Table of Contents CEO and Other NEO Average Co mpe nsation by Type Pay at Risk 81% Lats Base Sala ry Annual Incentive Plan 13% @ Stock Options : Time-based RSUn 29% at @ Porformance-contingent RSUs The following table describes the material elements of compensation and the objectives of each element: PROGRAM DESCRIPTION OBJECTIVES ANNUAL COMPENSATION: Base Salary * Ongoing cash compensation based on executive ¢ Attract and retain qualified key managerial talent. officer’s role, responsibilities, competitive market . . oe aS. fo, yfock * Recognize sustained individual performance. positioning, and individual performance. Annual Incentive Plan ¢ Annual cash incentive with target award amounts for + Attract and retain qualified key managerial talent. each executive officer. . ¢ Encourage and reward achievement of annual * Actual cash awards may be higher or lower than performance objectives. target, based on the company’s financial performance. LONG-TERM COMPENSATION: Long-Term Incentive Program * A long-term incentive program using a combination * Focus executives on long-term company performance of time-vested and performance-based awards. and long-term financial and strategic success. * Retention. ¢ Align employee and stockholder interests via performance goals and stock ownership. 205 < HOUSE_OVERSIGHT_024333