Company: SNPS
Filing Date: 2025-02-14
Form Type: DEF 14A
Source: 0000883241-25-000008
Chunk: 5

Company: SYNOPSYS INC
Filing Date: 2025-02-14
Form: DEF 14A
Chunk 5
---
 employees. Like other technology companies, we actively compete for highly qualified employees, especially technical employees. Our equity program is a key component of our strategy to attract and retain key individuals, and the share requirements of our equity program have grown along with our company.

Important Features of the 2006 Employee Plan

| Our 2006 Employee Plan includes provisions that are designed to protect our stockholders’ interests and to reflect corporate governance best practices, including: 
 •Stockholder approval required for additional shares.                                                                                                              
 •No discounted stock options or stock appreciation rights.                                                                                                         
 •Repricing and cash-out of underwater options not allowed.                                                                                                         
 •No liberal share recycling.                                                                                                                                       
 •Seven-year maximum term for equity awards.                                                                                                                        
 •Full-value awards deplete share reserve at a higher multiple.                                                                                                     
 •Limitations on dividends and dividend equivalents.                                                                                                                
 •No liberal corporate transaction provisions.                                                                                                                      
 •Limit on stock awards granted to any participant.                                                                                                                 
 •No automatic grant provisions to any participant.                                                                                                                 
 •No tax gross-up provisions.                                                                                                                                       |

#### 2025 Proxy Statement7
| Proxy Statement Summary |

Purpose

The primary goal of the amendment of the Purchase Plan is to provide us with a sufficient reserve of common stock so we can continue to offer eligible employees the opportunity to purchase our common stock at a discount. We believe the Purchase Plan is an important employee retention and recruitment vehicle and helps align the interests of employees with those of our stockholders.

Important Features of the Employee Stock Purchase Plan

The Purchase Plan includes provisions that protect our stockholders’ interests and reflect corporate governance best practices, including:

| Purchase price is at least 85 percent of fair market value. |     | Offering periods do not exceed 27 months. |     | The number of shares allocated to the Purchase Plan is less than 10% of our outstanding shares overall. |

#### 8
| Proxy Statement Summary |

Compensation Governance and Our Compensation Philosophy

We have designed our executive compensation program to attract, motivate and retain a team of highly qualified executives who will drive our success. To motivate and reward our named executive officers (NEOs) for work that improves our long-term business performance and increases stockholder value, we have set out the following objectives:

| Pay for Performance                                                      |     | Internal Pay Equity                                                                                      |     | Competitiveness                                                                         |
| Align executive compensation to the success of our business objectives   |     | Promote teamwork among executives by considering internal pay equity in setting