Company: ZM
Filing Date: 2025-05-01
Form Type: DEF 14A
Source: 0001140361-25-016910
Chunk: 38

Company: Zoom Communications, Inc.
Filing Date: 2025-05-01
Form: DEF 14A
Chunk 38
---
 equity compensation program. In this proxy statement, we have continued to include expanded disclosure regarding our equity compensation program and how we believe it, along with our cash incentive program, aligns pay with company performance.                                                                                                                                                                                                                                                                                               |
| Stockholders expressed concerns regarding our supplemental grant program and four-year “refresh” grants.                                            |     | We sunsetted our supplemental grant program such that no employees (including NEOs) receive supplemental grants after January 2024. The Compensation Committee will continue to evaluate our equity compensation program, including our four-year “refresh” grants.                                                                                                                                                                                                                                                                                                         |
| Stockholders requested that we consider granting performance-vesting equity awards.                                                                 |     | For fiscal 2025, we introduced performance-vesting RSUs to replace our annual RSU bonus awards. Performance-vesting RSUs were only eligible to vest (with a cap of 100% of target) based upon achievement of two rigorous financial performance metrics. We continued to grant performance-vesting RSUs to our NEOs in fiscal 2026 (other than to our newly hired NEO, Ms. Chang).                                                                                                                                                                                          |
| Stockholders expressed concern regarding our equity compensation dilution and requested that we consider a more market standard cash bonus program. |     | We are shifting our executive compensation practices to increase performance cash bonus opportunities and decrease annual equity compensation grants over the next two years. In fiscal 2025, we determined Ms. Chang’s new hire compensation package with this intended shift in mind. In fiscal 2026, we granted performance-vesting equity awards with target grant date values equal to half of the target values applicable to the fiscal 2025 performance-vesting equity awards. We will continue to evaluate the amount and form of our equity compensation program. |

25

TABLE OF CONTENTS

Our Compensation Committee will monitor and continually evaluate our compensation program going forward in light of our stockholders’ views and our transforming business needs and expects to continue to consider the outcome of our say-on-pay votes and our stockholders’ views when making future compensation decisions for our named executive officers. Compensation Objectives and Philosophy Zoom’s compensation philosophy is to employ market-competitive compensation programs and relevant total rewards offerings that reflect Zoom’s culture and values in order to deliver happiness to its employees and recognize their value to our organization. Our executive compensation program aims to achieve the following main objectives:

| • | attract, retain, and reward top talent; |

| • | provide incentives that motivate and reward for achievement of our key performance goals that increase stockholder value