Company: PRME
Filing Date: 2025-07-02
Form Type: PRE 14A
Source: 0001193125-25-155000
Chunk: 16

Company: Prime Medicine, Inc.
Filing Date: 2025-07-02
Form: PRE 14A
Chunk 16
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 as having little or no incentive or retention value due to the disparity between the exercise prices and the current stock price. The Board believes that the Option Repricing is in the best interests of the Company and its stockholders, not only to restore the incentive and retentive value of the Eligible Options, but also to improve morale among our employees and directors to ensure alignment and motivation to execute on the Company’s reprioritized strategy, drive value for our stockholders, and share in that value going forward. Prior to approving the Option Repricing, the Board reviewed and considered an analysis prepared by Alpine Rewards, LLC (“Alpine”), the Compensation Committee’s independent compensation consultant, and presented to the Board, as well as several alternatives to the Option Repricing. These alternatives included:

| • |     | Extending an offer to exchange underwater options for another form of equity compensation. However, any                                                       
 exchange proposal would have required compliance with the SEC’s tender offer rules and result in additional costs, complexities and burdens on our resources. |

| • |     | Granting additional options or other types of equity awards. However, this would result in increasing our                                                                                                                                               
 overhang of outstanding equity awards, and we believe that adjusting already outstanding options can realign the interests of the Eligible Optionholders with those of our stockholders in a less dilutive manner that would better serve the interests 
 of our stockholders.                                                                                                                                                                                                                                    |

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| • |     | Waiting out the volatility in anticipation of future clinical results and stock price appreciation. However,                                                                                                                                            
 we are concerned that if we do not improve the Eligible Optionholders’ prospects of receiving long-term value from their options, we will undermine their long-term commitment to the Company and jeopardize our ability to retain the Eligible         
 Optionholders whose knowledge, skills, and performance are critical to our success in the extremely competitive biotechnology industry, especially during a period when retention is essential as the Company continues to execute on its reprioritized 
 strategy. We will also forgo an opportunity better to align their interests with the interests of our stockholders.                                                                                                                                     |

| • |     | Increase cash compensation. However, significant increases in cash compensation would substantially increase            
 our compensation expenses and reduce our cash on hand, which could adversely affect our business and operating results. |

The Board ultimately determined that the Option Repricing would be the most effective tool in obtaining our objective of realigning interests of the Eligible Optionholders with those of our stockholders because it provides a direct and straightforward