Company: VHC
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001140361-25-015742
Chunk: 19

Company: VirnetX Holding Corp
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 19
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 the Board and each committee spend a portion of their time reviewing and discussing these specific risk topics. While the Board is ultimately responsible for risk oversight for the Company, the three Board committees assist the Board in fulfilling its oversight responsibilities with respect to certain areas of risk. The audit committee assists the Board in fulfilling its oversight responsibilities with respect to risk management in the areas of financial reporting, internal controls and compliance with legal and regulatory requirements. The compensation committee assists the Board in fulfilling its oversight responsibilities with respect to the management of risks arising from our compensation policies and programs. The nominating and corporate governance committee assists the Board in fulfilling its oversight responsibilities with respect to the management of risks associated with Board organization, membership and structure, succession planning for our directors and executive officers, cybersecurity and corporate governance. Risk Assessment of Compensation Policies The Company notes that:

| • | the Company’s annual incentive compensation is based on performance that promotes disciplined progress towards longer-term Company goals; |

| • | the Company does not offer significant short-term incentives that might drive high-risk investments at the expense of long-term Company value; |

| • | the Company’s compensation programs are weighted toward offering long-term incentives that reward sustainable performance; and |

| • | the Company’s compensation awards are established at reasonable and sustainable levels, as determined by a review of the Company’s economic position and prospects, as well as the compensation offered by comparable companies. |

The Company’s compensation policies and practices are intended not to foster risk taking above the level of risk associated with the Company’s business model. Accordingly, the Company believes it has a balanced pay and performance program that does not promote excessive risk taking. Risk Assessment of Cybersecurity Threats The Company takes a comprehensive approach to cybersecurity risk management and makes securing the data that our customers and other stakeholders entrust to us a top priority. Our Board and our management are actively involved in the oversight of our cybersecurity risk management program and the nominating and corporate governance committee of the Board oversees our cybersecurity risk processes and policies. The nominating and corporate governance committee receives regular reports from senior management about the prevention, detection, mitigation and remediation of cybersecurity risks and information security vulnerabilities. The Board receives regular updates from the nominating and corporate governance committee on such oversight and communications with senior management. Corporate Governance Guidelines and Code of Ethics We have adopted Corporate Governance Guidelines that address items such as the qualifications and responsibilities of our directors and director candidates and corporate governance policies and standards applicable to us in general. We have adopted a Code of Ethics for all employees and directors in accordance with the requirements of