EPLUS INC

Under our 2021 Employee Long-Term Incentive Plan (“2021 Employee LTIP”), the Compensation Committee has the authority to award various forms of long-term incentive compensation grants, such as cash awards, stock options, restricted stock awards, restricted stock units, and performance stock units. The Compensation Committee’s objectives for the fiscal year 2025 long-term equity-based and cash incentive awards to our NEOs were to focus executives on long-term, profitable growth and shareholder value creation linked to the Company’s long-term strategic plan, and to promote the retention of our executives through multi-year vesting requirements.

Mr. Marron makes recommendations to the Compensation Committee for cash and equity grants with regard to Ms. Marion and Mr. Raiguel; however, the Compensation Committee deliberates and reaches its own decision regarding grants to all NEOs, including Mr. Marron, who does not participate in any deliberations or votes regarding his own compensation. When determining the level of the grant, the Compensation Committee considers each NEO’s functional and enterprise management responsibilities, contributions to the Company’s profitability and growth, the value of prior long-term incentive grants and other non-cash and cash compensation, regular analysis of how the Company performed on multiple financial metrics as compared to certain peers, information from our independent compensation consultant (if any), and each executive’s total compensation, including cash compensation. However, the Compensation Committee does not use a formula or assign a particular weight to any given factor in determining equity award grant levels. Rather, the Compensation Committee’s determination of grant levels is subjective and informed by relevant data, information and market practices, and the Compensation Committee grants awards that are intended to deliver compensation to the executive at the target performance level (subject to actual performance and irrespective of accounting and tax implications) and in its judgment are reasonably competitive.

The Compensation Committee believes that restricted stock and performance stock unit awards help to create incentives for performance and further align the interests of executives with those of shareholders because the stock’s value increases or decreases in conjunction with the Company’s stock price. The Compensation Committee believes that long-term cash performance awards align the interests of executives with those of shareholders because the award’s value is tied to operating metrics that drive long-term shareholder value. In addition, the Compensation Committee believes that granting awards with multi-year vesting periods creates a substantial retention incentive and encourages the NEOs to focus on the Company’s long-term business objectives and stock performance. All outstanding restricted shares vesting for, or granted to, executive officers and other employees during the fiscal year ended March 31, 2025, vest over a three-year period.

After conducting the process described above for fiscal year 2025, the Compensation Committee elected to provide the NEOs with a combination of long-term incentive vehicles, including time-based restricted stock, performance-based stock units, and cash performance awards, which are consistent with the award types (and performance metrics) granted to the NEOs for fiscal 2024. In reviewing the competitiveness of the compensation package provided to the NEOs, it was determined that in order to maintain the competitiveness and attractiveness of the compensation package, total target compensation should be increased, primarily through increases to performance-based equity awards (performance based-stock units) and to lesser extent through increases to long-term cash awards (cash performance awards). These vehicles focus NEOs on driving long-term profitable growth and achieving key financial, operational and strategic metrics that are intended to generate long-term value creation for our shareholders. The target value of the restricted stock awards for fiscal 2025 was consistent with the target level provided for fiscal 2024. The target value of the fiscal 2025 performance-based stock unit grant for (i) Mr. Marron increased by 60%, (ii) Ms. Marion increased by 75% and (iii) Mr. Raiguel increased by 67%, each relative to fiscal 2024. The target value of the fiscal 2025 cash performance award for (i) Mr. Marron increased by 27%, (ii) Ms. Marion increased by 33% and (iii) Mr. Raiguel increased by 33%, each relative to fiscal 2024.

The table below shows the long-term incentive award values granted (at the target level of performance) for fiscal year 2025 for each of the NEOs:

Vested Long-Term Cash Performance Awards Completed

(Performance Period April 1, 2022 – March 31, 2025)

Our Compensation Committee granted long-term cash performance awards in fiscal year 2023 that pay out based on specific pre-established performance goals of growth in operating income (50% of award) and growth in net sales (50% of award). Performance was measured over the three-fiscal-year performance period ending March 31, 2025. At the conclusion of the fiscal year ended March 31, 2025, the Compensation Committee determined that the financial objectives described under the long-term cash performance award agreements for the performance period of April 1, 2022, through March 31, 2025, were achieved at the levels indicated in the table below, generating the indicated payouts under these long-term cash performance awards. There were no waivers or modifications to any specified performance targets, goals, or conditions with respect to the award agreements. The achievement of the financial performance goals is set forth below.

The following table details the payments earned during the three-fiscal-year periods ended March 31, 2025, and March 31, 2024, respectively, (but paid in the subsequent fiscal year) for each NEO:

More information about the long-term incentive awards granted to each NEO in fiscal year 2025 are set forth in “2025 Grants of Plan-Based Awards.”

CEO Compensation

The Compensation Committee determines compensation for our CEO using generally the same criteria it uses for other executive officers.