Company: ARWR
Filing Date: 2025-10-10
Form Type: 10-K/A
Source: 0000879407-25-000013
Chunk: 23

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-10-10
Form: 10-K/A
Chunk 23
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No Dividends or Dividend Equivalents Payable on Unvested Equity Awards.We do not pay dividends or dividend equivalents on unvested RSU awards or PRSU awards.                                                                                                                                                  
 ✘No Stock Option Re-pricing.Our employee stock plan does not permit options to purchase shares of our common stock to be repriced to a lower exercise or strike price without the approval of our stockholders.                                                                                                 |

#### Executive Compensation Philosophy
Our executive compensation philosophy reflects our two fundamental objectives:

• to attract, motivate and retain a highly skilled team of executives; and

• to align our executive officers’ interests with those of our stockholders by rewarding short-term and long-term performance and aligning compensation to increases in stockholder value.

We believe that the compensation of our executive officers should be directly linked to the achievement of specific objectives that are expected to increase stockholder value. In furtherance of this goal, the Compensation Committee has established the following guidelines as a foundation for compensation decisions:

• provide a competitive total compensation package that enables us to attract, retain and motivate highly-qualified executives with the skills and experience required for the achievement of business goals;

• promote the achievement of key strategic and financial performance measures by linking short-term and long-term compensation to the achievement of measurable goals;

• reward significant achievements outside of pre-established goals;

• recognize that pharmaceutical research, development and commercialization require sustained and focused effort over many years, and involve a high degree of risk and therefore balance incentives for short-term and long-term compensation;

• employ external compensation expertise and market data from industry peers to help assure that our compensation policies and practices are consistent with industry practice and meet our goals for our compensation program;

• consider our cash resources and cost of capital to balance cash and equity compensation; and

• align our executives’ incentives with the creation of stockholder value.

#### Executive Compensation Program Design
Our practice is to combine a mixture of compensation elements that balance achievement of our short-term goals with our longer-term performance. Currently, our executive compensation program consists of three principal elements:

• base salary;

• an annual cash incentive compensation opportunity; and

• long-term incentive compensation in the form of equity awards.

We believe that cash compensation in the form of base salary and an annual incentive compensation opportunity provides our executive officers with short-term rewards for success in operations, and that long-term incentive compensation in the form of RSU and PRSU awards that may be settled for shares of our common stock, and options to purchase shares of our common stock, align the objectives of our