Beam Global

Base Salary

Executive officer base salaries are based on job responsibilities and individual contribution. Our Board of Directors reviews the base salaries of our executive officers, including our Named Executive Officers, considering factors such as corporate progress toward achieving objectives (without reference to any specific performance-related targets) and individual performance experience and expertise. Additional factors reviewed by our Board of Directors in determining appropriate base salary levels and raises include subjective factors related to corporate and individual performance.

Incentive Compensation Awards

A bonus plan was established for the services of our named executive officers for 2023 and 2022. In 2023, the Bonus targets were set as a percentage of base pay of 100% for both the Chief Executive Officer and Chief Financial Officer. Goals for 2023 included: (1) the growth in our revenue, (2) improved gross margin (3) international expansion acquisition that will benefit the Company, (4) capital raise, (5) filling key positions at the Company and other specific goals for these individuals. Goals for 2022 included (1) the growth in our revenue, (2) improved gross margin (3) acquisitions that will benefit the Company, (4) strong investor outreach, (5) filling key positions at the Company and other specific goals for these individuals. Payment for bonuses pertaining to 2023 are expected to be made in the third quarter of 2024. Payment for bonuses pertaining to 2022 was made in 2023.

Equity Incentive Awards

In order to provide an incentive to attract and retain directors, officers, and other employees whose services are considered valuable, to encourage a sense of proprietorship and to stimulate an active interest of such persons in our development and financial success, on August 10, 2011, the Company adopted an equity incentive plan (the “2011 Plan”), pursuant to which 630,000 shares of our common stock are currently reserved for issuance as awards to employees, directors, consultants and other service providers. This 2011 Plan was ratified by our shareholders at the 2012 annual shareholders meeting. On June 9, 2021, the Company’s stockholders approved the Beam Global 2021 Equity Incentive Plan (the “2021 Plan”) under which 2,000,000 shares of the Company’s common stock are reserved to be issued pursuant to the exercise of stock options or other awards granted under such plan in addition to the 630,000 shares previously reserved under the Beam Global 2011 Stock Incentive Plan.

Benefits and Prerequisites

The Company offers paid vacation and sick leave pay, in addition to a full range of benefits, including health care, dental, vision, life insurance and long-term disability. The Company also offers a 401(k) Plan for savings and includes a company match up to 3% of pay for the Company’s employees. We may adopt additional plans and confer other fringe benefits for our executive officers in the future if our business grows sufficiently to enable us to afford them.