Company: KD
Filing Date: 2025-06-16
Form Type: DEF 14A
Source: 0001140361-25-022676
Chunk: 40

Company: Kyndryl Holdings, Inc.
Filing Date: 2025-06-16
Form: DEF 14A
Chunk 40
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 of PSUs and 35% of the total target award opportunity in the form of time-vesting RSUs for each of our executive officers.Beginning with fiscal 2025, our CHC Committee determined to grant annual long-term incentive awards in early June of each year, shortly following our public announcement of our financial results for the prior completed fiscal year and publication of our outlook for the current fiscal year to align with market practice. |

RSUs. The RSUs vest in four equal annual installments beginning on the anniversary of the grant date, subject to the NEO’s continued employment with the Company through each applicable vesting date. PSUs. The CHC Committee determined to link the vesting of the PSUs to the achievement of the Company’s business objectives and the creation of stockholder value by basing the vesting of the PSUs on the Company’s adjusted operating cash flow, total signings and TSR relative to that of the companies in the S&P MidCap 400 Index, in each case, over the three-year performance period. The PSUs vest upon the CHC Committee’s certification of the extent to which the performance criteria have been achieved during the applicable performance period. The table below sets forth these performance metrics, their relative weightings and the CHC Committee’s rationale for the selection of each metric.

| 46|KYNDRYL2025 PROXY STATEMENT |

TABLE OF CONTENTS

| Metric(1)                       |     | Weighting |     | Rationale for Selection                                                                                                                                                                                                                                     |
| Adjusted Operating Cash Flow(2) |     | 50%       |     | •Used by management to evaluate our operating results, plan strategic investments and assess our ability and need to incur and service debt                                                                                                                 
 •Used by investors to assess our business                                                                                                                                                                                                                   
 •CHC Committee believes this metric is an indicator of the strength of our operating results                                                                                                                                                                |
| Total Signings(3)               |     | 25%       |     | •Used by management to provide insight into the Company’s potential future revenue and as a tool to monitor performance of the business, including the business’ ability to attract new customers and sell additional scope into our existing customer base 
 •Used by investors to assess our business                                                                                                                                                                                                                   
 •CHC Committee believes this metric is an indicator of value creation in our early stages as an independent company to execute on our strategy to return to profitable growth                                                                               |
| Relative TSR(4)                 |     | 25%       |     | •Reflects the performance