Company: MRCY
Filing Date: 2025-09-10
Form Type: DEF 14A
Source: 0001049521-25-000029
Chunk: 32

Company: MERCURY SYSTEMS INC
Filing Date: 2025-09-10
Form: DEF 14A
Chunk 32
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 the compensation of our named executive officers, as disclosed in this proxy statement.

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PROPOSAL 3: APPROVAL OF 2025 LONG TERM INCENTIVE PLAN</div>

In July 2025, our Board of Directors adopted, subject to the approval of our shareholders, our 2025 Long Term Incentive Plan (the "2025 Plan"), and delegated authority to our Human Capital and Compensation Committee to make further revisions to the 2025 Plan prior to the submission of the 2025 Plan for approval by our shareholders. In September 2025, our Human Capital and Compensation Committee adopted the 2025 Plan, subject to shareholder approval.

#### Purpose
The purpose of the 2025 Plan is to enable Mercury to implement a compensation program that correlates pay opportunities with shareholder value, focuses management on long-term, sustainable performance, and provides the Company with a competitive advantage in attracting, retaining, and motivating officers, employees, non-employee directors, and other service providers.

#### Expected Share Pool Duration
As described below, we are requesting that shareholders approve an initial reserve of 1,900,000 shares of our common stock for future awards under the 2025 Plan, with each share underlying stock options or stock appreciation rights counting as 0.5 shares against this reserve. Accordingly, if approved, the Company would be authorized to issue a maximum of 2,800,000 shares underlying stock options and stock appreciation rights, or 1,900,000 shares underlying other awards, under the 2025 Plan. We believe the initial share reserve requested for the 2025 Plan should last for approximately three to four fiscal years depending on our organic growth, the size and composition of our workforce, future M&A transactions, and changes in the price of our common stock. The 2025 Plan is proposed to replace our Amended and Restated 2018 Stock Incentive Plan (the "2018 Plan"), which is our current equity compensation plan. In the event that shareholders approve the 2025 Plan, we will no longer issue awards under the 2018 Plan.

#### Corporate Governance and Best Practice Highlights
The 2025 Plan and our corporate guidelines reflect best practices in equity compensation:

• the plan does not provide accelerated vesting of awards solely on account of a change in control (accelerated vesting is conditioned upon a qualifying termination following a change in control or an acquiring company refusing to assume outstanding awards);

• the plan prohibits repricing of stock options or stock