Company: ARWR
Filing Date: 2025-01-29
Form Type: DEF 14A
Source: 0001628280-25-002848
Chunk: 33

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-01-29
Form: DEF 14A
Chunk 33
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 ultimately, realized) from such awards in subsequent years, and our total stockholder return over this period.

| 31 |

2025 PROXY STATEMENT Executive Compensation Policies and Practices We endeavor to maintain sound governance standards consistent with our executive compensation policies and practices. The Compensation Committee evaluates our executive compensation program on a regular basis to ensure that it is consistent with our short-term and long-term goals given the dynamic nature of our business and the market in which we compete for executive talent. The following summarizes our executive compensation and related policies and practices:

| WHAT WE DO                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |     | WHAT WE DON’T DO                                                                                                                                                                                                                                                                                                |
| ✓Maintain an Independent Compensation Committee.The Compensation Committee consists solely of independent directors.                                                                                                                                                                                                                                                                                                                                                        
 ✓Retain an Independent Compensation Advisor.The Compensation Committee engaged its own compensation advisor to provide information and analysis with its fiscal 2024 compensation review, and other advice on executive compensation independent of management. This consultant performed no consulting or other services for us in fiscal 2024.                                                                                                                            
 ✓Annual Executive Compensation Review.The Compensation Committee conducts an annual review and approval of our compensation strategy, including a review and determination of our compensation peer group and a review of our compensation-related risk profile to ensure that our compensation programs do not encourage excessive or inappropriate risk-taking.                                                                                                           
 ✓Compensation At-Risk.Our executive compensation program is designed so that a significant portion of compensation is “at risk” based on our performance, as well as short-term cash and long-term equity incentives to align the interests of our executive officers and stockholders.                                                                                                                                                                                     
 ✓CEO Annual Incentive Compensation Cap.Our CEO’s annual cash incentive compensation opportunity is capped at 150% of his base salary.                                                                                                                                                                                                                                                                                                                                       
 ✓Stock Ownership Policy.We maintain a stock ownership policy that requires our CEO and CFO to maintain a minimum ownership level of our common stock.                                                                                                                                                                                                                                                                                                                       
 ✓Compensation Recovery (“Clawback”) Policy.We maintain a clawback policy to allow Arrowhead to recover incentive compensation from our executive officers, on a non-fault basis, in the event a financial restatement is required to correct any accounting errors made by any such executive officer.                                                                                                                                                                      
 ✓Conduct an Annual Stockholder Advisory Vote on NEO Compensation.We conduct an annual stockholder advisory vote on the compensation of our NEOs.                                                                                                                                                                                                                                                                                                                            
 ✓Use a Pay-for-Performance Philosophy.The majority of our CEO’s compensation is directly linked to achievement of milestones to the benefit of all stakeholders; we also structure target total direct compensation opportunities with a significant