UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

SCHEDULE 14A

(RULE 14a-101)

INFORMATION REQUIRED IN

PROXY STATEMENT

SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of

the Securities Exchange Act of 1934

Filed by the Registrant  x☒

Filed by a Party other than the Registrant  ¨☐

Check the appropriate box:

American Superconductor Corporation

(Name of Registrant as Specified In Itsin its Charter)

(Name of Person(s) Filing Proxy Statement, if Other than Registrant)

Payment of Filing Fee (check the appropriate box)(Check all boxes that apply):

AMERICAN SUPERCONDUCTOR CORPORATION

64 Jackson Road114 East Main Street

Devens,Ayer, Massachusetts 0143401432

Notice of Annual Meeting of Stockholders to

be Held on Friday, July 29, 2016August 11, 2023

The Annual Meeting of Stockholders (the “Annual Meeting”) of American Superconductor Corporation (“AMSC”) will be held via a completely virtual format through a live audio-only webcast hosted online at AMSC’s corporate headquarters, located at 64 Jackson Road, Devens, Massachusetts 01434,www.virtualshareholdermeeting.com/AMSC2023 on Friday, July 29, 2016August 11, 2023 at 8:10:30 a.m., localEastern Time. The Annual Meeting will be held exclusively online and you will not be able to attend the Annual Meeting physically. You will be able to vote your shares electronically and submit questions during the meeting by logging into the website listed above using the 16-digit control number included in the Notice of Internet Availability of Proxy Materials, on your proxy card or on the instructions that accompanied our proxy materials. Online check-in will begin at 10:15 a.m. Eastern Time, and you should allow ample time tofor the check-in procedures.

At the Annual Meeting, AMSC’s stockholders will consider and act upon the following matters:

Stockholders of record at the close of business on June 6, 201615, 2023 will be entitled to notice of and to vote at the annual meetingAnnual Meeting or any continuation, postponement or adjournment thereof. A complete list of these stockholders will be open to the examination of any stockholder at our principal executive offices at 114 East Main Street, Ayer, MA 01432 for a period of ten days prior to the Annual Meeting and will be available on the bottom of your screen during the Annual Meeting after entering the 16-digit control number included on your Notice of Internet Availability of Proxy Materials or proxy card or on the materials provided by your bank or broker. The stock transfer books of AMSC will remain open.Annual Meeting may be continued or adjourned from time to time without notice other than by announcement at the Annual Meeting.

By Order of the Board of Directors,

John R. Samia, Secretary

Devens, Massachusetts

June 17, 2016

IT IS IMPORTANT THAT YOUR SHARES BE REPRESENTED AT THE VIRTUAL ANNUAL MEETING. THEREFORE, WHETHER OR NOT YOU EXPECT TO ATTEND THE VIRTUAL ANNUAL MEETING, PLEASE SUBMIT YOUR PROXY (1) OVER THE INTERNET, (2) BY TELEPHONE, OR (3) BY MAIL. FOR SPECIFIC INSTRUCTIONS, PLEASE REFER TO THE QUESTIONS AND ANSWERS BEGINNING ON THE FIRST PAGE OF THE PROXY STATEMENT AND THE INSTRUCTIONS ON THE PROXY CARD RELATING TO THE VIRTUAL ANNUAL MEETING.

By Order of the Board of Directors,

John R. Samia, Secretary

Ayer, Massachusetts

June 28, 2023

Table of Contents

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AMERICAN SUPERCONDUCTOR CORPORATION

64 Jackson Road114 East Main Street

Devens,Ayer, Massachusetts 0143401432

PROXY STATEMENT

For the Annual Meeting of Stockholders to be Held on Friday, July 29, 2016August 11, 2023

This proxy statement is furnished in connection with the solicitation of proxies by the Board of Directors, or Board, of American Superconductor Corporation, or AMSC, for use at the Annual Meeting of Stockholders, or Annual Meeting, to be held via a completely virtual format through a live audio-only webcast hosted online at www.virtualshareholdermeeting.com/AMSC2023on Friday, July 29, 2016,August 11, 2023, beginning at 8:10:30 a.m., local time, at AMSC’s corporate headquarters, located at 64 Jackson Road, Devens, Massachusetts 01434, Eastern Time, and at any continuation, postponement or adjournment of the Annual Meeting. On or about June 17, 2016,28, 2023, we are releasing this proxy statement together with our annual report, consisting of our Annual Report on Form 10-K for the fiscal year ended March 31, 2016,2023, or 20152022 Annual Report, and other information required by the rules of the Securities and Exchange Commission, or SEC, to our stockholders of record on the record date for the meeting. Our 20152022 Annual Report is provided without exhibits. Exhibits will be provided, at no charge, upon written request addressed to American Superconductor Corporation, 64 Jackson Road, Devens,114 East Main Street, Ayer, MA 01434,01432, Attention: Investor Relations.

Our fiscal year begins on April 1 and ends on March 31. When we refer to a particular fiscal year, we are referring to the fiscal year ended or ending on March 31 of the following year. For example, fiscal 20152022 refers to the fiscal year ended March 31, 2016.2023.

Important Notice Regarding the Availability of Proxy Materials

for the Stockholder Meeting to be Held on July 29, 2016August 11, 2023

AMSC’s proxy statement and annual report are available at

www.proxyvote.com

The following proxy materials are available for review atwww.proxyvote.com:

INFORMATION ABOUT THIS PROXY STATEMENT

Why you received this proxy statement. You are viewing or have received these proxy materials because AMSC’s Board is soliciting your proxy to vote your shares at the Annual Meeting. This proxy statement includes information that we are required to provide to you under the rules of the SEC and that is designed to assist you in voting your shares.

Notice of Internet Availability of Proxy Materials. As permitted by SEC rules, AMSC is making this proxy statement and its 20152022 Annual Report available to certain of its stockholders electronically via the Internet. On or about June 17, 2016,28, 2023, we mailed to these stockholders a Notice of Internet Availability of Proxy Materials, or Internet Notice, containing instructions on how to access this proxy statement and our 20152022 Annual Report and vote online. If you received an Internet Notice by mail, you will not receive a printed copy of the proxy materials in the mail unless you specifically request them. Instead, the Internet Notice instructs you on how to access and review all of the important information contained in the proxy statement and 20152022 Annual Report. The Internet Notice also instructs you on how you may submit your proxy over the Internet. If you received an Internet Notice by mail and would like to receive a printed copy of our proxy materials, then you should follow the instructions for requesting such materials contained on the Internet Notice.

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Printed Copies of Our Proxy Materials. Some of our stockholders received printed copies of our proxy statement, 20152022 Annual Report and proxy card. If you received printed copies of our proxy materials, then instructions regarding how you can vote are contained on the proxy card included in the materials.

INFORMATION ABOUT THE ANNUAL MEETING AND VOTING

What is the purpose of the Annual Meeting?

At our Annual Meeting, stockholders will act upon the matters outlined in the accompanying notice of meeting, including the election of the directors named in this proxy statement, approval of amendments to our 2007 Stock Incentive Plan, approval of amendments to our Amended and Restated 2007 Director Stock Plan, approval of an amendment to our 2000 Employee Stock Purchase Plan and the ratification of the selectionappointment of our independent registered public accounting firm.firm, the approval, on an advisory basis, of the compensation of our named executive officers and the approval, on an advisory basis, of the frequency of future advisory votes on the compensation of our named executive officers. Stockholders may also consider such other business as may properly come before the meeting. We are not aware of any other business to be brought before the meeting. If any other business is properly brought before the meeting, the designated officers serving as proxies will vote in accordance with their best judgment.

Who is entitled to vote?

You are entitled to vote at the Annual Meeting, or any continuation, postponement or adjournment of the Annual Meeting, only if you were a stockholder of record at the close of business on the record date, June 6, 2016,15, 2023, or if you hold a valid proxy for the Annual Meeting. The number of stockholders of record as of the June 6, 201615, 2023 record date was 323.173. Holders of shares of our common stock are entitled to one vote per share.

WhoWhy is AMSC hosting the Annual Meeting in a virtual meeting format only?

A virtual meeting enables increased stockholder attendance and participation because stockholders can participate from any location around the world. The virtual Annual Meeting has been designed to provide the same rights to participate as you would have at an in-person meeting. Because our Annual Meeting is being held virtually over the internet, when we refer to “in person” for aspects pertaining to the Annual Meeting, we mean live virtual attendance through the means described in this proxy statement.

How do I attend the meeting?virtual Annual Meeting?

All stockholdersStockholders of record as of June 15, 2023 will be able to attend and participate in the record date,Annual Meeting online by accessing www.virtualshareholdermeeting.com/AMSC2023. To join the Annual Meeting, you will need to have your 16-digit control number which is included on your Internet Notice, your proxy card (if you received a printed copy of the proxy materials) or their duly appointed proxies, maythe instructions that accompanied the proxy materials.

Even if you plan to attend the Annual Meeting. Please noteMeeting online, we recommend that you also vote by proxy as described herein so that your vote will be counted if you holdsubsequently decide not to attend the Annual Meeting.

Access to the Audio Webcast of the Annual Meeting. The live audio webcast of the Annual Meeting will begin promptly at 10:30 a.m. Eastern Time on August 11, 2023. We encourage our stockholders to access the meeting website prior to the start time. Online access to the audio webcast will open approximately 15 minutes prior to the start of the Annual Meeting to allow time for you to log in and test the computer audio system.

Log in Procedures. To attend the virtual Annual Meeting, visit www.virtualshareholdermeeting.com/AMSC2023 to log in. Stockholders will need their unique 16-digit control number included in your Internet Notice (printed in the box and marked by the arrow), proxy card or the instructions that accompanied the proxy materials. If your shares are held in “street name” (through a bank, broker or other nominee), you will need to bring a copy of a brokerage statement reflecting your stock ownership in AMSC as of the record date or the Internet Notice you received fromshould contact your bank, broker or other nominee as soon as possible to obtain your 16-digit control number or otherwise vote through the bank, broker or other nominee.

If you lose your 16-digit control number, you may join the Annual Meeting as a “Guest” but you will not be admittedable to vote, ask questions or access the list of stockholders as of the record date.

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Technical Assistance. Beginning 15 minutes prior to the start of and during the virtual Annual Meeting, we will have technicians ready to assist stockholders with any technical difficulties they may have accessing or hearing the virtual meeting. If you encounter any difficulties accessing the virtual meeting during the check-in or meeting time, please call the technical support number that will be posted on the annual meeting website log-in page.

Will there be a question and answer session during the Annual Meeting?

As part of the Annual Meeting, we will hold a live questions and answers session, during which we intend to answer questions submitted online during the meeting that are pertinent to AMSC and the meeting matters, for up to fifteen minutes following the completion of the Annual Meeting. You may obtain directionsOnly stockholders that have accessed the Annual Meeting as a stockholder (rather than a “Guest”) by following the procedures outlined above in “How do I attend the virtual Annual Meeting?” will be permitted to submit questions during the Annual Meeting. Each stockholder is limited to two questions, each up to a maximum of 1000 characters, in order to allow us to answer questions from as many stockholders as possible. Questions should be succinct and only cover a single topic. We will not address questions that are, among other things:

Questions and answers may be grouped by calling (978) 842-3247.topic, and we may group substantially similar questions together and answer them once. If there are matters of individual concern to a stockholder and not of general concern to all stockholders, or if a question posed was not otherwise answered, we encourage stockholders to contact us separately after the Annual Meeting.

Additional information regarding the question and answer session will be available in the “Rules of Conduct” available on the Annual Meeting webpage for stockholders that have accessed the Annual Meeting as a stockholder (rather than a “Guest”) by following the procedures outlined above in “How do I attend the virtual Annual Meeting?”.

What constitutes a quorum?

The holders of a majority of the shares of common stock outstanding and entitled to vote at the Annual Meeting will constitute a quorum for the transaction of business at the Annual Meeting. Shares of common stock represented in person or by proxy (including shares that abstain or do not vote with respect to one or more of the matters presented for stockholder approval) will be counted as present and entitled to vote for purposes of determining whether a quorum is present at the Annual Meeting. As of the June 6, 201615, 2023 record date, 14,174,92830,268,898 shares of our common stock were outstanding and entitled to vote.

How do I vote?

If you are a stockholder of record, meaning your shares are registered in your name, you may vote:

(1)Over the Internet: Go to the website of our tabulator, Broadridge, atwww.proxyvote.com. Use the vote16-digit control number printed on your Internet Notice, or proxy card or the instructions that accompanied the

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proxy materials to access your account and vote your shares. You must specify how you want your shares voted or your Internet vote cannot be completed and you will receive an error message. Your shares will be voted according to your instructions.

(2)By Telephone: Call 1-800-690-6903, toll free from the U.S. and Canada, and follow the instructions on your proxy card. You must specify how you want your shares voted and confirm your vote at the end of the call or your telephone vote cannot be completed. Your shares will be voted according to your instructions.

(3)By Mail: Complete and sign your proxy card and mail it in the accompanying postage prepaid envelope to Broadridge, 51 Mercedes Way, Edgewood, NY 11717. Your shares will be voted according to your instructions. If you do not specify how you want your shares voted, they will be voted as recommended by our Board of Directors.

(4)In Person atduring the Virtual Annual Meeting: If youYou may attend the virtual Annual Meeting and vote during the meeting even if you may deliverhave already voted by proxy. To vote during the meeting, visit www.virtualshareholdermeeting.com/AMSC2023 on the day of the meeting; you will need the 16-digit control number provided on your completedInternet Notice or proxy card in person or you may vote by completing a ballot, which we will provide to you at the Annual Meeting.card.

If your shares are held in “street name,” meaning they are held for your account by a bank, broker or other nominee, you may vote:

(1)Over the Internet or by Telephone: You will receive instructions from your bank, broker or other nominee if they permit Internet or telephone voting. You should follow those instructions.

(2)By Mail: You will receive instructions from your bank, broker or other nominee explaining how you can vote your shares by mail. You should follow those instructions.

(3)In Person atduring the Virtual Annual Meeting: To be ableIf your shares are not registered in your own name and you would like to vote your shares held in street name in personelectronically at the Annual Meeting, you will needshould contact your bank or broker to obtain a legal proxy (separate from the proxy card supplied by us) that is prepared and supplied by your bank, broker16-digit control number or other nominee.You will not be ableinstructions on how to vote in person at the Annual Meeting unless you have a proxy from yourmeeting through the bank broker or other nominee issued in your name giving you the right to vote your shares.broker.

Can I change my proxy after I return my proxy card?

Yes. You may revoke your proxy and change your vote at any time before the Annual Meeting. To do so, you must do one of the following:

(1) Vote over the Internet or by telephone as instructed above. Only your latest Internet or telephone vote is counted.

(2) Sign a new proxy card and submit it as instructed above. Only your latest dated proxy card will be counted.

(3) Attend the Annual Meeting, request that your proxy be revoked and vote in person as instructed above. Attending the Annual Meeting will not revoke your proxy unless you specifically request it.

Will my shares be voted if I don’t return my proxy?

If your shares are registered directly in your name, your shares will not be voted if you do not vote over the Internet, by telephone, by returning your proxy card or voting by ballot at the Annual Meeting. If your shares are held in “street name” by a bank, broker or other nominee, that person, as the record holder of your shares, is required to vote your shares according to your instructions. Your bank, broker or other nominee will send you directions on how to vote those shares. Under applicable stock exchange rules, if you do not give instructions to your bank, broker or other nominee, it will still be able to vote your shares with respect to certain “discretionary” items, such as the ratification of the appointment of RSM US LLP (“RSM”) as our independent registered public accounting firm, but will not be allowed to vote your shares with respect to certain “non-discretionary” items.“non-discretionary” items, such as the election of directors, the approval, on an advisory basis, of the compensation of our named executive officers and the approval, on an advisory basis, of the frequency of future advisory votes on the compensation of our named executive officers. In the case of “non-discretionary”“non-discretionary” items, shares for which your bank, broker or other nominee does not receive voting instructions will be treated as “broker non-votes.”

What is the vote required to approve each matter?

(1)Election of Directors. Directors will be elected by a plurality of the votes cast by the stockholders entitled to vote on the election. This means that the six nominees receiving the most affirmative votes will be elected as directors at the Annual Meeting. Votes withheld and “broker non-votes” will have no effect on the outcome of the election of directors.

(2)Approval of Amendments to our 2007 Stock Incentive Plan. The affirmative vote of the holders of a majority of the shares of common stock voting on the matter is required for approval of amendments to our 2007 Stock Incentive Plan. Abstentions and “broker non-votes” will have no effect on the outcome of this proposal.

(3)Approval of Amendments to our Amended and Restated 2007 Director Stock Plan. The affirmative vote of the holders of a majority of the shares of common stock voting on the matter is required for approval of amendments to our Amended and Restated 2007 Director Stock Plan. Abstentions and “broker non-votes” will have no effect on the outcome of this proposal.

(4)Approval of an Amendment to our 2000 Employee Stock Purchase Plan. The affirmative vote of the holders of a majority of the shares of common stock voting on the matter is required for approval of an amendment to our 2000 Employee Stock Purchase Plan. Abstentions and “broker non-votes” will have no effect on the outcome of this proposal.

(5)Ratification of the SelectionAppointment of our Independent Registered Public Accounting Firm. The affirmative vote of the holders of a majority of the shares of common stock voting on the matter is required for the ratification of the selectionappointment by the Audit Committee of RSM US LLP as our independent registered public accounting firm for the current fiscal year. Abstentions will have no effect on the outcome of this proposal. Because brokers have discretionary authority to vote on the ratification of the selectionappointment of our independent registered public accounting firm, we do not expect any “broker non-votes” in connection with this proposal.

(3) Approval, on an Advisory Basis, of Named Executive Officer Compensation. The affirmative vote of the holders of a majority of shares of common stock voting on the matter is required for the approval, on an advisory basis, of the compensation of our named executive officers. Abstentions and “broker non-votes” will have no effect on the outcome of the proposal. This proposal is non-binding.

(4) Approval, on an Advisory Basis, of the Frequency of Future Advisory Votes on Executive Compensation. The affirmative vote of the holders of a majority of shares of common stock voting on the matter is required for the approval, on an advisory basis, of the frequency of future advisory votes on the compensation of our named executive officers. If none of the three frequency options (one year, two years or three years) receives such vote, we will consider the frequency option receiving the highest number of votes cast by stockholders to be the frequency recommended by our stockholders. Abstentions and “broker non-votes” will have no effect on the outcome of the proposal. This proposal is non-binding.

Who will count the votes?

Our Board of Directors has appointed a representative of Broadridge Financial Solutions to serve as the inspector of elections at the Annual Meeting and to tabulate the votes.

Are there other matters to be voted on at the meeting?

As of the date of this proxy statement, our Board of Directors does not know of any other matters which may come before the meeting, other than the matters described in this proxy statement. Should any other matter requiring a vote of our stockholders arise and be properly presented at the Annual Meeting, the proxy for the Annual Meeting confers upon the persons named in the proxy and designated to vote the shares discretionary authority to vote, or otherwise act, with respect to any such matter in accordance with their best judgment.

Our Board encourages stockholders to attend the virtual Annual Meeting. Whether or not you plan to attend, you are urged to submit your proxy. Prompt response will greatly facilitate arrangements for the meeting and your cooperation will be appreciated. Stockholders who attend the virtual Annual Meeting may vote their stock personally even though they may have sent in their proxies.

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STOCK OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth the beneficial ownership of our common stock as of May 31, 2016,June 15, 2023, or such earlier date as indicated below, by:

Unless otherwise provided, the address of each individual listed below is c/o American Superconductor Corporation, 64 Jackson Road, Devens,114 East Main Street, Ayer, Massachusetts 01434.01432.

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CORPORATE GOVERNANCE

Our Board has long believed that good corporate governance is important to ensure that AMSC is managed for the long-term benefit of our stockholders. This section describes key corporate governance guidelines and practices that we have adopted. Complete copies of our committee charters, corporate governance guidelines and code of business conduct and ethics described below have been posted in the “Corporate Governance” section of the “Investors” page of our website atwww.amsc.com. Alternatively, you can request a copy of any of these documents by writing to our Investor Relations department at 64 Jackson Road, Devens,114 East Main Street, Ayer, Massachusetts 0143401432 or by calling (978) 842-3247.399-8344.

Members of the Board

Set forth below, for each director, are his or her name and age, his or her positions (if any) with us, his or her principal occupation and business experience during at least the past five years, the names of other public companies of which he or she has served as a director during at least the past five years and the year of the commencement of his or her term as a director of AMSC. Each of the individuals named below is a nominee for election to our Board at the Annual Meeting. There are no family relationships among any of our directors and executive officers.

Vikram S. BudhrajaLaura A. Dambier, age 68,64, has been president and chief executive officerPresident of Electric Power Group,Insurance Capital Consulting LLC, a Pasadena, California-based privately held firm that provides smart grid synchrophasor technology applications and services, power grid reliability monitoring solutions, and strategicConnecticut limited liability company, an expert witness and consulting services to the electric power industry,firm specializing in insurance operations, since July 2022. Ms. Dambier also has served as an independent consultant since January 2000.2017. From 1977January 1997 to January 2000, Mr. Budhraja servedApril 2015, she worked at Lincoln Financial Group, which has over $200 billion in key executiveassets under management and senioroperates multiple insurance and investment management businesses through subsidiary companies, where she held a series of positions at Edison International, the parent company of Southern California Edison, including: president of Edison Technology Solutions; senior vice presidentincreasing responsibility culminating as Senior Vice President, Partner Solutions for Life, Claims and head of the Power Grid Business Unit of Southern California Edison responsible for all transmission assetsDistribution, and control center operations; and vice president of System Planning, Fuels and Operations of Southern California Edison. He is a founding member of the Consortium for Electric Reliability Technologyfirm’s corporate leadership group. Ms. Dambier led Lincoln Financial’s Partner Solutions, (CERTS)a corporate shared services organization located across four operating locations. Prior to Lincoln Financial, Ms. Dambier also previously served in positions at the U.S. Senate and worked with the U.S.-Canadian Power Systems Outage Task ForceAmerican Embassy in Germany. We believe Ms. Dambier’s qualifications to sit on our Board include her broad experience in operations, strategic planning, merger and acquisition integration, financial management, risk management and technology, and her extensive leadership in business, government and not-for-profit organizations. Ms. Dambier has been a director of our company since June 2022.

Arthur H. House, age 80, has been a partner at Cybersecurity Risk Associates, LLC, a Connecticut limited liability company, that was formedadvises clients on improving their cybersecurity, compliance and privacy programs, since May 2020. Mr. House also has served as an adjunct professor at the University of Connecticut since March 2020. From April 2020 to investigate the root causes of the August 14, 2003 power blackout in the Northeast. Mr. Budhraja has previouslyDecember 2020, he served as a directorcybersecurity policy advisor to the Secretary of several organizations, includingState of the California Independent System Operator (CAISO), which manages California’s power transmission system,State of Connecticut. From October 2016 to October 2019, Mr. House served as Chief Cybersecurity Risk Officer for the State of Connecticut. From June 2012 until October 2016, he was chairman of the Connecticut Public Utilities Regulatory Authority. From January 2009 until May 2012, Mr. House served as Director of Communications of the Office of the Director of National Intelligence and SoftSwitching Technologies, whichas head of internal and external communications for the National Geospatial-Intelligence Agency, a combat support agency for the U.S. Department of Defense. From January 2002 until January 2009, he served as Senior Vice President of Public Affairs at Connecticut-based Webster Bank, a bank that provides scalable power qualitybusiness and monitoring solutions. Heconsumer banking, mortgage, insurance, trust and investment services. Mr. House has also holds a Professional Director Certification frompreviously served in various positions at the American College of Corporate Directors, a national public company director education organization.World Bank, the National Security Council and the U.S. Senate. We believe Mr. Budhraja’sHouse’s qualifications to sit on our Board include his extensive operational knowledge of, and executive level management experience in the electric power industry.utility and cybersecurity industries, his international business and government relations experience and work in both internal and external corporate communications. Mr. BudhrajaHouse has been a director of our company since 2004.September 2016.

Pamela F. LenehanMargaret D. Klein, age 64, 66,has been presidenta professor of Ridge Hill Consulting, a strategy and financial consulting firm,ethical leadership at the Naval War College since June 2002.2017. From September 2001 until June 2002, Ms. Lenehan was self-employed as a private investor. From March 2000 until September 2001,2017 to December 2022, she served as vice presidentDean of the College of Leadership and Ethics at the Naval War College. From 1981 to 2017, Ms. Klein served in the United States Navy and held the rank of Rear Admiral at the time of her retirement. As Rear Admiral Klein, she served as the Secretary of Defense’s Advisor for Military Professionalism. She served as Chief of Staff for U.S. Cyber Command and in 2008 served as

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Director of Operations for the Navy’s Network Warfare Command. In 2011, Ms. Klein commanded an American military force of five ships, 30 aircraft and over 3,300 Sailors and Marines in combat operations in the Mediterranean Sea. She served as the 82nd Commandant of Midshipmen at the U.S. Naval Academy, where she was responsible for 4,400 Navy and Marine Corps officer candidates. Ms. Klein also commanded an aviation squadron and wing. We believe Ms, Klein’s qualifications to sit on our Board include her extensive leadership and management experience gained while serving as a senior officer in the United States Navy and in government and not-for-profit organizations. Ms. Klein has been a director of our company since June 2022.

Barbara G. Littlefield, age 65, has been Chairwoman and Lead Operating Director at Resilient Infrastructure Group, a developer of a full range of distributed water and wastewater solutions as a service for private and municipal clients that solve site-specific treatment needs, since February 2021. From August 2014 to May 2020, she served as chief financial officer of Convergent Networks, Inc.,Poseidon Water LLC, a manufacturerleading developer of switching equipment.water infrastructure projects in North America. From September 2013 until August 2014, Ms. Littlefield served as senior vice president, strategy and corporate development, of Poseidon Water LLC. From February 19952011 until January 2000,May 2013, she was senior vice president of corporate development and treasurera board member of Oak Industries,Drax Biomass International Inc., a manufacturer of telecommunications components until itan enterprise securing upstream biomass supply for large British electricity generators. From 2006 to 2010, Ms. Littlefield was acquired by Corning. Prior to that time, Ms. Lenehan was a Managing Director in Credit Suisse First Boston’s Investment Banking division and aan executive vice president and chief financial officer of Corporate Banking at Chase Manhattan Bank. Ms. Lenehan is currently a director of Monotype Imaging Holdings Inc., a software company that provides typefaces, technology and expertise for creative applications and consumer devices, and Civitas Solutions, which provides home and community-based health and human services. She previously served as a director of SpartechVerenium Corporation, a leading supplier of sustainable plastic sheet, compounding and packaging solutions. She also holds an Executive Masters Professional Director Certification from the American College of Corporate Directors, a national publicjoint venture company director education organization.formed to commercialize second generation biofuels technology. We believe Ms. Lenehan’sLittlefield’s qualifications to sit on our Board include her experience serving as a director for other public companies, her extensive financial and strategic management experience and her particular knowledge of equity and debt financing and mergers and acquisitions.large infrastructure projects. Ms. LenehanLittlefield has been a director of our company since March 2011.May 2019.

Daniel P. McGahn, age 44,51, has been our chairman of the Board since July 2018, chief executive officer since June 2011 and president since December 2009. Mr. McGahn also served as our chief operating officer from December 2009 until May 2011, as

senior vice president and general manager of our AMSC Superconductors business unit from May 2008 until December 2009 and vice president of our AMSC Superconductors business unit from January 2008 to May 2008. Previously, Mr. McGahn was our vice president of strategic planning and development from December 2006 to January 2008. From 2003 to 2006, Mr. McGahn served as executive vice president and chief marketing officer of Konarka Technologies, which develops and commercializes Konarka Power Plastic^®, a material that converts light to electricity. We believe Mr. McGahn’s qualifications to sit on our Board include his extensive experience with our company, including serving as our president since December 2009 and our chief executive officer since June 2011, experience in the power electronics industry and with technology companies, and strategic planning expertise gained while working in senior management and as a consultant for other public and private companies. Mr. McGahn has been a director of our company since June 2011.

David R. Oliver, Jr., age 74,81, is currently an independent consultant. He served as a strategic advisor, mergers and acquisitions, for European Aeronautic Defense and Space Company North America (EADS NA), a European aerospace corporation, from January 2012 until July 2013. From January 2008 until December 2011, Mr. Oliver served as executive vice president and chief operating officer for EADS NA. Mr. Oliver also served as chief executive officer of the defense division of EADS NA for most of the four years preceding January 2008 except when he was running the EADS NA portion of the capture effort for the Air Force Tanker program. Before joining EADS NA, Mr. Oliver was stationed in Baghdad as Director of Management and Budget for the Coalition Forces. Prior to that, he served as the United States’ Principal Deputy Undersecretary of Defense for Acquisition and Technology. Mr. Oliver also previously held management positions at both Westinghouse Electric and Northrop Grumman. In the Navy, he commanded diesel and nuclear submarines as well as two submarine groups during the Cold War. His last Navy appointment was as Principal Deputy to the Assistant Secretary of the Navy for Research, Development and Acquisition. Rear Admiral (retired) Oliver’s military decorations include the Defense and Navy Distinguished Service Medals as well as six awards of the Legion of Merit. We believe Mr. Oliver’s qualifications to sit on our Board include his extensive leadership, management and budgeting experience gained while serving as a senior officer in the United States Navy and at EADS, NA, and his valuable corporate governance experience gained while serving as a director for other public and private companies. Mr. Oliver has been a director of our company since September 2006.

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John B. Vander SandeSummary of Board Diversity, age 72, co-founded AMSC, but has never had day-to-day operational responsibilities at

In addition to the director qualifications described in our company. Dr. Vander Sandecorporate governance guidelines, the following chart includes demographic information regarding our directors.

Further information on each nominee’s qualifications and relevant experience is the Cecil and Ida Green Distinguished Professor, Department of Materials Science and Engineering, emeritus, at the Massachusetts Institute of Technology (MIT), specializingprovided in the analysis of the microstructure of materials. He was Associate Dean and Acting Dean of Engineering at MIT from 1992 to 1999 and was founding Executive Director of the Cambridge (England)-MIT Institute from 1999 to 2003. He was Acting Provost at Reykjavik University, Iceland in 2009-10. We believe Dr. Vander Sande’s qualifications to sit on our Board include his extensive knowledge of materials, the power technologies industry and his long-time tenure as a professor and administrator at a leading research university. Dr. Vander Sande has been a director of our company since 1990.individual biographical descriptions above.

John W. Wood, Jr., age 72, has been chairman of our Board since August 2011 and is currently an independent consultant. He served as chief executive officer of Analogic Corporation, a designer and manufacturer of medical imaging and security systems, from 2003 through 2006. Prior to joining Analogic, he held senior executive positions over a 22-year career at Thermo Electron Corporation. Most recently, Mr. Wood served as president of Peek Ltd., a division of Thermo Electron Corporation, and as a senior vice president of the parent company. He previously served as president and chief executive officer of Thermedics, a subsidiary of Thermo Electron. Mr. Wood is a director of FLIR Systems, Inc., which is a publicly traded company that designs, manufactures and markets thermal imaging infrared cameras, and ESCO Corporation, which is a privately held company that manufactures engineered metal wearparts and components for industrial applications, including mining, construction, power generation and aerospace. He also holds an Executive Masters Director Certification from the American College of Corporate Directors, a national public company director education organization. We believe Mr. Wood’s qualifications to sit on our Board include his extensive executive-level management experience and significant financial experience. Mr. Wood has been a director of our company since December 2006.

Director Nomination Process

The process followed by our Nominating and Corporate Governance Committee to identify and evaluate director candidates includes requests to Board members and others for recommendations, meetings from time to time to evaluate biographical information and background material relating to potential candidates, and interviews of selected candidates by members of the Nominating and Corporate Governance Committee and our Board.

In considering whether to recommend any particular candidate for inclusion in our Board’s slate of recommended director nominees, the Nominating and Corporate Governance Committee applies the criteria set forth in our corporate governance guidelines, such as the candidate’s integrity, business acumen, knowledge of our business and industry, experience, diligence, interest and ability to understand conflicting interests of our various constituencies and ability to act in the interests of all stockholders. The Nominating and Corporate Governance Committee does not assign specific weights to particular criteria and no particular criterion is a prerequisite for each prospective nominee. We believe that the backgrounds and qualifications of our directors, considered as a group, should provide a composite mix of experience, knowledge and abilities that will allow our Board to fulfill its responsibilities.

Our Nominating and Corporate Governance Committee does not have a formal policy with respect to diversity, but believes that our Board, taken as a whole, should embody a diverse set of skills, experiences and backgrounds. In addition, the Board is committed to attracting highly qualified candidates with diverse backgrounds, including highly qualified women, minority and LGBTQ+ candidates, with diverse skills and experiences as part of each Board search we undertake.

Stockholders may recommend director candidates for consideration by the Nominating and Corporate Governance Committee of our Board by submitting the stockholder’s name, address and number of shares of our

stock held, and the candidate’s name, age, address and resume to our Corporate Secretary at American Superconductor Corporation, 64 Jackson Road, Devens,114 East Main Street, Ayer, Massachusetts 01434.01432. Our Nominating and Corporate Governance Committee and Board will evaluate stockholder-recommended candidates using the criteria described above. If our Board decides to nominate a stockholder-recommended candidate, then we will include his or her name in the proxy statement and proxy card for the next annual meeting.

Stockholders also have the right under our bylaws to directly nominate director candidates, without any action or recommendation on the part of the Nominating and Corporate Governance Committee or our Board, by following the procedures set forth under “Stockholder Proposals for 20172024 Annual Meeting.” Candidates nominated by stockholders in accordance with the procedures set forth in our bylaws will not be included in our proxy statement or proxy card for the next annual meeting.

Board Meetings and Attendance

Our Board met tennine times during fiscal 2015,2022, either in person or by teleconference. During fiscal 2015,2022, each director attended at least 95%91% of the aggregate number of Board meetings held during the period for which he or she was a director and meetings held by all committees onduring the period in which he or she then served.

Director Attendance at Annual Meeting of Stockholders

Each of our then-current directors attended the 20152022 Annual Meeting of Stockholders. Our corporate governance guidelines provide that directors are expected to attend the Annual Meeting of Stockholders.

Board Leadership Structure

Mr. Wood, a non-employee independent director, has served as the chairman of our Board since August 2011, while Mr. McGahn, serves as our chief executive officer, and president. In fiscal 2012, ourhas served as chairman of the Board since July 27, 2018. Our corporate governance guidelines were amendedprovide the Nominating and Corporate Governance Committee with flexibility to requireassess our leadership structure on an ongoing basis and determine whether the positions of chief executive officer and chairman of the Board should be separate. Our Board has determined that it is in the best interests of our company and our stockholders to have the same individual serve as chief executive officer and chairman of the Board for the following reasons:

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In the event that the chairman of the Board is not an independent director, our corporate governance guidelines provide that the appropriate leadership structure for our companyNominating and Corporate Governance Committee may recommend an independent director to serve as Lead Director, who shall be approved by a majority of independent directors. The Lead Director has the following duties:

On August 1, 2022, the current business environment,Nominating and Corporate Governance Committee recommended, and all of our independent directors approved, the appointment of Mr. House as well as the commitment required toLead Director. Mr. House will serve as our chairman.Lead Director until the Annual Meeting.

Board Committees

Our Board has established three standing committees — Audit, Compensation, and Nominating and Corporate Governance — each of which operates under a charter that has been approved by our Board. Current copies of each committee’s charter are posted in the “Corporate Governance” section of the “Investors” page of our website,www.amsc.com. Our Board has determined that all of the members of each of our Board’s three standing committees are independent as defined under the rules of the Nasdaq Stock Market,Rules, including, in the case of all members of the Audit Committee, the independence requirements contemplated by Rule 10A-3(c) promulgated under the Securities Exchange Act of 1934, as amended, or the Exchange Act, and, in the case of all members of the Compensation Committee, the independence requirements specific to compensation committee members under the rules of the Nasdaq Stock Market.Rules.

Audit Committee

The Audit Committee’s responsibilities include:

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The current members of the Audit Committee are Ms. LenehanMr. Oliver (chairman), Mr. Oliver, Dr. Vander SandeMs. Dambier and Mr. Wood.Ms. Littlefield. The Audit Committee met ninefive times during fiscal 2015.2022. Our Board has determined that each of Mr. Oliver and Ms. LenehanLittlefield is an “audit committee financial expert” as defined in applicable SEC rules.

Compensation Committee

The Compensation Committee’s responsibilities include:

Consistent with the requirements of applicable law and our company’s equity-based plans, the Compensation Committee has the authority to delegate to one or more executive officers of our company the power to grant rights or options to acquire shares of our company’s common stock to employees of our company who are not directors or executive officers of our company.

The current members of the Compensation Committee are Mr. BudhrajaHouse (chairman), Dr. Vander SandeMs. Littlefield and Mr. Wood.Ms. Klein. The Compensation Committee met eightfive times during fiscal 2015.2022.

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Nominating and Corporate Governance Committee

The Nominating and Corporate Governance Committee’s responsibilities include:

The current members of the Nominating and Corporate Governance Committee are Mr. WoodHouse (chairman) and Mr. Budhraja.Oliver. The Nominating and Corporate Governance Committee met four times during fiscal 2015.2022.

Oversight of Risk

Our Board oversees our risk management processes directly and through its committees. Our management is responsible for implementing and supervising risk management processes on a day-to-day basis. Additionally, management discusses strategic and operational risks at regular management meetings and conducts specific strategic planning and review sessions during the year that include a focused discussion and analysis of the risks facing us. Throughout the year, senior management reviews these risks with the Board at regular Board meetings as part of management presentations that focus on particular business segments, functions, operations or strategies, and presents the steps taken by management to mitigate or eliminate such risks. The role of our Board and its committees is to oversee the risk management activities of management. Our Board does not have a standing risk management committee, but rather administers this oversight function directly through the Board as a whole, as well as through various standing committees of the Board that address risks inherent in their respective areas of oversight. In particular, our Board focuses its oversight on risk management activities relating to business strategy, acquisitions, liquidity, organizational structure and certain operational risks. Our Board is responsible for monitoring and assessing strategic risk exposure, including business continuity risks. In accordance with its charter, our Audit Committee discusses policies with respect to our assessment and management of risk (both financial and non-financial)non-financial, including information security), including guidelines and policies to govern the process by which our exposure to risk is monitored, controlled and reported, and reports regularly to the Board on these matters. In general,Senior management at least annually provides updates to the Audit Committee on our Board focuses its oversight on risk management activities relating to business strategy, acquisitions, capital allocation, organizational structure and certain operationalinformation security risks. Our Compensation Committee oversees risk management activities relating to our compensation policies and practices and management succession planning. Our Nominating and Corporate Governance Committee oversees risk management activities relating to Board composition.composition and ESG matters. Each committee reports to the full Board on a regular basis, including reports with respect to the committee’s risk oversight activities as appropriate. Our Board does not believe that its role in the oversight of our risks affects the Board’s leadership structure.

Executive Compensation Process

The Compensation Committee has implemented an annual performance review program for our executives, under which annual performance objectives are determined and set forth in writing atduring the beginningfirst quarter of each fiscal year for AMSC as a whole and for each executive individually. Annual corporate objectives are proposed by management and reviewed by our Compensation Committee and approved by our Board. These corporate objectives target the achievement of specific operational milestones. Annual individual objectives focus on contributions that facilitate the achievement of the corporate objectives and are typically set during the first quarter of each fiscal year. Individual measurable objectives, if any, are proposed by each executive, reviewed by the chief executive officer, and formed on the basis of recommendations to our Compensation Committee and our Board (in the case of our chief executive officer) with regard to executive compensation. No

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individual measurable objectives were established in fiscal 2022. Annual salary levels, annual bonuses, and annual stock option grants and restricted stockequity awards to our executives are tied to the achievement of these corporate and, if applicable, individual performance objectives.

Our Board has delegated to a committee of the Board, designated as the Awards Committee, which consists solely of our chairman of the Board, president and chief executive officer, Mr. McGahn, the authority to grant options and award restricted stock, subject to the terms and conditions of our 20072022 Stock Incentive Plan and any other limitations set by the Board, to employees other than executive officers.

Our Compensation Committee has the authority to retain compensation consultants and other outside advisors to assist in the evaluation of executive officer compensation.

Anti-Hedging Policy

Our Board has adopted an Insider Trading Compliance Policy, which applies to all of our directors, officers and employees. The policy prohibits our directors, officers and employees, their family members and any entities they control from purchasing financial instruments, such as prepaid variable forward contracts, equity swaps, collars, and exchange funds, or otherwise engaging in transactions that hedge or offset, or are designed to hedge or offset, any decrease in the market value of the Company’s equity securities, whether such securities were granted as compensation or are otherwise held, directly or indirectly.

Communicating with the Independent Directors

Our Board will give appropriate attention to written communications that are submitted by stockholders, and will respond if and as appropriate. Our Corporate Secretary is primarily responsible for monitoring communications from stockholders and for providing copies or summaries to the directors as he considers appropriate.

Under procedures approved by a majority of the independent directors, communications or a summary thereof are forwarded to all directors if they relate to important substantive matters and include suggestions or comments that our Corporate Secretary considers to be important for the directors to know. In general, communications relating to corporate governance and long-term corporate strategy are more likely to be forwarded than communications relating to ordinary business affairs, personal grievances and matters as to which we tend to receive repetitive or duplicative communications.

Stockholders who wish to send communications on any topic to our Board should address such communications to our Board c/o Corporate Secretary, American Superconductor Corporation, 64 Jackson Road, Devens,114 East Main Street, Ayer, Massachusetts 01434.01432.

Code of Business Conduct and Ethics

We have adopted a written Code of Business Conduct and Ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial and principal accounting officer, or persons performing similar functions. We have posted a current copy of the code in the “Corporate Governance” section of the “Investors” page of our website,www.amsc.com. In addition, we intend to post on our website all disclosures that are required by law or Nasdaq Stock Market listing standardsRules concerning any amendments to, or waivers from, any provision of our code.

Audit Committee Report

The Audit Committee has reviewed AMSC’s audited financial statements for the fiscal year ended March 31, 20162023 and has discussed these financial statements with management and RSM, AMSC’s independent registered public accounting firm.

Management is responsible for AMSC’s internal control over financial reporting and the financial reporting process, and for the preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, or GAAP. AMSC’s independent registered public accounting firm is responsible for performing an audit of AMSC’s financial statements in accordance with the standards of

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the Public Company Accounting Oversight Board (United States) and issuing a report on those financial statements. As appropriate, the Audit Committee reviews and evaluates, and discusses with AMSC’s management, internal accounting, financial and auditing personnel, and the independent registered public accounting firm, the following:

Management represented to the Audit Committee that AMSC’s financial statements had been prepared in accordance with GAAP.

The Audit Committee also discussed with RSM US LLP, AMSC’s independent registered public accounting firm, AMSC’s audited financial statements and the matters required to be discussed by the applicable accounting standards and Audit Committee rules including the matters required by Statement on Auditing Standards No. 16, as adopted byof the Public Company Accounting Oversight Board.Board and the Securities and Exchange Commission.

The Audit Committee has received the written disclosures and the letter from AMSC’s independent registered public accounting firmRSM required by applicable requirements of the Public Company Accounting Oversight Board regarding AMSC’s independent registered public accounting firm’sRSM’s communications with the Audit Committee concerning independence, and has discussed with AMSC’s independent registered public accounting firmRSM its independence.

Based on its discussions with management and the independent registered public accounting firm,RSM, and its review of the representations and information provided by management and the independent registered public accounting firm,RSM, the Audit Committee recommended to the Board of Directors of AMSC that the audited financial statements be included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016.2023.

By the Audit Committee of the Board.

Pamela F. Lenehan,Chair

David R. Oliver, Jr., Chair

John B. Vander SandeLaura A. Dambier

John W. Wood, Jr.

INFORMATION ABOUT EXECUTIVE AND DIRECTOR COMPENSATION

Compensation Discussion and Analysis

Introduction

This Compensation Discussion and Analysis, (“or CD&A”)&A, describes the principles of our executive compensation program, how we applied those principles in compensating our named executive officers for the fiscal year ended March 31, 2016,2023, or fiscal 2015,2022, and how our compensation program drives performance.

Our named executive officers for fiscal 20152022 are:

In this CD&A, we first provide an executive summary of our compensation program for fiscal 2015.2022. We then describe our compensation philosophy and the objectives of our executive compensation program and how the Compensation Committee of our Board oversees our compensation program. We discuss the compensation determination process and describe how we determine each element of compensation.

Executive Summary

Business Overview

Our company continuesWe believe that fiscal 2022 was a year of continued progress towards the successful execution of our strategy of growth through our Grid business unit in order to deal diligently with major challenges that it has faced over the past few years, including the theft of intellectual property in 2011 by our former largest customer, Sinovel Wind Group Co., Ltd., or Sinovel. In responsediversify revenues and to these events,establish what we expect to be a more predictable, re-occurring business. We believe that our executive management team has respondedpositioned our company well to continue to execute on our strategy and to respond effectively by (i) expanding the globalcontinuing to further diversify our base of customers and market geographies for our products and services, (ii) decreasing dependence upon manufacturing in Chinadeveloping and the Chinese market,introducing new products, and (iii) capturing integration synergies and streamlining various functions of the business, (iv) reorganizing and consolidating our global operations, and (v) reducing our global workforce and the size of our executive team in order to lower expenses.business.

While our company has been working through all of these major challenges,Additionally, our Board and Compensation Committee have also been tryingcontinued to retainfocus on retaining our key talent at the executive level and throughout our entire organization. This has not been an easy task, especially as the economy overall has improved and employees find themselves with opportunities elsewhere.

Over the past few years, the Compensation Committee, with the help of management and its independent compensation consultant, has:

The remainder of this executive summary and report outlines our fiscal 20152022 business accomplishments and our pay decisions, which reflect our attemptwhat we believe to balance doing what isbe appropriate for our business and our stockholders while retaining key talent during these difficult times.stockholders.

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Overview of Fiscal 20152022 Accomplishments and Financial Performance

Business Accomplishments

At the beginning of fiscal 2015, management identified three discreteOur strategy is focused on growing our Grid business goals which were: (i)unit in order to diversify our revenues and to position our company to generate sustainable revenue growth.

As described in more detail below, we believe that fiscal 2022 was a year of continued progress towards the successful execution of our strategy and the establishment of what we expect to be a more predictable, re-occurring business.

Fiscal 2022 revenues were $106.0 million, compared to $108.4 million in fiscal 2021. Net loss was $35.0 million in fiscal 2022, or $1.26 per diluted share, compared to a net loss of $19.2 million in fiscal 2021, or $0.71 per diluted share.

During fiscal 2022, we announced approximately $150 million of new orders, inclusive of the new energy power systems orders described below. These orders continue to expand our geographic reach and broaden our end market, and include orders for reactive compensation, enclosed capacitor banks, harmonic filters, voltage controllers, rectifiers and transformers.

In April 2022, we announced $24 million of new energy power systems orders primarily from customers in the renewables markets.

In July 2022, we announced $40 million of new energy power systems orders primarily from customers in the semiconductor and renewables markets.

In October 2022, we announced $30 million of new energy power systems orders primarily from customers in the metals, mining and materials markets.

In December 2022, we entered into a delivery contract with the U.S. Navy for an HTS-based SPS to be deployed on the San Antonio class of amphibious transport dock ship, LPD 32. This order represents our D-VAR^® system; (ii) to announce an additional city exploringfifth SPS contract for the deploymentSan Antonio Class Amphibious ship platform.

In January 2023, we announced $26 million of new energy power systems orders primarily from customers in the industrials and renewable markets.

In March 2023, we successfully achieved the completion of our Resilient Electric Grid, or REG, system;system milestone, resulting in the cancellation of the $5 million irrevocable letter of credit that secured certain of our performance obligations and (iii) to receive a new large wind order. We successfully accomplished allthe release of these goals in fiscal 2015.

During fiscal 2015, we received approximately $28$5 million of new D-VAR orders from customers in South Africa, Australia, Asia, the United Kingdom, and North America.restricted cash.

In July 2015, we announced that Washington D.C.’s PEPCO, a unit of Chicago-based Exelon Corporation, was undertaking a deployment study of our REG system, joining utilities in Chicago and Boston.

In August 2015, we announced a $40 million order for Electrical Control Systems, or ECS, from Inox Wind Limited, or Inox, in India for its 2 Megawatt, or MW, wind turbines.

In December 2015, we entered into a set of strategic agreements valued at approximately $210.0 million with Inox, which includes a multi-year supply contract pursuant to which we will supply electric control systems to Inox and a license agreement allowing Inox to manufacture a limited number of electrical control systems over the next three to four years. After this initial three to four year period, Inox agreed that we will continue as Inox’s preferred supplier and Inox will be required to purchase from us a majority of its electric control systems requirements for an additional three-year period. These agreements are expected to provide a foundation for the business as we pursue our longer-term objectives. During the fourth quarter of fiscal 2015, Inox made the upfront payment of $6.0 million required under the license agreement, but as of the date of this proxy statement, it has not made the $2.0 million advance payment required under the supply contract.

Financial Performance

While our company continued to generate a significant net loss in fiscal 2015, our overall fiscal 2015 financial performance was better than our fiscal 2014 financial performance and our stock price increased 18% in fiscal 2015. Fiscal 2015 revenues grew 36% to $96.0 million versus $70.5 million in fiscal 2014. Our company’s fiscal 2015 net loss was reduced by more than half to $23.1 million, or $1.76 per share, compared to a fiscal 2014 net loss of $48.7 million, or $5.74 per share. Our company’s fiscal 2015 Non-GAAP Net Loss was $26.2 million, or $1.99 per share, compared to a fiscal 2014 Non-GAAP Net Loss of $39.6 million, or $4.67 per share. Our company generated cash from operations during the second half of fiscal 2015. This is the first such extended period of positive operating cash flows since the events with Sinovel in 2011. Finally, for the full fiscal year, cash used in operations decreased to $4.6 million in fiscal 2015, compared to $32.7 million in fiscal 2014.

For more information about Non-GAAP Net Loss, including a definition and reconciliation against net loss calculated and presented in accordance with GAAP, please see the discussion in “Item 7. Management Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Measures” commencing on page 37 of our Annual Report on Form 10-K filed on May 31, 2016.

Forward-Looking Statements

This proxy statement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements regarding our expectation about the Inox agreements providingthat successful execution of our strategy will establish a foundation formore predictable, re-occurring business; and our business.strategy, products and future plans and prospects. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” “will,” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements represent management’s current expectations and are inherently uncertain. There are a number of important factors that could materially impact the value of our

common stock or cause actual results to differ materially from those indicated by such forward-looking statements. Such factors includerisks and uncertainties include: our history of operating losses and negative operating cash flows, which may continue in the riskfuture and require additional financing; our operating results may fluctuate significantly and fall below expectations; we may be required to issue performance bonds or provide letters of credit; risks related to changes in exchange rates; if we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data; not realizing all of the sales expected from our backlog of orders and contracts; U.S. government contracts being subject to audit, modification or termination; changes in U.S. government defense spending and reduction in revenue due to lack of government funding; the COVID-19 pandemic has adversely impacted our business, financial condition and results of operations and other future

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pandemics or health crises may have similar impacts; reliance on third-party manufacturers, suppliers, subcontractors and collaborators; uncertainty surrounding our prospects and financial condition may have an adverse effect on our customer and supplier relationships; failure to manufacture our Amperium wire in commercial quantities at acceptable cost and quantity levels; dependence upon attracting and retaining qualified personnel; a significant portion of our Wind segment revenues are derived from a single customer. If this customer’s business is negatively affected, it could adversely impact our business; our success in addressing the wind energy market is dependent on the manufacturers that license our designs; failure or security breach of our or any critical third parties’ information technology infrastructure and networks; failure to comply with evolving data privacy and data protection laws and regulations or to otherwise protect personal data; failure to implement our business strategy successfully; problems with product quality or product performance; risks from customers outside of the Inox agreements willUnited States that may be either directly or indirectly related to governmental entities and risks associated with anti-bribery laws; limited success marketing and selling our superconductor products and system-level solutions; failure to realize anticipated benefits from acquisitions; we or third parties on whom we depend may be adversely affected by natural disasters, including events resulting from climate change, and our business continuity and disaster recovery plans may not become effectiveadequately protect us or be fulfilledour value chain from such events; adverse changes in accordance with their termsdomestic and global economic conditions could adversely affect our operating results; our reliance on international operations, in particular emerging markets; changes in India’s political, social, regulatory and economic environment may affect our financial performance; dependence on the important factors discussedsuccess of the commercial adoption of the REG system, which is currently limited; risks related to industry consolidation; the intense competition that our products face; risks related to operations in foreign countries; increased focus on environmental sustainability and social initiatives could increase our costs, and inaction could harm our reputation and adversely impact our financial results; dependence of the growth of the wind energy market on government subsidies, economic incentives and legislative programs; lower prices for other fuel sources may reduce the demand for wind energy development; risks related to our intellectual property; risks related to our technologies; risks related to our legal proceedings; risks related to our common stock; and other risks and uncertainties such those identified under the caption “Risk Factors” in Part 1. Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended March 31, 2023, and our other reports filed with the SEC, which, among others, could cause actual results to differ materially from those indicated by forward-looking statements made herein. Any such forward-looking statements represent management’s estimates as of the date of this proxy statement. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this proxy statement.

Overview of Our Executive Compensation Program

The Compensation Committee of our Board has designed our executive compensation program to attract and retain superior employees in key positions to enable our company to succeed in the highly competitive market for talent, while simultaneously maximizing stockholder value. We intend to continue to provide a competitive compensation package to our executives, tie a significant portion of pay to performance and utilize components that best align the interests of our executives with those of our stockholders.

The following is a summary of important aspects of our executive compensation program discussed later in this CD&A:

Key Elements of Our Compensation Program. Our compensation program is designed to achieve these objectives through a combination of the following types of compensation:

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Each element of our executive compensation program is discussed in greater detail below.

Fiscal 20152022 Compensation Programs and Decisions

In line with our executive compensation program’s emphasis on pay for performance, we believe the compensation awarded to our named executive officers for fiscal 20152022 properly reflected the achievement of our operating goals, our financial results and overall compensation philosophy and the challenges that our company is still experiencing:philosophy:

fiscal 2015,2022, each named executive officer received a cash bonus payment equal to 172%53% of target bonus opportunity based on achieving (i) significantly overachievingbetween threshold- and target-level performance on the Non-GAAP Net Loss, ending cash balance, revenue objective, and orders objectives, (ii) slightly underachievingbetween target- and maximum-level performance on the operating expense objective,expenses objective. Operating cash flow performance did not meet the threshold performance level requisite for payout, and (iii) overachieving onas a result, no executive officer received payout under this objective. See the individual performance criteria.section entitled “Performance-Based Annual Cash Bonuses” below for a description of these metrics.

We believe that management continued to make improvementsprogress in fiscal 2022 on our company’s performancestrategy to grow its Grid business unit in order to diversify its revenues and liquidity in fiscal 2015.to establish what we expect to be a more predictable, re-occurring business. The Compensation Committee believes that the named executive officers’ fiscal 20152022 compensation was appropriate given the performance and steps taken by management to position theour company for future growth,to implement and realize its strategy, as noted by the business accomplishments described above, cost control and cash management.above.

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Compensation Program Philosophy and Objectives

The Compensation Committee of our Board oversees our executive compensation program, pursuant to authority established in the Compensation Committee Charter. The Compensation Committee reviews and approves all compensation decisions relating to our executive officers, except for the chief executive officer. The Compensation Committee reviews the compensation for our chief executive officer and makes a recommendation to our Board, and our Board then determines the compensation of our chief executive officer.

Our executive compensation program is designed to meet three principal objectives:

These objectives collectively seek to link executive compensation to our overall company performance, which helps to ensure that the interests of our executives are aligned with the interests of our stockholders.

The Compensation Committee’s decisions regarding executive compensation during fiscal 20152022 were based on achieving the above objectives, with an emphasis on:

In setting executive compensation for fiscal 2015,2022, the Compensation Committee established salary levels approved annual equity awards and established an executive incentive cash bonus plan with performance metrics that reflected our annual operating plan and strategic priorities for fiscal 2015.2022. For fiscal 2015,2022, the Compensation Committee established Non-GAAP Net Losscontinued to use operating cash flow and financial objectives relating to ending cash balance, revenues and operating expenses and ordersas the performance objectives under our executive incentive cash bonus plan to promote our short-term and long-term business success. In setting objectives for each of the foregoing metrics, the Compensation Committee considered multiple factors so that its decisions were informed and equitable and that our executive compensation program achieved its objectives.

Stockholder Say-On-Pay Votes

At our Annual Meeting of Stockholders held on August 1, 2014,July 31, 2020, we provided our stockholders with the opportunity to cast an advisory vote on executive compensation, and in future years such advisory vote will occur triennially.compensation. Over 86%93% of the votes cast on thisthe “say on pay” vote at our Annual Meeting of Stockholders held on July 31, 2020 were voted in favor of the proposal. We have considered the results of such vote and believe the support of our stockholders for the vote proposal indicates that our stockholders are generally supportive of our approach to executive compensation. Thus, we did not make material changes to our executive compensation arrangements in response to the vote. In the future, we will continue to consider the outcome of our “say on pay” votes when making compensation decisions regarding our named executive officers. While we have historically held our advisory vote on executive compensation triennially, in this year’s advisory vote on the frequency of future advisory votes on executive compensation, the Board is recommending that future advisory votes on executive compensation be held every year (see proposal 4). Subject to the Board’s determination after considering the results of proposal 4, it is expected that in future years such advisory vote on executive compensation will occur annually.

The Compensation Committee’s Process

The Compensation Committee has a process to help ensure that our executive compensation program meets its principal objectives. In making compensation decisions, the Compensation Committee considers a wide

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variety of information, including how each compensation decision ties to its total compensation philosophy, market data and recommendations provided by the advice ofCompensation Committee’s independent compensation consultant, information from our general counsel, who also manages our human resources function and the thoughts of our chief executive officer and other Board members.

Role of Independent Compensation Consultant. The Compensation Committee has engaged Radford, part of the Rewards Solutions practice of Aon plc, or Radford, since October 2016 as its independent outside compensation consultant to advise it and develop an executive compensation strategy, to assess the competitiveness of our executive compensation and to provide recommendations with respect to both the levels and structure of compensation for our executives. In fiscal 2022, Radford assessed the competitiveness of executive compensation through comparisons with peer groups and survey sources while additionally assessing our performance to ensure compensation levels were appropriately tied to performance. During fiscal 2022, Radford advised the Compensation Committee on compensation matters for all officers and directors and met with the Compensation Committee in executive sessions without the presence of management, as requested by the Compensation Committee. Radford did not perform services for our company that were unrelated to Compensation Committee matters during fiscal 2022.

The Compensation Committee regularly reviews the services provided by its compensation advisers and believes that Radford is independent in providing executive compensation consulting services. The Committee conducted a specific review of its relationship with Radford in fiscal 2022 and determined that its work for the Compensation Committee did not raise any conflicts of interest, consistent with the guidance provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act, and by the SEC and the Nasdaq Global Select Market. The Compensation Committee continues to monitor the independence of its compensation consultant and any conflicts of interest related to services thereby on a periodic basis.

Compensation Analysis. With the assistance of Radford, in June 2022, the Compensation Committee reviewed the compensation levels of our executive officers against compensation levels at peer group companies that were selected based on the following criteria:

For the analysis of our fiscal 2022 executive compensation packages, the Compensation Committee utilized the peer group approved by the Compensation Committee in April 2022, which consisted of the following seventeen companies:

Peer Group Companies

This peer group is the same peer group used for fiscal 2021 compensation decisions. The Compensation Committee determined that the peer group remained appropriate for fiscal 2022 compensation decisions and only received updated peer group company financial information and survey data from Radford.

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The Compensation Committee utilized the peer group to provide context for its compensation decision-making. The compensation paid by peer group companies to their respective executive officers does not factor into the Compensation Committee’s determination of the peer group. After the peer group companies were selected in April 2022, Radford prepared and presented a report to the Compensation Committee summarizing the competitive data and comparisons of our executive officers to the comparable company market data utilizing publicly available data from the comparable companies and broad survey data (reflecting companies of similar size in the general and high-technology industries). We use the broad survey data in conjunction with peer group data in evaluating our executive compensation practices. The Compensation Committee does not rely upon data from any individual company participating in any of these surveys in making compensation decisions and uses the general survey data as only a reference point for evaluating our executive compensation practices, as opposed to benchmarking our executive compensation practices against the general survey data. Each of our elements of compensation is reviewed as part of this analysis and evaluation.

The above review provided the Compensation Committee with general affirmation that its compensation decisions are aligned with the marketplace and our compensation program was achieving the Compensation Committee’s objectives, as described above.

The Compensation Committee may, in its discretion, review and/or modify the selection criteria for our peer group and the peer group companies from year to year as it determines appropriate, depending on, among other factors, changes in the marketplace, acquisitions, divestitures and the business focus of us and/or our peer group companies.

Other Compensation Information.Our general counsel, who also manages our human resources function, regularly attended Compensation Committee meetings in fiscal 2022 to provide information and recommendations regarding our executive compensation program. Among other things, he performed internal analyses of marketplace practices for executive pay, made recommendations to our chief executive officer on compensation matters for all officers (other than our chief executive officer) and compiled other relevant data at the request of the Compensation Committee.

Our chief executive officer is actively involved in the executive compensation process. Our chief executive officer reviews the performance of each of the executive officers (other than his own) and makes recommendations to the Compensation Committee regarding the salary and long-term incentive awards for executive officers other than himself, as well as the executive compensation program’s impact on attracting, retaining and motivating the level of executive talent necessary to achieve and exceed our company goals. The Compensation Committee is not bound by such recommendations, but generally takes them into consideration before making final determinations about the compensation of executive officers other than our chief executive officer.

The Compensation Committee reviews the compensation for our chief executive officer and makes a recommendation to the full Board. The full Board determines the compensation of our chief executive officer.

The Compensation Committee also considers information relevant to each executive’s specific situation including the executive’s marketability and the availability or scarcity of other qualified candidates, inside and outside our company, who could replace the executive should he or she leave the Company.our company.

In determining equity compensation, the Compensation Committee considers levels of past performance, performance potential, retention risk and the value of the equity compensation needed to keep the total compensation opportunity level competitive and consistent with our compensation philosophy.

Role of Independent Compensation Consultant. The Compensation Committee has engaged Pearl Meyer & Partners LLP, or Pearl Meyer, since 2008 as its independent outside compensation consultant, to advise it and develop an executive compensation strategy, to assess the competitiveness of our executive compensation and to provide recommendations with respect to both the levels and structure of compensation for our executives. Pearl Meyer assessed the competitiveness of executive compensation through comparisons with peer groups and survey sources while additionally assessing our performance to ensure compensation levels were appropriately tied to performance. During early fiscal 2015, Pearl Meyer advised the Compensation Committee on compensation matters for all officers and directors and met with the Compensation Committee in executive session without the presence of management, as requested by the Compensation Committee. Pearl Meyer did not perform services for the Company that were unrelated to Compensation Committee matters during fiscal 2015.

The Compensation Committee regularly reviews the services provided by its compensation advisers and believes that Pearl Meyer is independent in providing executive compensation consulting services. The

Committee conducted a specific review of its relationship with Pearl Meyer in fiscal 2015 and determined that Pearl Meyer’s work for the Compensation Committee did not raise any conflicts of interest, consistent with the guidance provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act, and by the SEC and the Nasdaq Global Select Market. The Compensation Committee continues to monitor the independence of its compensation consultant and any conflicts of interest related to services thereby on a periodic basis.

Benchmarking. Because the overall structure and philosophy of our fiscal 2015 executive compensation program was generally consistent with our fiscal 2013 and fiscal 2014 programs and in an effort to save costs, the Compensation Committee utilized the peer group developed in fiscal 2013 with the assistance of Pearl Meyer for the review and determination of our fiscal 2015 executive compensation packages.

In April 2013, the Compensation Committee reviewed the compensation levels of our executive officers against compensation levels at peer group companies that were selected based on the following criteria:

For the analysis of our fiscal 2015 executive compensation packages, the Compensation Committee utilized the peer group approved in fiscal 2013 and consisted of the following ten companies:

Peer Group Companies

The Compensation Committee utilized the peer group to provide context for its compensation decision-making. The compensation paid by peer group companies to their respective executive officers does not factor into the Compensation Committee’s determination of the peer group. After the peer group companies were selected in 2013, Pearl Meyer prepared and presented a report to the Compensation Committee summarizing the competitive data and comparisons of our executive officers to the comparable company market data utilizing publicly available data from the comparable companies and broad survey data (reflecting companies of similar size in the general and high-technology industries). We use the broad survey data in conjunction with peer group data in evaluating our executive compensation practices. Survey data sources include the CHiPS Executive and Senior Management Total Compensation Survey. The Compensation Committee does not rely upon data from any individual company participating in any of these surveys in making compensation decisions and uses the general survey data as only a reference point for evaluating our executive compensation practices, as opposed to benchmarking our executive compensation practices against the general survey data. Each of our elements of compensation is reviewed as part of this analysis and evaluation.

The above review provided the Compensation Committee with general affirmation that its compensation decisions are aligned with the marketplace and our compensation program was achieving the Compensation Committee’s objectives, as described above.

The Compensation Committee may, in its discretion, review and/or modify the selection criteria for our peer group and the peer group companies from year to year as it determines appropriate, depending on, among other

factors, changes in the marketplace, acquisitions, divestitures and the business focus of us and/or our peer group companies. The Compensation Committee, together with Pearl Meyer, conducted such review and updated our peer group for purposes of determining fiscal 2016 compensation.

Risk Considerations in our Compensation Program

Our Compensation Committee does not believe that any risks arising from our compensation policies and practices are reasonably likely to have a material adverse effect on our company. Our Compensation Committee believes that any risks arising from our compensation policies and practices are mitigated by:

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Compensation Mix

The Compensation Committee relies upon its judgment and not upon rigid guidelines or formulas in determining the amount and mix of compensation elements for each executive officer. We seek to achieve our executive compensation objectives through the use of four compensation components, which are summarized in the table below.

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While the Compensation Committee independently evaluates each of the compensation components discussed in the above table, it places greater emphasis on the sum of base salary, performance-based annual cash bonuses and long-term equity incentives rather than any one component because of their combined greater potential to influence our named executive officers’ performance. The Compensation Committee believes, and our pay mix is designed to reflect, that a substantial portion of the compensation for our named executive officers should be “at risk” and aligned with our stockholders’ interests.

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Base salarySalary

Base salaries are set once per year as part of the compensation review process. In May 2015,June 2022, the Compensation Committee reviewed the base salary levels for Messrs. McGahn Henry and Maguire.Kosiba. Management recommended, and the Compensation Committee and the Board (in the case of our chief executive officer) agreed, (i) that no changes would be made to these levels forMr. McGahn’s base salary in fiscal 2015. Accordingly, the base salaries established for Messrs. McGahn, Henry2022, and Maguire for fiscal 2015accordingly, Mr. McGahn’s salary remained at $500,000, $312,000$525,000, and $295,000, respectively. (ii) to increase Mr. Kosiba’s base salary from $345,000 to $365,000. Such change to Mr. Kosiba’s base salary was effective as of April 1, 2022. The base salary increase for Mr. Kosiba was based on a review of his performance during fiscal 2021 relative to both his and our company’s goals and competitive salary data provided by our Compensation Committee’s independent compensation consultant, Radford.

The Compensation Committee considered the base salary levels for these executives to be appropriate in light of each executive’s level of job responsibility and individual performance, overall company performance and the competitiveness of these executives’ salaries with salaries paid to executive officers in similar positions, industries and geographic locations. Base salaries for executive officers have not increased in the past 3 years, including fiscal 2015.

Performance-Based Annual Cash Bonuses

The Compensation Committee believes cash bonuses are an important factor in rewarding and motivating our executive officers. The Compensation Committee establishes a cash incentive plan for our executive officers on an annual basis, typically early in the fiscal year.

On June 23, 2015,7, 2022, the Compensation Committee and the Board (in the case of our Boardchief executive officer) approved an executive incentive plan for fiscal 20152022 covering all of our executive officers. The overall structure of our fiscal 2015 executive plan utilized the same metrics, metric weightings and payout framework as the fiscal 2014 plan, but extended the maximum payout under each metric from 156% to 200% of target based on a corresponding increase in performance from 114% to 125% of each metric. The Compensation Committee and our Board believe that extending the maximum payout under each metric further aligns the incentives under our executive incentive plan with our stockholders’ interests because it represents “at risk” compensation and rewards our executive officers to the extent that there is extraordinary company performance relative to a metric target.

Under our executive incentive plan for fiscal 2015,2022, the Compensation Committee established Non-GAAP Net Loss;continued to use operating cash flow and other financial objectives relating to ending cash balance, revenues and operating expenses and orders; and individual contributions to our financial and non-financial objectives as the performance metrics for the payment of cash bonus awards for fiscal 2015.2022. For each executive officer, the Compensation Committee assigned the following weighting to each such metric:

Under the terms of other financial objectives duringthe fiscal 2015 as determined by our2022 executive incentive plan, the Compensation Committee and the Board (in the case of our chief executive officer) or the Compensation Committee — 40%; and

The following summarizes the cash bonus opportunity for the named executive officers under each performance metric under the fiscal 20152022 executive incentive plan.

Milestones and achievement for the Non-GAAP Net Loss (40%operating cash flow (50%) bonus measure: All of the named executive officers hadwere subject to the same Non-GAAP Net Lossoperating cash flow threshold that had to be met before payout could be earned. The fiscal 20152022 milestones and achievement levels for our company’s Non-GAAP Net Lossoperating cash flow measure are shown below. An executive’s payout on this measure was determined through a numerical calculation based on our company’s Non-GAAP Net Loss (rounded to the nearest milestone)operating cash flow so the Compensation Committee (or, in the case of our chief executive officer, our Board) did not need to apply discretion.

the achievement of specific objectives relating to our performance within a specified period. The Compensation Committee believes shares of restricted stock provide an equallya more motivating form of incentive compensation than stock options, minimize stock compensation expenses and reduce the potential dilution of our shares.

We generally grant stock options and shares of restricted stock to executive officers and other employees (i) upon their initial hire, (ii) in connection with a promotion, and (iii) annually based on merit. To determine the amount of stock-based awards granted to executive officers, our Compensation Committee (or, in the case of our chief executive officer, our Board) considers the performance of the individual and our company, historic stock-based awards and the awards made to those in similar positions at comparable companies.

Our Board and Compensation Committee typically meet in earlyor around May to review company performance for the prior fiscal year. At such time, the Compensation Committee (or, in the case of our chief executive officer, our Board) also reviews the performance of the executive officers over the prior fiscal year and grants restricted stock or stock optionsequity awards, if any, to the executive officers. In fiscal 2015,2022, the Compensation Committee and Board met in May to grantOctober and awarded time-based and performance-based restricted stock awards to Messrs. McGahn Henry and Maguire.Kosiba under our 2022 Stock Incentive Plan.

In fiscal 2015,2022, when considering equity grants to our executive officers, the Compensation Committee (or, in the case of our chief executive officer, our Board) considered:

Based on such considerations, the Compensation Committee (or, inrecommended, and the caseBoard awarded shares of our chief executive officer, our Board) awarded time-based restricted stock and performance-based restricted stock to each executive officer with the understanding that no award is expected to be made in fiscal 2016 due to our limited share pool under the 2007 Stock Incentive Plan.officer. Messrs. McGahn Henry and MaguireKosiba received time-based restricted stock awards of 100,000 50,000 and 50,00075,000 shares, respectively, each of which vests over three years in equal annual installments on each of June 19, 2023, May 19, 2024 and May 19, 2025, subject to the executive officer’s continued employment.

Messrs. McGahn and Kosiba also received performance-based restricted stock awards of 150,000 and 50,000 shares, respectively. The performance measure on which vesting of these performance-based shares is contingent relates to cumulative organic revenues over the three fiscal year period beginning April 1, 2022 and ending March 31, 2025, or the Performance Period. Vesting of these performance-based shares is also subject to the executive officer’s continued employment through the Board’s determination of performance following the end of the Performance Period. The Compensation Committee recommended and the Board approved the application of this performance measure for the fiscal 2022-2024 performance cycle because they believe that such measure is aligned with maximizing long-term stockholder value.

For these performance-based restricted stock awards, we defined cumulative organic revenues as our company’s gross revenues during the Performance Period, but excluding the effects of acquired revenues, product discontinuances and divestitures, and subject to other adjustments as deemed necessary or advisable by our Board in good faith to achieve the purposes of the award. Organic Grid revenues are calculated in the same manner for gross revenues and related adjustments in our Grid segment only.

These performance-based restricted stock awards will vest based upon our attainment of the performance goal for the Performance Period. If the performance goal is met at maximum performance levels, then each executive officer will earn 100% of the performance-based shares awarded. The amount of performance shares that will vest based on threshold, target or maximum performance, as applicable, are set forth in the table below. When the result of the cumulative organic revenues performance measure lands between two goals (for example,

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between “target” and “maximum”), then the number of performance-based shares that will vest will be calculated on a three-yearlinear basis (rounded to the nearest whole share).

Benefits

We offer a comprehensive benefits package to all full-time employees, including health and dental insurance, life and disability insurance and a 401(k) plan. Executive officers are eligible to participate in all of our employee benefit plans.plans on the same terms as our other full-time employees generally. The 401(k) plan includes a matching component where we will match $0.50 on each dollar of an employee’s contribution up to a maximum of 6 percent of his or her wages in the form of our stock. The employee contributions are subject to the maximum limitations as set forth in the Internal Revenue Code of 1986, as amended, or the Code.

Severance and Change-in-Control Benefits

We have entered into agreements with each of our executive officers that provide them with severance benefits in the event of the termination of their employment under specified circumstances, including termination following a change in control of our company. In addition, the stock options and restricted stock awards we grant to our executive officers provide for full acceleration of vesting upon a change in control of our company. These agreements, along with estimates of the value of the benefits payable under them, are described below under the caption “Employment Agreements and Severance Agreements with Executive Officers.” We believe providing these benefits helps us compete for and retain executive talent and that our severance and change-in-control benefits are generally in line with those provided to executives by comparable companies.

Tax Considerations

The Internal Revenue Service, pursuant to Section 162(m) of the Code, generally disallows a tax deduction for all compensation in excess of $1,000,000 paid to certain current or former executive officers at our chief executive officercompany. The Compensation Committee believes that stockholder interests are best served by not restricting the committee’s flexibility in structuring compensation plans and reserves the right to certain other officers (other than our chief financial officer). Certainpay compensation including qualified performance-based compensation,that will not be subject to the deduction limit if certain requirements are met. We generally intend that our stock option awards comply with exemptions in Section 162(m) of the Code so that the compensation remains tax deductible to us. We periodically review the potential consequencesas a result of Section 162(m) of the CodeCode.

Prohibitions on the other componentsHedging, Pledging and Short Sales

Our Board has adopted an Insider Trading Policy, which applies to all of our directors, officers, including our named executive compensation program. We may structure arrangements to comply withofficers, and employees, certain of their family members and any entities they control. The policy prohibits the exemptionspurchase of financial instruments such as prepaid variable forward contracts, equity swaps, collars, and exchange funds, or otherwise engaging in Section 162(m) of the Code where we believe it to be feasible. However, the Compensation Committee may, in its judgment, authorize compensation paymentstransactions that do not comply with the exemptions in Section 162(m) of the Code when it believes that such payments are appropriate to attract and retain executive talenthedge or offset, or are otherwisedesigned to hedge or offset, any decrease in the best interestsmarket value of our company’s equity securities. In addition, the Company.