Company: PRME
Filing Date: 2025-07-02
Form Type: PRE 14A
Source: 0001193125-25-155000
Chunk: 14

Company: Prime Medicine, Inc.
Filing Date: 2025-07-02
Form: PRE 14A
Chunk 14
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 Company’s continued focus on stock price recovery and growth.

If Proposal 1 is not approved by our stockholders, then we will not implement the Option Repricing. However, we may need to consider
alternative compensation structures to achieve the objectives for which the Option Repricing was designed.

Determination to Pursue the Option Repricing

Our compensation program is designed to align with the interests of our stockholders by reflecting a pay-for-performance philosophy that supports our business strategy. A core principle of this program is our commitment to long-term equity incentive compensation, which ensures that our employees, executive
officers, and directors all participate in the Company’s long-term value creation alongside our stockholders. We have historically granted stock options under the Plans consistent with the view that stock-based incentive compensation
opportunities play a significant role in our ability to attract, motivate and retain qualified individuals who we believe best represent our Company values and can make meaningful contributions towards achieving our purpose of delivering a new class
of differentiated one-time curative genetic therapies to address the widest spectrum of diseases by deploying our Prime Editing technology. While our compensation packages generally include a number of
different components, we believe that long-term equity compensation provides our employees, executive officers and members of our Board with a strong link to our long-term performance and helps create an ownership culture by encouraging them to work
toward our success, aligning their interests with those of our stockholders, and rewarding efforts that drive sustained increases in stockholder value. Given the intense competition for experienced and talented individuals with critical and high
demand skills in our industry, stock options remain an important part of our incentive compensation.

In considering whether to implement
the Option Repricing, the Board determined that adverse changes in the market price of our common stock since the Eligible Options were granted could materially interfere with our efforts to retain the services of the Eligible Optionholders. In
recent years, the stock market in general, and the market for pharmaceutical and biotechnology companies in particular, has experienced extreme price and volume fluctuations, often unrelated or disproportionate to changes in the operating
performance of the affected companies. As a biotechnology company, the market price of our common stock has historically been volatile, reflecting the risks and uncertainties inherent in the development of product candidates. Since 2024, the market
price of our common stock has experienced material fluctuations and declined from a high of approximately $9.39 on February 27, 2024 to a low of approximately $1.15 on April 8, 2025.