Company: RGNX
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0000950170-25-052069
Chunk: 71

Company: REGENXBIO Inc.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 71
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 continued research but the development of our commercial efforts at this critical juncture. Management believes that the requested share reserve is essential to the Company’s ability to continue to grant equity incentives for at least the next two years, which is vital to our near-term efforts to retain and attract the highly skilled individuals required to support our continued growth in the extremely competitive labor markets in which we operate. • We expect to have a substantial number of options expiring unexercised after their ten-year term because they are out-of-the-money. o The decline in our stock price over the past few years has resulted in 9.93 million of our 9.99 million options outstanding as of December 31, 2024 being out-of-the-money (more than 99%). At that date, the closing price of our common stock was $7.73 per share, and the weighted-average exercise price of our options outstanding was $29.48 per share. Unless our stock price increases considerably, we expect a significant number of out-of-the-money options to expire unexercised over the next several years. This is a significant retention issue for the Company. Accordingly, it is vitally important that the Company have the requested shares available in reserve for annual equity awards and other equity awards made to employees after the 2025 annual meeting so that we can continue to provide effective equity incentives to our employees. Our Burn Rate Has Been Consistently Reasonable The table below sets forth our net equity burn rate for the past three fiscal years. Our burn rate has risen moderately in the past two years, but our three-year average burn rate is consistent with that of our peers. Further, the increase in the net number of awards granted in years 2023 and 2024 was due to a significant decrease in our share price, which had the effect of lowering the grant date fair value per share of awards granted. The value of the equity awarded has been consistent with our peers as analyzed by our compensation consultant and we seek to maintain our equity compensation program inline with our peers. Our Board monitors our burn rate regularly, and our Compensation Committee incorporates burn rate and share utilization as considerations in its equity compensation decisions.

| Year               |     |    Awards Granted, 
 Net of Forfeitures 
    and Expirations 
 (Options and RSUs) |     |    Weighted-average 
       Common Shares 
 Outstanding (Basic) |     | Equity Burn Rate 
 (Net)            |     | Grant Date Fair Value of Awards Granted 
                             (thousands