation in 2024, the Company reviewed the Compensation Peer Group and determined to remove Triton International LTD from the Peer Group companies for 2025, as the company was acquired. Process of Setting and Approving Executive Compensation; Role of Chief Executive Officer The Compensation Committee approves annual compensation levels and equity awards to all of our executive officers. The process is described below: