Board Justification

Our compensation philosophy is to link potential and personal performance to base pay, and variable incentive pay to financial results and operational metrics. This philosophy is a core element of our Company’s culture. Under this philosophy, we link base pay to performance, effort, market, and local demand. Increases in compensation are based on continuous improvement and career development. We link the variable incentive portion of our pay to financial results and operational metrics for each of our locations and across our enterprise. We believe these incentives drive collaboration, cooperation, personal development, and continuous improvement that help us attain our financial and operational metrics within our priorities of focus.

Board Justification

Annual cash incentive awards to our NEOs based on our financial performance and key operational goals. For fiscal year 2025, the Committee approved performance metrics of adjusted operating margin to the Board approved plan, revenue growth to peers, and revenue growth to the Board approved plan. The Committee also approved a modifier relating to achievement of ESG objectives.

Board Justification

Includes benefits received by the NEOs from Company contributions earned for the 401(k) Retirement Plans and SERP Plans. SERP and 401(k) Retirement Plan Company contribution amounts earned for fiscal year 2025 for Mr. Phillips were $10,500. In addition to the retirement contributions, Mr. Phillips received $23,836 of perquisites during 2025, which included $11,240 for club memberships, $10,000 for security services, and $2,596 for commuting expenses.

Board Justification

Shares acquired upon vesting during fiscal year 2025 include tranches of prior years’ restricted shares granted on August 19, 2022 and August 29, 2023 and LTPS granted on August 24, 2021.