Company: HFFG
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001680873-25-000022
Chunk: 35

Company: HF Foods Group Inc.
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 35
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 shareholder value. 50% granted as RSUs and 50% granted as PSUs. 
 RSUs vest based on continued employment through vesting date or earlier vesting as specified.                                          
 PSUs vest based on attainment of specified goals.                                                                                      |     | For PSUs:                                                                                                                                                                 
 •Revenue (50%)                                                                                                                                                            
 •Internal Adjusted EBITDA (50%)                                                                                                                                           
 •The Compensation Committee has the ability to adjust payout based upon management’s achievement of significant milestones within the Company’s long-term strategic plan. |     | 3-year performance period |     | 36%                           |

(1) This column reflects the base salary at the end of 2024 and so takes into account the increase in base compensation to $675,000 for Mr. Zhang and to $495,000 for Mr. Lin during the 2024 year and the increase in the target for the Annual Incentive Plan for Mr. Zhang during 2024 from 100% to 125%.

(2) For its target objectives, the Company used an internal adjusted EBITDA (“Internal Adjusted EBITDA”) which added back certain advisory fees and costs associated with the SEC investigation, indemnification of former officers and directors, and CFO replacement expenses.

#### Executive Compensation Process
Role of Compensation Committee

The Compensation Committee assists the Board in determining the compensation of the CEO and other NEOs, reviewing the Company’s compensation and benefit programs and making recommendations to the Board with respect to non-executive officers and independent directors. The Compensation Committee, among other responsibilities, oversees the Company’s incentive compensation and equity-based plans and policies and fulfills other responsibilities as set forth in the Compensation

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Committee Charter. The Compensation Committee has the authority to retain or obtain the advice of a compensation consultant, legal counsel or other advisor in its sole discretion. During fiscal year 2024, the Compensation Committee retained the services of an independent executive compensation consultant, Pay Governance.

Role of CEO in Compensation Decisions

The CEO does not attend portions of the Compensation Committee and Board meetings during which his performance is being evaluated and his compensation determined. The CEO provides recommendations to the Compensation Committee on the compensation and performance of other NEOs.

#### Key Elements of Compensation
When compensation decisions for 2024 were made in 2023, we did not use a prescribed formula to establish pay levels. Rather, the Compensation Committee considered changes in the business, external market factors and the Company’s financial position when determining pay levels