Company: CRL
Filing Date: 2025-04-02
Form Type: DEF 14A
Source: 0001104659-25-030908
Chunk: 46

Company: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filing Date: 2025-04-02
Form: DEF 14A
Chunk 46
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 units (RSUs), which vest over four years (except in limited circumstances when special awards are granted). Restricted stock/RSUs are intended to comprise approximately 20% of the intended value of long-term equity incentive awards provided to officers in any fiscal year (with the exception of Mr. Foster, who does not receive any RSUs). • No 280G Excise Tax Gross-Ups. For the limited number of our executives with whom we have change-in-control agreements (which includes each of our named executives), these agreements do not allow for any “gross-up” payment by the Company of any of the excise taxes imposed by Section 4999 of the Internal Revenue Code due to “golden parachute” payments. • Clawback Policy. We maintain a Financial Statement Compensation Recoupment Policy (also known as a Clawback Policy) that complies with NYSE listing standards and Section 10D of the Securities Exchange Act of 1934. This policy applies to all of our executive officers. Under this Clawback Policy, in the event of a restatement of Charles River’s financial statements resulting from material noncompliance with financial reporting requirements under the U.S. Federal securities laws, Charles River will recover erroneously awarded compensation from applicable executive officers, subject to specified criteria. 38 • Inclusion of “double-trigger” vesting in our recent equity compensation plans. Our 2018 Incentive Plan includes “double-trigger” vesting provisions that provide for accelerated vesting only upon both the occurrence of a change of control and a qualifying termination of employment within a reasonable period following the change in control. • Perquisites. We offer no significant perquisites or cash equivalents. • Stock Ownership. Stock ownership guideline for the CEO is 6 times base salary, and for executive officers who report to the CEO is 3 times base salary. We believe that all of these aspects of our Program are appropriate in light of, and consistent with, economic and market environments, our financial performance, the corporate actions taken, and executive compensation trends. Furthermore, our focus on near term financial and operational objectives properly align management’s incentives with the interests of our shareholders. Notwithstanding the strong majority vote of approval for our executive compensation program in 2023, we have embraced the idea of continuing outreach with our shareholders, particularly for corporate governance and executive compensation issues. In the winter of 2024, we reached out to our largest 25 shareholders (which included shareholders holding more than 60% of our outstanding stock) and inquired whether it would be