Company: HCKT
Filing Date: 2025-03-21
Form Type: DEF 14A
Source: 0000950170-25-043233
Chunk: 26

Company: HACKETT GROUP, INC.
Filing Date: 2025-03-21
Form: DEF 14A
Chunk 26
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 of the vesting period. This rewards employees for increasing shareholder value. A heavier weighting on the incentive equity component ties a greater portion of the Company’s CEO and COO’s ultimate compensation to the ability to deliver increased shareholder value over the vesting period. To further ensure the alignment of the CEO’s interests with those of the

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Company’s shareholders, the Board has adopted stock ownership guidelines that require the CEO to own a number of shares equal in value to six times his annual base salary. The CEO is currently in compliance with these guidelines.

In September 2024, the Compensation Committee approved the Stock Price Award Program which included a one-time grant of performance-based restricted stock unit awards to the Company’s named executive officers, and eight other employees, under the Plan. The Stock Price Award Program is designed to incentivize long-term out-performance of the Company’s stock price, aligning the executives’ interests with those of the Company’s stockholders while taking into account the Company’s need to aggressively pivot its capabilities to support Gen AI-related consulting and implementation services and pursue the development of or acquisition of Gen AI software platforms and related capabilities to support and differentiate its offerings. Additionally, the annual equity incentive award opportunities for the named executive officers during the performance period of the Stock Price Award Program will be reduced by 50%, as compared to the annual equity incentive award opportunities in the Company’s executive compensation program for 2024 for compensation years 2025 through 2028 even if the performance hurdles are achieved earlier than that.

The Stock Price Award Program was specifically targeted to key executives that would meaningfully contribute to the execution of the strategic pivot to Gen AI Consulting services. It also included the development of AI XPLR, a Gen AI assisted platform that is expected to accelerate and/or enhance the strategic value intended by Gen AI solutions identified. These offerings have the potential to drive higher margin and annually recurring revenue. This strategy did not include any outside advisers, it was led by the CEO who developed the strategy and co-led the design of AI XPLR. He also identified and negotiated the acquisition of LeewayHertz and the creation of the joint venture that will focus on integration of the AI XPLR and ZBrain software platforms. This was all accomplished with a very efficient cash and equity structure which required no outside debt, and the only equity used was for restricted stock units to ensure the seller of LeewayHertz had the appropriate retention incentive. Additionally, the Gen AI-related revenue and profitability were meaningful to the