Company: THRM
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001140361-25-010582
Chunk: 48

Company: Gentherm Inc
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 48
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305,867 (30% of his 2024 base salary, based on the Committee’s determination of 132.9% payout of Adjusted EBITDA for 2024, aligned the approved payout for the 2024 Senior Level Bonus Plan) and the $26,497 of employer contributions noted above. 2025 INITIAL COMPENSATION DECISIONS 2025 Senior Level Bonus Plan And Equity Award Design In 2025, the Committee approved revisions to the incentive plans that continue the journey of balancing shareholder interest in an environment of continued macroeconomic, geopolitical and industry volatility. The changes outlined below allow the management team to focus on core financial metrics that bring shareholder value over the short- and long-term. The 2025 Senior Level Bonus Plan includes three performance goals that pay out independently, each with a payout at threshold (50%), target (100%) and maximum (200%), and interpolation for achievement in between, with the following weighting:

| - | Adjusted EBITDA (50% weighted)– increased weighting from 40% in 2024 |

| - | New Business Wins, or bookings (30% weighted)– new metric replacing prior revenue metric. Reported to shareholders on a quarterly basis in                                                                                
 the Company’s SEC filings and, beginning with the first quarter of 2025, represents the lifetime sales of awards during the fiscal year for the automotive business, orders obtained within the plan year for the medical 
 business, and adjacent market growth, inclusive of conquest awards on our core technology platforms in other industries                                                                                                   |

| - | Adjusted Free Cash Conversion (20% weighted)– new metric replacing the prior strategic metrics for executive management. Defined as cash                                                                                        
 flow from operating activities (excluding cash restructuring costs and one-time non-operational matters) plus proceeds from asset sales less CAPEX, divided by Adjusted EBITDA as defined and calculated within the annual plan |

71 | 2025 PROXY STATEMENT

The PSU program in 2025 includes two performance goals that payout independently, each with a payout at threshold (50%), target (100%), and maximum (200%), and interpolation for achievement in between, with the following weighting:

| - | Annual and three-year growth in three-year Adjusted EBITDA Margin (75% weighting) – no change compared to 2024 |

| ■ | Goals are set and measured each year using a constant growth methodology over three years (with 25% weighting for 2025, 2026, and 2027 and a pre