Company: NEOG
Filing Date: 2025-09-12
Form Type: DEF 14A
Source: 0000950170-25-114381
Chunk: 28

Company: NEOGEN CORP
Filing Date: 2025-09-12
Form: DEF 14A
Chunk 28
---
 including disclosure of performance metrics, goals, and rationale for metric inclusion. Neogen will continue to monitor disclosure so that we do not put ourselves at a competitive disadvantage. We implemented a robust ICP design for fiscal year 2025 that aligned with our fiscal year budget and held our executives to a high standard of performance. Our fiscal year 2026 design will continue to align with the approved fiscal year 2026 budgets that are appropriately challenging and motivating for our NEOs given the markets in which we compete in.                               
 While we believe stock options, which were 70% of the equity mix for the CEO (60% for other NEOs), are inherently performance-based and 100% aligned with shareholder value, we are introducing Performance Share Units (PSUs) in the fiscal year2026 long-term plans for NEOs.  The fiscal year 2026 PSU design will measure performance against Revenue (CAGR), Adjusted EBITDA margin expansion, and FCF Conversion with a relative TSR modifier (measuring performance against the S&P600 Healthcare Equipment & Services peer companies) over a three-year period. The fiscal year 2026 LTIP mix for NEOs will be entirely performance-based and aligned with shareholder interests, comprised of 50% PSUs and 50% stock options. 
 The CEO compensation remained flat for fiscal year 2025, and in fact realized pay decreased as depicted on page 29. Additionally, it was announced in April 2025 that Mr. Adent would be stepping down as CEO upon the earlier of his successor starting in the role or the end of October 2025. Mr. Adent subsequently stepped down as CEO when his successor, Mr. Nassif, joined the Company on August 11, 2025.                                                                                                                                                                                                                                                                                                                     |
|:---------------------------------------------------------------------------------|:----|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CEO absolute pay vs. TSR is misaligned                                           |     | As depicted on page 29, realized pay for our CEO has been significantly lower than total compensation as disclosed in the summary compensation table (SCT). Over the past three fiscal years, Mr. Adent’s overall compensation ranged from 18% to 24% of total SCT total compensation. This is due to all elements of variable pay resulting in payouts less than target, including stock option values that are “underwater” which demonstrates direct alignment with TSR.                                                                                                                                                                                                                                                            |

| Neogen Corporation | 2025 Proxy Statement | 28 |

#### Compensation Discussion and Analysis