Company: CHEF
Filing Date: 2025-03-26
Form Type: DEF 14A
Source: 0001517175-25-000003
Chunk: 46

Company: Chefs' Warehouse, Inc.
Filing Date: 2025-03-26
Form: DEF 14A
Chunk 46
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 and based target AEBITDA on results that were improvements over the prior fiscal year’s results.

AEBITDA. For all of our named executive officers, payouts under the 2024 Plan related to AEBITDA were tiered as follows: no payout if AEBITDA in fiscal 2024 was less than $190 million, payout at target if AEBITDA in fiscal 2024 was $215 million and payout at maximum if AEBITDA in fiscal 2024 was $230 million or more, with payouts linearly interpolated between levels of achievement. Additionally, if AEBITDA in fiscal 2024 was $220 million or more, Mr. C. Pappas and Mr. J. Pappas were entitled to receive a payout under the 2024 Plan equal to 300% of their total target awards. Our fiscal 2024 AEBITDA, as determined under the 2024 Plan, was $219 million, exclusive of acquisitions.

For fiscal 2024, we defined AEBITDA, which is not a measurement determined in accordance with the U.S. generally accepted accounting principles, or GAAP, as the aggregate of the following GAAP measures: net income, interest expense, depreciation, amortization, provision for income taxes, stock compensation, duplicate rent, integration and deal costs, third party transaction costs, change in fair value of earn-out obligation, loss on asset disposal, one-time executive management costs and moving expenses, if any. We use AEBITDA, together with financial measures prepared in accordance with GAAP, such as revenue and cash flows from operations, to assess our historical and prospective operating performance and to enhance our understanding of our core operating performance. The use of AEBITDA as a performance measure permits a comparative assessment of our operating performance relative to our performance based upon GAAP results while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies.

Long-Term Equity Compensation

Other than in exceptional cases, such as promotions or new hires, equity awards for our executive officers are approved by the Compensation Committee during the first quarter of each fiscal year. Equity awards are not granted in anticipationof the release of material nonpublic information, and the Company does not timethe release of material non-public information based on the anticipated grant dates of equity awards.

During the first quarter of fiscal 2024, the Compensation Committee, in consultation with FW Cook and management, approved