Company: FSLY
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001140361-25-015174
Chunk: 37

Company: Fastly, Inc.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 37
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4, we continued our engagement with our institutional stockholders. Over the course of these meetings with our institutional stockholders, we received valuable feedback on our executive compensation and governance program, policies, and practices. The feedback during 2024 was consistent with the themes heard in 2023 which were anchored around the two main design elements described further below. In mid-2024 through early 2025, the Compensation Committee met multiple times and worked with their independent consultant to review this feedback and consider how to incorporate it into the 2025 compensation programs while also recognizing (a) the existing metrics in the incentive programs for 2024 (revenue and

2025 PROXY STATEMENT | 27

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adjusted EBITDA margin) remain critical drivers for the business and (b) the company faces significant challenges in being able to forecast long-term goals in a volatile operating environment. The table below summarizes the combination of actions taken in both 2024 and in early 2025 to respond to stockholder feedback:

28 | 2025 PROXY STATEMENT

TABLE OF CONTENTS

| What We Heard from Stockholders                                   |     | Actions in Response to Feedback                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Mix of Performance-Based LTI                                      
 Stockholders expressed a preference for 50% performance-based LTI |     | In 2024, we increased the mix of our CEO’s performance-based LTI to 60% of LTI (based on the intended target value of the PSUs granted) (up from 50% in 2023), which reflects the feedback from stockholders in 2023 and was balanced against maintaining the same PSU design for 2024. We did not make any changes to the other non-CEO Named Executive Officers’ LTI mix which remained at 30% performance-based (based on the intended target value of the PSUs granted).                                                                                                                                                                                                                                                                                                                                                                                                   
 In 2025, the Compensation Committee revisited the mix of the Named Executive Officers’ LTI in connection with the design changes (see above) and the feedback from stockholders. Specifically, the Compensation Committee determined to grant 50% of the CEO’s 2025 award in performance-based LTI (down from 60%) and 40% of the non-CEO Named Executive Officers’ 2025 award (up from 30%). This led to an LTI mix for the CEO that is 15% based on 3-year rTSR, 35% based on 1