Company: LGIH
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001580670-25-000028
Chunk: 57

Company: LGI Homes, Inc.
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 57
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 |     |      |
| Eric Lipar              |     |                                         |     | 125% |
| Michael Snider          |     |                                         |     | 100% |
| Charles Merdian         |     |                                         |     | 90%  |
| Scott Garber            |     |                                         |     | 60%  |

(1) These values were unchanged from 2023.

The total Annual Bonus payment to be earned by each participating NEO was based (i) 75% on the pre-tax net income during 2024 as compared to target and (ii) 25% on the number of home closings during 2024 as compared to the target. The payouts could range from 0% - 200% of the target annual bonus amount depending on the results achieved as compared to the threshold, target, and maximum for each measure, calculated and awarded independently, such that one portion of the award may be earned even if the threshold level of performance for the other measure is not achieved. The performance targets and payout terms applied to each NEO based on the Compensation Committee’s determination that each is integral to the overall success of the Company.

Pre-tax net income and home closings performance measures and weightings have been used consistently for the Annual Bonus Plan since 2014. In order to set a meaningful target, threshold, and maximum for each performance measure, the Compensation Committee analyzed and considered the Company’s growth projections, expected absorption pace by market, lot development schedule, the Company’s performance relative to its peer group and the current economic climate. Pre-tax net income and home closings have been published by the Company since 2014 as key measures of our performance. The Compensation Committee believes that they are an appropriate and balanced method for evaluating the success of management and the Company.

In measuring the Company’s performance with respect to these financial metrics under the 2024 Annual Bonus Plan, the Compensation Committee had, in its sole discretion, the authority to make equitable adjustments in recognition of unusual or non-recurring events affecting the Company or its financial statements. No such adjustments were made for 2024.

The threshold, target and maximum performance goals, the weighting for the performance metrics, and the payout rate for the 2024 annual bonus, as well as actual fiscal 2024 performance, are as follows (dollars in thousands):

| 2024 Performance Metric (weighting) |     | Threshold |         |     |     | Target |         |      |     | Maximum |         |      |