named executive officers are set by the Compensation Committee by reference to similar amounts paid by a group of hispublicly-traded peer companies assembled with the advice of the Compensation Committee’s independent compensation consultant for benchmarking purposes. Current total cash compensation, comprising base salary which reflectsand target non-equity incentive compensation is consistent with the fact that his target bonus was increased from 75% to 100% of base salary effective October 28, 2021. Mr. Spaeth’s and Mr. Collins’ target bonusesmedian range for 2021 were 60% and 100% of base salary, respectively.the peer group.
Our AnnualNon-Equity Incentive Plan governs annualPerformance and Payments
Funding for 2022 non-equity incentive plan compensation. Funding for 2021 bonusescompensation for the named executive officers and other management-level participants in the 2021Company’s 2022 Annual Incentive Plan was based upon the Company’s 2022 adjusted earnings before interest, taxes, depreciation, and amortization (“AEBITDA”) for 2021.. The plan provided for funding at 50% of the aggregate target of bonusesincentive payments for all participants in the plan if the Company had 20212022 AEBITDA at a minimum threshold of $144,200,000 before$164,400,000 after bonus expense, 100% of target if the Company had 20212022 AEBITDA at a target level of $164,800,000 before$185,000,000 after bonus expense, and 150% of target if the Company had 20212022 AEBITDA at a maximum threshold of $185,400,000$205,600,000 before bonus expense. The plan provided for bonus funding between 50% and 100% for 20212022 AEBITDA between the minimum threshold and target, and for bonus funding between 100% and 150% for AEBITDA between target and the maximum threshold, in each case determined using straight-line interpolation. The plan did not provide for funding at AEBITDA below $144,200,000,$164,400,000, and the plan did not provide for funding in excess of 150% of target even if AEBITDA exceeded $185,400,000. $205,600,000. These goals were considered rigorous, as they represented growth over actual 2021 AEBITDA of 2.8% at threshold, 15.6% at target, and 28.5% at maximum.
The bonus funding is an aggregate pool for all participants. The actual bonus paid to each participant could be lower or higher (up to 150% of the participant’s target amount) based on the participant’s individual performance.
For participants in the 2021 Annual Incentive Plan who also participated in our Annual Incentive Plan for 2020, the Compensation Committee authorized supplemental funding of up to approximately $1.7 million in bonuses for 2021 on a Dollar-for-Dollar basis for the first $1.7 million of 2021 AEBITDA in excess of the target AEBITDA goal for 2021, with any AEBITDA performance in excess of $1.7 million over target to provide additional bonus funding in accordance with the plan’s payout curve for outperformance. This supplemental funding was intended to motivate participants (including our named executive officers) whose bonuses for 2020 were negatively impacted by the effect of the coronavirus pandemic on AEBITDA achievement for 2020.
Actual AEBITDA achievement for 2022 was $188,992,000 net of bonus expense, representing growth of 18.1% over actual 2021 was $171,900,000 (or 103.2% of the target amount). Net of the $1.7 million supplemental funding described in the preceding paragraph, this resultedAEBITDA, resulting in bonus funding at 112.5%110% of the target amount for participants in the Annual Incentive Plan who did not participate in the plan for 2020. When combined with the supplemental funding, bonus funding for our named executive officers and other participants in the plan who also participated in our Annual Incentive Plan for 2020 totaled approximately 125% of the target amount.Plan. Based on this achieved funding and individual performance, the Compensation Committee authorized payment of a bonusnon-equity incentive compensation for 20212022 for each of our named executive officers in an amount equal to approximately 125%110% of the executive’s target amount based upon weighted average salary for 2021 and, in Mr. Abramo’s case, a weighted average target bonus of 79% of salary based upon the fact that his target bonus increased from 75% of salary to 100% effective October 28, 2021.amount. The amounts of these bonusespayments are shown in the “Non-Equity Incentive Plan Compensation” column of the Summary Compensation Table above.
Equity Incentive Compensation
In connection withWe provide equity-based incentive compensation to our named executive officers because it links our long-term results achieved for our stockholders and the IPO andrewards provided to named executive officers, thereby ensuring that the officers have a continuing stake in our long-term success.
Pre-IPO Equity Awards
Before the Company’s initial public offering on October 28, 2021, equity awards were issued pursuant to our 2021 Omnibusthe HireRight GIS Group Holdings LLC Equity Incentive Plan (the “EIP”) in the form of options to purchase units in the Company’s predecessor HireRight GIS Group Holdings LLC (“HGGH”). In connection with the initial public offering, the Company implemented its 2021 Omnibus Incentive Plan (the “Omnibus Plan”),. Beginning October 28, 2021, all equity awards have been made, and future awards will be made, only under the Omnibus Plan; the EIP continues only for purposes of governing awards made before the initial public offering and still outstanding.
In 2018, each of our named executive officers received an option to purchase units of HGGH under the EIP, with 50% of each option vesting over four years based on continued service, and the remaining 50% vesting based on achievement by the Company’s private equity investors of specified cash returns on their investment in the Company (the multiple of invested capital or “MOIC Options”). Mr. Abramo also received an additional MOIC Option that was to vest 100% based on achievement of the specified cash return goals. These 2018 option awards were the only equity awards made to the named executive officers before the Company’s initial public offering on October 28, 2021.
IPO Equity Awards
In connection with the IPO, these awards under the EIP were converted into options to purchase shares of the Company’s common stock. In March 2022 the private equity investors had sold none of their shares in the Company and none of the MOIC Options had vested. At that time, the compensation committee approved