Company: DLX
Filing Date: 2025-03-10
Form Type: DEF 14A
Source: 0000027996-25-000107
Chunk: 61

Company: DELUXE CORP
Filing Date: 2025-03-10
Form: DEF 14A
Chunk 61
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 grant stock options, stock appreciation rights (SARs), restricted stock, RSUs, PSUs, dividend equivalents and other stock-based awards to employees, officers, consultants, independent contractors and non-employee directors. Shares subject to any outstanding awards under our prior stock incentive plans that are forfeited, canceled or reacquired by the company will also become available for re-issuance under the Stock Plan. All shares subject to awards, regardless of the type of award or whether the award is full value or appreciation only, count against the Stock Plan’s reserve on a 1:1 basis for each share subject to the award.

In determining the additional number of shares to authorize for issuance pursuant to Amendment No. 2, the Committee considered, among other factors, historical amounts of equity awards granted and potential future grants over the next several years. As set forth in the table below, our three-year average "burn rate" is 2.17% for fiscal years 2022 through 2024. For purposes of calculating the burn rate, performance share units are counted in the year in which the units are earned and vested.

|                                                     |     |  2024 |            |   | 2023 |            |   | 2022 |            |   |
| Weighted Average Shares of Common Stock Outstanding |     |       | 44,154,000 |   |      | 43,553,000 |   |      | 43,025,000 |   |
| Restricted Stock Units Granted                      |     |       |    925,000 |   |      |    987,000 |   |      |    770,000 |   |
| Performance Share Units Earned and Vested           |     |       |     65,000 |   |      |          — |   |      |     93,000 |   |
| Annual Burn Rate                                    |     |       |       2.24 | % |      |       2.27 | % |      |       2.01 | % |
| Three-Year Average Burn Rate                        |     | 2.17% |            |   |      |            |   |      |            |   |

Potential dilution, or overhang, is a common measure to assess the dilutive impact of equity plans. Total potential dilution is equal to (i) the number of shares available to be granted as future equity awards plus the number of shares subject to outstanding awards, divided by (ii)