Company: PENG
Filing Date: 2025-12-19
Form Type: DEF 14A
Source: 0001616533-25-000073
Chunk: 57

Company: Penguin Solutions, Inc.
Filing Date: 2025-12-19
Form: DEF 14A
Chunk 57
---
 aligning compensation with performance incentivizes strong executive performance.

| At-Risk Executive Compensation    |     |                                                                                                                                                                         |
| Pay Element                       |     | Objectives                                                                                                                                                              |
| Performance-Based Equity Awards   |     | •Directly links compensation to relative total stockholder return goals (and in fiscal 2025, for the CEO, the compound annual growth rate of the Company’s stock price) |
| Time-Based Equity Awards          |     | •Supports executive retention by tying awards to specific timelines                                                                                                     
 •Provides an opportunity for executives to benefit from the creation of stockholder value over time                                                                     
 •Provides appropriate incentive to drive Company performance                                                                                                            |
| Short-Term Cash Incentive Program |     | •Ties fiscal 2025 performance goals to net sales and non-GAAP operating income in order to incentivize top-line growth and profitability                                
 •Fiscal 2025 performance goals are designed to be challenging but achievable, and are taken directly from the Board-approved annual operating plan                      
 •Assesses performance based on goals related to human capital and environmental stewardship, with specific, measurable metrics previously established for fiscal 2025   |

Role of the Board, the Compensation Committee, and Our Executive Officers

At least once per year, and always prior to awarding annual short-term cash incentive compensation, the CEO assesses each NEO’s performance, taking into account accomplishments, areas of strength, achievement against established executive leadership goals, and opportunities for development. The CEO bases this evaluation on his knowledge of each NEO’s performance and the individual’s self-assessment. This evaluation also includes a review of the NEOs’ collective progress on human capital and environmental stewardship matters, which is presented to the Compensation Committee and informs the CEO’s recommendations for any upward or downward adjustments to target compensation and the actual payout amount of the short-term cash incentive. For fiscal 2025, ten percent of each executive’s target bonus was subject to performance on predetermined, measurable goals rel ated to human capital and environmental stewardship. This performance is evaluated year-over-year using a scorecard approach. NEOs, including our CEO, do not propose or seek approval of their own compensation or participate in the discussion of their performance with the Compensation Committee. After considering the CEO’s recommendations and a variety of other factors outlined below, the Compensation Committee has final authority to implement any changes to the compensation of each NEO.

<div align='center'>48</div>

The CEO’s annual performance review is conducted by the Compensation Committee, which is composed of independent directors only