Company: SNPS
Filing Date: 2025-02-14
Form Type: DEF 14A
Source: 0000883241-25-000008
Chunk: 77

Company: SYNOPSYS INC
Filing Date: 2025-02-14
Form: DEF 14A
Chunk 77
---
 from Mr. Mahoney's prior equity compensation level to align with our growth objectives and to further retentive aspects.                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| John F. Runkel, Jr.                                              |     |                      |  2,300,000 |     |                      |  2,300,000 |     |             |     — |     | No increase.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

#### 2025 Proxy Statement73
| PROPOSAL 4 — Advisory Vote to Approve Executive Compensation |

Equity Element Allocation. After choosing the estimated target dollar value for each NEO’s annual equity awards, the Compensation Committee sought to allocate approximately 50% of the dollar value to PRSUs to ensure that a significant portion of each NEO’s annual equity awards is tied to key performance goals, with the remaining 50% of the dollar value equally divided between RSUs and stock options. To determine the target number of annual PRSUs and RSUs that were granted to the NEOs in fiscal 2024, the Compensation Committee used our closing stock price on the grant date to calculate an award worth approximately 75% of the estimated target dollar value, with approximately 50% allocated towards PRSUs and approximately 25% allocated towards RSUs. For annual stock options, the Compensation Committee used a Black-Scholes option-pricing model to estimate the fair value of a stock option share on the expected grant date.

Equity Vesting. Annual stock options vest as to 25% of the shares subject to the option grant on the first anniversary of the grant date and as to 3/48ths of such shares per quarter thereafter, such that all shares subject to the option will be fully vested on December 12, 2027, subject to the NEO providing continuous services to us. Annual RSUs vest as to 25% of the shares subject to the award on each anniversary of the vesting commencement date, such that the entire award will be fully vested on December 8, 2027, subject to the NEO providing continuous services to us. The Fiscal 2024 Annual PRSUs vest over a three-year performance period from fiscal 2024 to 2026. For further detail, see footnote 13 to the “Outstanding Equity Awards at Fiscal 2024 Year-End” table on page 87.

Fiscal 2024 Annual PRSU Terms. For our Fiscal 2024 Annual PRSUs, the Compensation Committee selected Synopsys’ compound annual growth rate of revenue