Company: ANY
Filing Date: 2025-03-28
Form Type: PRE 14A
Source: 0001628280-25-015485
Chunk: 50

Company: Sphere 3D Corp.
Filing Date: 2025-03-28
Form: PRE 14A
Chunk 50
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 corporate and individual performance. Decisions by the Compensation Committee on our executive compensation programs are subjective and the result of our business judgment, which is informed by the experiences of the Compensation Committee members. The Compensation Committee may also utilize outside compensation consultants. During fiscal year 2024, the Compensation Committee did not utilize an independent compensation consultant; however, it did utilize NFP Compensation Consultants (“ NFP” ) as its independent compensation consultant during fiscal year 2023 and the Compensation Committee maintained the same compensation strategy recommended by NFP in 2023 when making compensation decisions during fiscal year 2024.

Our NEOs do not have any role in determining their own compensation, although the Compensation Committee did consider the recommendations of the former Chief Executive Officer in setting compensation levels for our NEOs other than herself. The primary components of our executive compensation program are base salary, performance bonuses and long-term equity incentive awards.

Base Salaries. Base salaries are primarily intended to attract and retain highly qualified executives by providing them with fixed, predictable levels of compensation. Such base salaries are subject to periodic review and adjustment by the Compensation Committee.

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Performance Bonuses. The Compensation Committee did not approve a bonus plan for fiscal year 2024.

Long-Term Equity Incentive Awards. Long-term equity incentives are intended to align our NEOs’ interests with those of our shareholders as the ultimate value of these awards depends on the value of our common shares. We have historically granted equity awards in the form of stock options with an exercise price that is equal to the per-share closing market price of our common shares on the grant date. In recent years, restricted stock units have also been granted as provided for under our 2015 Plan. The Compensation Committee believes that stock options are an effective vehicle for aligning the interests of our executives with those of our shareholders as the executive will only realize value on their options if the share price increases during the period between the grant date and the date the stock option is exercised. The stock options and restricted stock units function as a retention incentive for the NEOs as they typically vest over a multi-year period following the date of grant. Restricted stock units, which are payable in our common shares, also link the interests of the award recipient with those of our shareholders as the potential value of the award is directly linked to the value of our common shares. Our NEOs’ equity awards are subject to accelerated vesting in certain circumstances under their agreements with us are described below.

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