NETGEAR INC
For the period ended May 29, 2025. Filed Apr 18, 2025.
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What shareholders are asked to vote on at a company's meeting. It is where to find what directors and top executives are paid, and who owns the most shares.
May 29, 2025 · Filed Apr 18, 2025
Contents
Pay Versus Performance
In accordance with rules adopted by the Securities and Exchange Commission pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, we are providing the following disclosure regarding executive compensation for our principal executive officer (“PEO”) and Non-PEO NEOs and Company performance for the fiscal years listed below. The Compensation and Talent Committee did not consider the pay versus performance disclosure below in making its pay decisions for any of the years shown.
| SummaryCompensation · Compensation · SummaryCompensation · Compensation · Average SummaryCompensationTable Total for · AverageCompensationActually Paid TableTotal for · Value of Initial $100 Investment Based on:(5) · GAAP Net · Non-GAAPOperatingIncome | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Year | Table Total forPEO Charles (CJ) Prober($)(1) | Actually Paidto to PEO Charles (CJ) Prober($)(1) (3) (4) | Table Total forPEO Patrick C.S. Lo($)(4) | Actually Paidto PEO Patrick C.S. Lo($)(1) (2) (3) (4) | Non-PEONEOs($)(1) (2) (3) (4) | Non-PEONEOs($)(1) (2) (3) (4) | CompanyTSR | PeerGroupTSR | Income(Loss)(Millions) | (Loss)(Millions)(6) |
| 2024 | $17,753,288 | $33,050,607 | $2,464,183 | $9,458 | $2,567,933 | $3,434,542 | $114 | $301 | $12 | $(42) |
| 2023 | $— | $— | $1,913,615 | $876,698 | $1,135,769 | $808,716 | $59 | $221 | $(105) | $(4) |
| 2022 | $— | $— | $3,301,355 | $(73,726) | $1,297,048 | $500,475 | $74 | $133 | $(69) | $(10) |
| 2021 | $— | $— | $5,221,876 | $(1,380,992) | $1,777,660 | $629,637 | $119 | $207 | $49 | $109 |
| 2020 | $— | $— | $5,002,294 | $10,225,543 | $1,697,060 | $2,599,063 | $166 | $150 | $58 | $128 |
Charles (CJ) Prober and Patrick C.S. Lo were our PEOs in 2024. The individuals comprising the Non-PEO NEOs for the year are Bryan D. Murray, Pramod Badjate, Michael F. Falcon, David J. Henry and Michael A. Werdann.
Patrick C.S. Lo was our PEO in 2023, 2022, 2021 and 2020. The individuals comprising the Non-PEO NEOs for each year presented are listed below.
| 2023 | 2022 | 2021 | 2020 |
| Bryan D. Murray | Bryan D. Murray | Bryan D. Murray | Bryan D. Murray |
| David J. Henry | Michael F. Falcon | David J. Henry | Vikram Mehta |
| Vikram Mehta | David J. Henry | Andrew W. Kim | Michael A. Werdann |
| Michael A. Werdann | Michael A. Werdann | Michael A. Werdann | Martin D. Westhead |
The amounts shown for Compensation Actually Paid have been calculated in accordance with Item 402(v) of Regulation S-K and do not reflect compensation actually earned, realized, or received by the Company’s NEOs. These amounts reflect the Summary Compensation Table Total with certain adjustments as described in footnote 4 below.
Compensation Actually Paid reflects the exclusions and inclusions of certain amounts for the PEO and the Non-PEO NEOs as set forth below. Equity values are calculated in accordance with FASB ASC Topic 718. Amounts in the “Exclusion of Stock Awards” column are the amounts from the Stock Awards column set forth in the Summary Compensation Table.
| Year 2024 | SummaryCompensationTable Total | Exclusion of StockAwards | Inclusion of EquityValues | CompensationActually Paid |
|---|---|---|---|---|
| PEO Charles (CJ) Prober | $17,753,288 | $16,231,750 | $31,529,069 | $33,050,607 |
| PEO Patrick C.S. Lo | $2,464,183 | $960,123 | $(1,494,602) | $9,458 |
| Non-PEO NEOs | $2,567,933 | $1,731,978 | $2,598,586 | $3,434,542 |
| 72 | 2025 PROXY STATEMENT |
The amounts in the Inclusion of Equity Values in the tables above are derived from the amounts set forth in the following tables:
| Year 2024 | Year-End Fair Value of Equity Awards Granted During Year That Remained Unvested as of Last Day of Year | Change in Fair Value from Last Day of Prior Year to Last Day of Year of Unvested Equity Awards | Change in Fair Value from Last Day of Prior Year to Vesting Date of Unvested Equity Awards that Vested During Year | Fair Value of Vested Awards Granted and Vested in Current Fiscal Year | Fair Value of Last Day of Prior Year of Equity Awards Forfeited During Year | Total - Inclusion of Equity Values |
|---|---|---|---|---|---|---|
| PEO Charles (CJ) Prober | $31,529,069 | $— | $— | $— | $— | $31,529,069 |
| PEO Patrick C.S. Lo | $— | $— | $(24,938) | $— | $(1,469,664) | $(1,494,602) |
| Non-PEO NEOs | $2,256,570 | $346,500 | $23,307 | $62,063 | $(89,854) | $2,598,586 |
The Peer Group TSR set forth in this table utilizes the NASDAQ Computer Index which we also utilize in the stock performance graph required by Item 201(e) of Regulation S-K included in our Annual Report for the year ended December 31, 2024. The comparison assumes $100 was invested for the period starting December 31, 2019, through the end of the listed year in the Company and in the NASDAQ Computer Index, respectively. Historical stock performance is not necessarily indicative of future stock performance.
We determined non-GAAP operating income, as calculated under our annual incentive plan, to be the most important financial performance measure used to link Company performance to Compensation Actually Paid to our PEO and Non-PEO NEOs in 2024 because this is the primary financial performance metric in our 2024 executive bonus plan. Non-GAAP operating income is equal to our GAAP operating income after excluding bonus expense, amortization of intangibles, stock-based compensation expense, goodwill impairment, intangibles impairment, restructuring and other charges, litigation reserves, net, gain/loss on investments, net, gain on litigation settlements, and adjust for effects related to non-GAAP tax adjustments, as presented in the Company’s press release reporting the financial results for fiscal 2024. We may determine a different financial performance measure to be the most important financial performance measure in future years. Refer to the reconciliation of these non-GAAP financial measures to the comparable GAAP financial measure in Appendix A of this proxy statement.
Relationship Between PEO and Other NEO Compensation Actually Paid and Company Performance
The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually Paid to our other NEOs, the Company’s TSR, and the Peer Group’s TSR over the four most recently completed fiscal years.
| 2025 PROXY STATEMENT | 73 |
The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually Paid to our other NEOs, and our GAAP net income during the four most recently completed fiscal years.
The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually Paid to our other NEOs, and our non-GAAP operating income during the four most recently completed fiscal years.
Tabular List of Most Important Financial Performance Measures
The following table presents the financial performance measures that the Company considers to have been the most important in linking Compensation Actually Paid to our PEO and other NEOs for 2024 to Company performance. The measures in this table are not ranked.
Most Important Financial Measures
Non-GAAP operating income
Net revenue
Profit contribution
| 74 | 2025 PROXY STATEMENT |
Policies and Practices Related to the Grant of Certain Equity Awards Close in Time to the Release of Material Nonpublic Information
While we have granted stock options to employees in the past, we donot currently grant stock options, stock appreciation rights, or similar instruments with option-like features and have no policies or practices to disclose pursuant to Item 402(x)(1) of Regulation S-K.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.