0001280452 2025-01-01 2025-12-31 0001280452 2025-12-31 0001280452 2024-12-31 0001280452 2026-02-26 2025-01-01 2025-12-31 0001280452 6 2025-01-01 2025-12-31 0001280452 5 2025-01-01 2025-12-31 0001280452 4 2025-01-01 2025-12-31 0001280452 3 2025-01-01 2025-12-31 0001280452 2 2025-01-01 2025-12-31 0001280452 1 2025-01-01 2025-12-31 0001280452 ecd:ChngInFrValAsOfVstngDtOfPrrYrEqtyAwrdsVstdInCvrdYrMember ecd:NonPeoNeoMember 2025-01-01 2025-12-31 0001280452 ecd:ChngInFrValAsOfVstngDtOfPrrYrEqtyAwrdsVstdInCvrdYrMember ecd:PeoMember 2025-01-01 2025-12-31 0001280452 ecd:ChngInFrValOfOutsdngAndUnvstdEqtyAwrdsGrntdInPrrYrsMember ecd:NonPeoNeoMember 2025-01-01 2025-12-31 0001280452 ecd:ChngInFrValOfOutsdngAndUnvstdEqtyAwrdsGrntdInPrrYrsMember ecd:PeoMember 2025-01-01 2025-12-31 0001280452 ecd:YrEndFrValOfEqtyAwrdsGrntdInCvrdYrOutsdngAndUnvstdMember ecd:NonPeoNeoMember 2025-01-01 2025-12-31 0001280452 ecd:YrEndFrValOfEqtyAwrdsGrntdInCvrdYrOutsdngAndUnvstdMember ecd:PeoMember 2025-01-01 2025-12-31 0001280452 ecd:EqtyAwrdsInSummryCompstnTblForAplblYrMember ecd:NonPeoNeoMember 2025-01-01 2025-12-31 0001280452 ecd:EqtyAwrdsInSummryCompstnTblForAplblYrMember ecd:PeoMember 2025-01-01 2025-12-31 0001280452 2021-01-01 2025-12-31 0001280452 2021-01-01 2021-12-31 0001280452 2022-01-01 2022-12-31 0001280452 2023-01-01 2023-12-31 0001280452 2024-01-01 2024-12-31 0001280452 2026-02-26 2024-01-01 2024-12-31 iso4217:USD shares iso4217:USD pure false 0001280452 DEF 14A MONOLITHIC POWER SYSTEMS, INC. true Equity Incentive Grant Policies We maintain the Monolithic Power Systems Equity Award Grant Policy, which is designed to work in concert with: (1) the administrative provisions of our Amended 2014 Equity Plan and such other plans as we may adopt from time to time (which we refer to collectively as the Plans), (2) the requirements of the Delaware General Corporation Law, (3) the corporate governance requirements of NASDAQ, (4) applicable rules and regulations of the SEC, including those relating to Section 16 of the Exchange Act, and (5) relevant sections of the Internal Revenue Code. Grants to our NEOs are made pursuant to this policy, must be approved by the Compensation Committee and will only be granted at specific times during the year, as described in further detail below. Plan and Corporate Authorization Under the Plans, the authorization to administer the grant of equity incentive awards is conferred upon the Board or any committee of the Board as properly constituted under applicable laws. The Board has delegated to the Compensation Committee the authority to serve as administrator of the Plans (including the authority to grant awards under the Plans), and has approved a charter outlining the responsibilities of this committee which also includes this express authority. The delegation of authority to the Compensation Committee is not exclusive; the Board retains the right to formally approve award grants as well. The Compensation Committee may form and delegate authority to subcommittees when appropriate. In addition, the Board has delegated limited authority for grants of equity awards under the Plans to new employees and consultants to a committee consisting of the Chief Executive Officer (which committee we refer to as the Equity Award Committee). The authority does not extend to grants to the NEOs. The delegation of authority to the Equity Award Committee is not exclusive; the Board and Compensation Committee retain the right to formally approve award grants as well. Equity Grants to New Hires Grants to newly hired employees and consultants (other than Executive Officers as defined below) will generally be made on the date of the next regularly scheduled Board meeting subsequent to the employees’ start date. Management submits the employee equity award recommendations to the Compensation Committee and, if such equity awards are approved by the Compensation Committee, such equity awards will be granted effective as of the date of a meeting approving such awards as evidenced by written minutes of such meeting or the date of the last verification signature or electronic verification over email in the event of a written consent in lieu of the meeting. New hire grants made to “Executive Officers” (currently defined as the Chief Executive Officer, Chief Financial Officer, Chief Legal Officer, Chief Operations Officer, President, employees who are members of the Board and any other employee determined by the Board to be an Executive Officer) generally will only be granted on the date of the next regularly scheduled Board meeting subsequent to the Executive Officer’s start date and following the recommendation of such grant by the Compensation Committee. Equity Grants to Existing Employees or Incumbent Members of the Board Generally, annual grants of equity awards shall be made to key performers at a regularly scheduled Board meeting. Equity awards to non-employee members of the Board shall be made by the Board or pursuant to any automatic grant provisions in the Plans. Equity Incentive Grant Policies We maintain the Monolithic Power Systems Equity Award Grant Policy, which is designed to work in concert with: (1) the administrative provisions of our Amended 2014 Equity Plan and such other plans as we may adopt from time to time (which we refer to collectively as the Plans), (2) the requirements of the Delaware General Corporation Law, (3) the corporate governance requirements of NASDAQ, (4) applicable rules and regulations of the SEC, including those relating to Section 16 of the Exchange Act, and (5) relevant sections of the Internal Revenue Code. Grants to our NEOs are made pursuant to this policy, must be approved by the Compensation Committee and will only be granted at specific times during the year, as described in further detail below. Plan and Corporate Authorization Under the Plans, the authorization to administer the grant of equity incentive awards is conferred upon the Board or any committee of the Board as properly constituted under applicable laws. The Board has delegated to the Compensation Committee the authority to serve as administrator of the Plans (including the authority to grant awards under the Plans), and has approved a charter outlining the responsibilities of this committee which also includes this express authority. The delegation of authority to the Compensation Committee is not exclusive; the Board retains the right to formally approve award grants as well. The Compensation Committee may form and delegate authority to subcommittees when appropriate. In addition, the Board has delegated limited authority for grants of equity awards under the Plans to new employees and consultants to a committee consisting of the Chief Executive Officer (which committee we refer to as the Equity Award Committee). The authority does not extend to grants to the NEOs. The delegation of authority to the Equity Award Committee is not exclusive; the Board and Compensation Committee retain the right to formally approve award grants as well. Equity Grants to New Hires Grants to newly hired employees and consultants (other than Executive Officers as defined below) will generally be made on the date of the next regularly scheduled Board meeting subsequent to the employees’ start date. Management submits the employee equity award recommendations to the Compensation Committee and, if such equity awards are approved by the Compensation Committee, such equity awards will be granted effective as of the date of a meeting approving such awards as evidenced by written minutes of such meeting or the date of the last verification signature or electronic verification over email in the event of a written consent in lieu of the meeting. New hire grants made to “Executive Officers” (currently defined as the Chief Executive Officer, Chief Financial Officer, Chief Legal Officer, Chief Operations Officer, President, employees who are members of the Board and any other employee determined by the Board to be an Executive Officer) generally will only be granted on the date of the next regularly scheduled Board meeting subsequent to the Executive Officer’s start date and following the recommendation of such grant by the Compensation Committee. Equity Grants to Existing Employees or Incumbent Members of the Board Generally, annual grants of equity awards shall be made to key performers at a regularly scheduled Board meeting. Equity awards to non-employee members of the Board shall be made by the Board or pursuant to any automatic grant provisions in the Plans. false false false false false <a href="#" id="pvp"></a>Pay Versus Performance The following Pay Versus Performance information presents the compensation of our NEOs disclosed in the Summary Compensation Table (“SCT”), as well as compensation actually paid (“CAP”) to our NEOs and certain performance measure results prepared in accordance with Item 402(v) of SEC Regulation S-K. As discussed further below, the CAP amounts do not necessarily represent actual compensation earned or realized by our NEOs in a given year. The Compensation Committee did not consider the Pay Versus Performance information in making its compensation decisions for our NEOs. For additional information about our performance-based pay philosophy and how the Compensation Committee aligns executive compensation with our performance, refer to “Named Executive Officer Compensation — Compensation Discussion and Analysis” in this Proxy Statement and in the proxy statements for 2021, 2022, 2023 and 2024. <div> <table cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 8pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; margin-left: 0pt; margin-right: 0pt;"> <tbody><tr class="finHeading" style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 4%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 8%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 8%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 11%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 11%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td colspan="8" rowspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 17%; border-bottom: 1px solid black;"> Value of Initial Fixed $100 Investment Based on: </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 11%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> <td style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 11%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 1%;"> </td> </tr> <tr class="finHeading" style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 4%; border-bottom: 1px solid black;"> Year </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> Summary Compensation Table Total for PEO ($)(1) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> Compensation Actually Paid to PEO ($)(1)(2) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%; padding: 0px;"> Average Summary Compensation Table Total for Non-PEO NEOs ($)(1) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%; padding: 0px;"> Average Compensation Actually Paid to Non- PEO NEOs ($)(1)(2) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> TSR ($)(3) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> Peer Group TSR ($)(3) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> Net Income (in thousands)($)(4) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> Company-Selected Measure: Non-GAAP Operating Income (in thousands)($)(5) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; width: 1%;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 8pt; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 4%;"> 2025 </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 8%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">19,930,736</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 8%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">250,151,561</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">8,503,205</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">100,388,505</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 6%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">256.61</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 6%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">253.38</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">621,483</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; text-align: right;">989,373</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 8pt; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 4%;"> 2024 </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 8%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">18,979,292</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 8%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">21,914,905</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">8,070,410</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">8,549,589</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 6%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">166.15</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 6%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">178.14</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">1,592,058</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; text-align: right;">768,132</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 8pt; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 4%;"> 2023 </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 8%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">14,643,469</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 8%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">138,253,668</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">5,936,147</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">48,844,169</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 6%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">175.91</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 6%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">149.36</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">427,374</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; text-align: right;">648,031</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 8pt; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; width: 4%;"> 2022 </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 8%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">20,664,936</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 8%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">(66,596,378</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">8,578,977</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">(18,412,649</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 6%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">97.85</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 6%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">90.58</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;">437,672</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt;"> </td> <td style="width: 11%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; text-align: right;">688,899</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 8pt; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0); width: 4%;"> 2021 </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 8%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">20,254,831</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 8%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">114,053,034</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">7,227,671</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">35,989,415</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 6%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">135.49</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 6%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">141.16</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 11%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">242,023</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 11%; font-family: "Times New Roman", Times, serif; font-size: 8pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); text-align: right;">400,289</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 8pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> </tbody></table> </div> <hr style="text-align: left; height: 1px; color: #000000; background-color: #000000; width: 10%; border: none; margin: 3pt auto 3pt 0"/> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> (1) </td> <td style="width: auto;"> For each of 2021, 2022, 2023, 2024 and 2025, (each, a “Covered Year”), our CEO, Mr. Hsing, served as our principal executive officer (“PEO”). For each Covered Year, our non-PEO NEOs were Mr. Blegen, Mr. Xiao, Mr. Sciammas and Ms. Tseng. </td> </tr> </tbody></table> 19930736 250151561 8503205 100388505 256.61 253.38

621483000

989373000 18979292 21914905 8070410 8549589 166.15 178.14

1592058000

768132000 14643469 138253668 5936147 48844169 175.91 149.36

427374000

648031000 20664936 -66596378 8578977 -18412649 97.85 90.58

437672000

688899000 20254831 114053034 7227671 35989415 135.49 141.16

242023000

400289000 Mr. Hsing <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> (2) </td> <td style="width: auto;"> The amounts represent the CAP amounts calculated in accordance with SEC rules. The following table provides a reconciliation of the SCT amounts to the CAP amounts for 2025: </td> </tr> </tbody></table> <div> <table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 7.5%; margin-left: 7.5%; width: 85%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;"> <tbody><tr class="finHeading" style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 4%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 60%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 1%;"> </td> <td colspan="6" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 19%;"> FY 2025 </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> </tr> <tr class="finHeading" style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td colspan="2" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 4%; border-bottom: 1px solid black;"> Reconciliation of SCT amounts to CAP amounts (a) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> PEO ($) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> Average Non-PEO NEOs ($) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td colspan="2" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 4%;"> Total SCT amounts </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">19,930,736</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">8,503,205</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);"> <td style="width: 4%; font-family: "Times New Roman", Times, serif; font-size: 10pt;">-</td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 60%;"> “Stock Awards” amounts under the SCT </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt;">(12,686,332</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">(4,804,872</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 4%; vertical-align: top;"> + </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 60%;"> Covered Year-end fair value of awards granted in the Covered Year that are outstanding and unvested as of the end of the Covered Year </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">17,520,279</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">6,635,700</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);"> <td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 4%; vertical-align: top;"> + </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 60%;"> Change in fair value (from prior year-end to Covered Year-end) of awards granted prior to Covered Year that are outstanding and unvested as of the end of the Covered Year </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">68,692,700</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">26,252,611</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 4%; vertical-align: top;"> + </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 60%;"> Change in fair value (from prior year-end to vesting date) of awards granted prior to Covered Year that vested in the Covered Year </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">156,694,178</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">63,801,861</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);"> <td colspan="2" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 4%;"> Total CAP amounts </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">250,151,561</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">100,388,505</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </tbody></table> </div> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> </td> <td style="width: 18pt;"> (a) </td> <td style="width: auto;"> The grant date fair value of the equity awards was determined using a Monte Carlo simulation model. Assumptions used in the grant date valuation are disclosed in our 2025 Annual Report. For equity awards vested during the applicable Covered Year, the fair value was based on the closing stock price plus accumulated dividend equivalents at the vesting date. For outstanding equity awards for which the performance conditions have not been achieved, the year-end fair value was determined using a Monte Carlo simulation model. For outstanding equity awards for which all the performance conditions have been achieved but additional time-based service conditions are required, the year-end fair value was based on the closing stock price plus accumulated dividend equivalents. The increases or decreases in the year-end fair value were primarily driven by changes in our stock price. </td> </tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> (3) </td> <td style="width: auto;"> For purposes of this tabular disclosure, our peer group represents the PHLX Index, which we also disclose in the stock performance graph required by Item 201(e) of Regulation S-K included in our 2025 Annual Report. For each Covered Year, our TSR and our peer group’s TSR were calculated as the cumulative TSR from December 31, 2020 through the last day of the applicable Covered Year, assuming that $100 was invested on December 31, 2020. Because fiscal years are presented in the table in reverse chronological order (from top to bottom), the table should be read from bottom to top for purposes of understanding cumulative returns over time. </td> </tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> (4) </td> <td style="width: auto;"> The amounts represent GAAP net income. In February 2026, we restated 2024 GAAP net income in our 2025 Annual Report. For further information regarding the restatement, see Note 2 to the financial statements included in our 2025 Annual Report. In 2024, one of our foreign subsidiaries was granted a ten-year tax incentive. A deferred tax benefit of approximately $1.1 billion, net of $0.2 billion of deferred tax liability and $0.1 billion of valuation allowance, was recorded in 2024 to reflect the estimated future reductions in cash tax paid in that jurisdiction associated with the incentive. This deferred tax benefit favorably impacted our 2024 GAAP net income. </td> </tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> (5) </td> <td style="width: auto;"> In our assessment, the Company-Selected Measure is non-GAAP operating income, which represents the most important financial performance measure used by us to link CAP to our NEOs, for 2025, to our performance. Refer to “Named Executive Officer Compensation - Compensation Discussion and Analysis” for further discussion. Non-GAAP operating income represents GAAP operating income, excluding stock-based compensation and related expense, deferred compensation expense/income, amortization of acquisition-related intangible assets and litigation expense. See Annexure A for a reconciliation of GAAP operating income to non-GAAP operating income used in our short-term cash incentive plan. </td> </tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> (2) </td> <td style="width: auto;"> The amounts represent the CAP amounts calculated in accordance with SEC rules. The following table provides a reconciliation of the SCT amounts to the CAP amounts for 2025: </td> </tr> </tbody></table> <div> <table border="0" cellpadding="0" cellspacing="0" class="finTable" style="margin-right: 7.5%; margin-left: 7.5%; width: 85%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px;"> <tbody><tr class="finHeading" style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 4%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 60%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 1%;"> </td> <td colspan="6" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 19%;"> FY 2025 </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> </tr> <tr class="finHeading" style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td colspan="2" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 4%; border-bottom: 1px solid black;"> Reconciliation of SCT amounts to CAP amounts (a) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> PEO ($) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> Average Non-PEO NEOs ($) </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td colspan="2" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 4%;"> Total SCT amounts </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">19,930,736</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">8,503,205</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);"> <td style="width: 4%; font-family: "Times New Roman", Times, serif; font-size: 10pt;">-</td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 60%;"> “Stock Awards” amounts under the SCT </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt;">(12,686,332</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">(4,804,872</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 4%; vertical-align: top;"> + </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 60%;"> Covered Year-end fair value of awards granted in the Covered Year that are outstanding and unvested as of the end of the Covered Year </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">17,520,279</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">6,635,700</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);"> <td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 4%; vertical-align: top;"> + </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 60%;"> Change in fair value (from prior year-end to Covered Year-end) of awards granted prior to Covered Year that are outstanding and unvested as of the end of the Covered Year </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">68,692,700</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">26,252,611</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 4%; vertical-align: top;"> + </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 60%;"> Change in fair value (from prior year-end to vesting date) of awards granted prior to Covered Year that vested in the Covered Year </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">156,694,178</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">63,801,861</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);"> <td colspan="2" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 4%;"> Total CAP amounts </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">250,151,561</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">100,388,505</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </tbody></table> </div> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> </td> <td style="width: 18pt;"> (a) </td> <td style="width: auto;"> The grant date fair value of the equity awards was determined using a Monte Carlo simulation model. Assumptions used in the grant date valuation are disclosed in our 2025 Annual Report. For equity awards vested during the applicable Covered Year, the fair value was based on the closing stock price plus accumulated dividend equivalents at the vesting date. For outstanding equity awards for which the performance conditions have not been achieved, the year-end fair value was determined using a Monte Carlo simulation model. For outstanding equity awards for which all the performance conditions have been achieved but additional time-based service conditions are required, the year-end fair value was based on the closing stock price plus accumulated dividend equivalents. The increases or decreases in the year-end fair value were primarily driven by changes in our stock price. </td> </tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> (3) </td> <td style="width: auto;"> For purposes of this tabular disclosure, our peer group represents the PHLX Index, which we also disclose in the stock performance graph required by Item 201(e) of Regulation S-K included in our 2025 Annual Report. For each Covered Year, our TSR and our peer group’s TSR were calculated as the cumulative TSR from December 31, 2020 through the last day of the applicable Covered Year, assuming that $100 was invested on December 31, 2020. Because fiscal years are presented in the table in reverse chronological order (from top to bottom), the table should be read from bottom to top for purposes of understanding cumulative returns over time. </td> </tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> (4) </td> <td style="width: auto;"> The amounts represent GAAP net income. In February 2026, we restated 2024 GAAP net income in our 2025 Annual Report. For further information regarding the restatement, see Note 2 to the financial statements included in our 2025 Annual Report. In 2024, one of our foreign subsidiaries was granted a ten-year tax incentive. A deferred tax benefit of approximately $1.1 billion, net of $0.2 billion of deferred tax liability and $0.1 billion of valuation allowance, was recorded in 2024 to reflect the estimated future reductions in cash tax paid in that jurisdiction associated with the incentive. This deferred tax benefit favorably impacted our 2024 GAAP net income. </td> </tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> (5) </td> <td style="width: auto;"> In our assessment, the Company-Selected Measure is non-GAAP operating income, which represents the most important financial performance measure used by us to link CAP to our NEOs, for 2025, to our performance. Refer to “Named Executive Officer Compensation - Compensation Discussion and Analysis” for further discussion. Non-GAAP operating income represents GAAP operating income, excluding stock-based compensation and related expense, deferred compensation expense/income, amortization of acquisition-related intangible assets and litigation expense. See Annexure A for a reconciliation of GAAP operating income to non-GAAP operating income used in our short-term cash incentive plan. </td> </tr> </tbody></table> 19930736 8503205 -12686332 -4804872 17520279 6635700 68692700 26252611 156694178 63801861 250151561 100388505 For purposes of this tabular disclosure, our peer group represents the PHLX Index, which we also disclose in the stock performance graph required by Item 201(e) of Regulation S-K included in our 2025 Annual Report. For each Covered Year, our TSR and our peer group’s TSR were calculated as the cumulative TSR from December 31, 2020 through the last day of the applicable Covered Year, assuming that $100 was invested on December 31, 2020. Because fiscal years are presented in the table in reverse chronological order (from top to bottom), the table should be read from bottom to top for purposes of understanding cumulative returns over time. non-GAAP operating income Relationship Between CAP and Performance Measures Because our executive compensation program consists primarily of performance-based equity awards, the main determinants of the CAP amounts, as calculated under SEC rules, are our stock price, actual payouts from equity awards vested during the applicable Covered Year, and the number of outstanding equity awards based on projected and actual performance achievement. As shown in the table above, the CAP amounts include year-end revaluations of equity awards granted in the applicable Covered Year, plus changes in the fair value of vested and outstanding equity awards, all of which are heavily impacted by the performance of our stock price. Relationship Between CAP and TSR: The following chart compares the CAP amounts to our TSR and our peer group's TSR since December 31, 2020, measured as of the last day of each Covered Year. <div style="text-align: center;"><img alt="chart07.jpg" src="chart07.jpg"/></div> Relationship Between CAP and Net Income: The following chart compares the CAP amounts to our net income for each Covered Year. <div style="text-align: center;"><img alt="chart08.jpg" src="chart08.jpg"/></div> Relationship Between CAP and Company-Selected Measure: The following chart compares the CAP amounts to the Company-Selected Measure for each Covered Year. <div style="text-align: center;"><img alt="chart09.jpg" src="chart09.jpg"/></div> 2025 Tabular List of Performance Measures The following list includes the most important performance measures used by us to link CAP to our NEOs, for 2025, to our performance. These measures are not ranked. <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> ● </td> <td style="width: auto;"> Revenue growth rate </td> </tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> ● </td> <td style="width: auto;"> Non-GAAP operating income </td> </tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> ● </td> <td style="width: auto;"> Relative TSR </td> </tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> ● </td> <td style="width: auto;"> Manufacturing capacity </td> </tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> ● </td> <td style="width: auto;"> Revenue generated from EV manufacturers </td> </tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> ● </td> <td style="width: auto;"> Revenue generated from products for EV powertrains and 48-volt electrical systems </td> </tr> </tbody></table> Revenue growth rate Non-GAAP operating income Relative TSR Manufacturing capacity Revenue generated from EV manufacturers Revenue generated from products for EV powertrains and 48-volt electrical systems <a href="#" id="recovery"></a>Recovery Analysis Regarding Incentive-Based Compensation Background In connection with the preparation of our 2025 consolidated financial statements, we identified an accounting error related to deferred income taxes associated with a one-time tax incentive granted by a certain foreign jurisdiction in the fourth quarter of 2024. On February 26, 2026, the Audit Committee concluded that the error was material to our previously issued financial statements, requiring a restatement of our audited 2024 consolidated financial statements. The restatement resulted in a decrease to income tax benefit, net, and deferred income taxes of $194.6 million in the consolidated financial statements as of and for the year ended December 31, 2024. We also restated our unaudited 2025 quarterly condensed consolidated financial statements. The restatement included adjustments to deferred tax assets, deferred tax liabilities, retained earnings, income tax benefit, net income, and net income per share. See Note 2 and Note 17 to the financial statements included in our 2025 Annual Report, as well as our Form 8-K filed with the SEC on February 27, 2026, for further details. The error and corrective adjustments were non-cash in nature, and they did not impact key metrics used by MPS in managing operations, such as revenue, gross margin, operating expenses, non-GAAP net income and non-GAAP diluted net income per share. The error did not involve misconduct by any executive officers or employees. Recovery Analysis Following the restatement and the filing of the 2025 Annual Report, the Compensation Committee conducted a recovery analysis under our Compensation Clawback Policy, which was adopted pursuant to SEC Rule 10D-1 and NASDAQ listing standards. Recovery Period: The Compensation Committee determined that the applicable recovery period consisted of 2023, 2024 and 2025 (the “Recovery Period”), representing the three completed fiscal years immediately preceding the date on which the Audit Committee concluded that the restatement was required. Determination of Affected Awards: The Compensation Committee reviewed all incentive-based compensation received by our executive officers during the Recovery Period to identify those awards that were potentially affected by the restatement: <table cellpadding="0" cellspacing="0" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 90%; margin-left: 5%; margin-right: 5%;"> <tbody><tr style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: bottom; width: 20%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black; border-top: 1px solid black;"> Award Type </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: bottom; width: 24%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black; border-top: 1px solid black;"> Year (1) </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: bottom; width: 28%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black; border-top: 1px solid black;"> Performance Condition </td> <td style="border-width: 1px; border-style: solid; border-color: black black rgb(0, 0, 0); vertical-align: bottom; width: 28%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> Conclusion </td> </tr> <tr style="font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 20%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black;"> Annual short-term cash incentives </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 24%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black;"> 2023, 2024 and 2025 </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 28%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black;"> Non-GAAP operating income </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 28%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black; border-right: 1px solid black;"> The metric was not affected by the restatement. </td> </tr> <tr style="font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);"> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 20%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black;"> 2021 PSUs </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 24%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black;"> 2023 </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 28%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black;"> Environmental sustainability </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 28%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black; border-right: 1px solid black;"> The metrics were not affected by the restatement. </td> </tr> <tr style="font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(204, 238, 255);"> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 20%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black;"> 2022 MSUs </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 24%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black;"> 2024 and 2025 </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 28%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black;"> Stock price hurdles and relative TSR </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 28%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black; border-right: 1px solid black;"> Clawback analysis was required. </td> </tr> <tr style="font-family: "Times New Roman", Times, serif; font-size: 10pt; background-color: rgb(255, 255, 255);"> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 20%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black;"> 2023 PSUs </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 24%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black;"> 2025 </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 28%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black;"> Revenue growth rate and manufacturing capacity </td> <td style="border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; width: 28%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-left: 1px solid black; border-right: 1px solid black;"> The metrics were not affected by the restatement. </td> </tr> </tbody></table> <hr style="text-align: left; height: 1px; color: #000000; background-color: #000000; width: 10%; border: none; margin: 3pt auto 3pt 0"/> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> (1) </td> <td style="width: auto;"> Represents the years during which the applicable performance conditions were attained. </td> </tr> </tbody></table> 2026-02-26 194600000 Independent Assessment: The recoverable amount, if any, is the excess of incentive-based compensation received by the executive officers over the amount that would have been received had it been determined based on the restated results. Because the impact of a restatement on incentive-based compensation based on stock price and TSR achievement cannot be mathematically recalculated, SEC Rule 10D-1 and NASDAQ listing standards require the use of reasonable estimates to make the determination. The Compensation Committee engaged a valuation advisory firm to perform an analysis of the effect of the restatement on the 2022 MSUs. The Compensation Committee assessed the independence of the advisory firm pursuant to SEC rules and also concluded that no conflict of interest has been raised by the advisory firm's work or otherwise exists that would prevent them from serving as an independent advisor to the Compensation Committee in this analysis. Payout of the 2022 MSUs was based on the satisfaction of two market conditions over the performance period from October 2022 to October 2025: Condition One: The average closing price of our Common Stock over 90 consecutive trading days must meet or exceed five stock price targets, ranging from $455.41 to $591.25, at any time during the performance period. We achieved all five price targets as of March 2024. Because all five stock price targets were satisfied prior to the period affected by the restatement, the advisory firm concluded that the restatement had no impact on the achievement of this condition. Condition Two: Our three-year TSR relative to the TSR of the companies comprising the PHLX Index must rank at or above the 50th percentile. At the end of the performance period, our TSR was approximately 150% and ranked at the 72nd percentile, well above the 50th percentile threshold. A TSR of approximately 43.3% would have been sufficient to satisfy the 50th percentile threshold, indicating a substantial margin of outperformance. To estimate our stock price levels and TSR absent the misstatement, the advisory firm performed a “but-for” analysis supported by the following two methodologies: <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> (1) </td> <td style="width: auto;"> Fundamental Analysis. The advisory firm recast the TSR by factoring in the impact of the restatement on two key financial metrics - net income and net income per share. The analysis showed that our TSR would have decreased from approximately 150% to 137%. This reduction would not have changed our relative TSR rank, which remained at the 72nd percentile. As stated above, our TSR would have needed to fall to approximately 43.3% for there to be a failure to satisfy the performance condition. </td> </tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody><tr style="vertical-align: top;"> <td style="width: 18pt;"> (2) </td> <td style="width: auto;"> Event Study. The advisory firm recast the TSR by analyzing the adjusted stock price returns following the restatement announcement, which were calculated as the difference between the actual returns and the expected returns based on our historical stock performance compared to the PHLX Index. The analysis showed that our TSR would have decreased by less than 1%, suggesting that the restatement did not have a material impact on the stock price. </td> </tr> </tbody></table> 455.41 591.25 Conclusion Based on a review of the independent analysis performed by the advisory firm, the Compensation Committee concluded that the restatement did not affect the attainment of the applicable performance conditions or the resulting payout levels of the 2022 MSUs. Since no excess incentive-based compensation was determined to have been received by any executive officers during the Recovery Period, no recovery of compensation was required under our Compensation Clawback Policy.