Company: VCYT
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001384101-25-000051
Chunk: 32

Company: VERACYTE, INC.
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 32
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 the number of shares remaining for grant under our 2023 Plan, in each case as of March 31, 2025.

|           | Outstanding appreciation awards (options) under all plans 
 (#)                                                       |     |           | Full value awards outstanding under all plans (including PSUs at target) 
 (#)                                                                      |     |           | Number of shares available for grant under all plans (2023 Plan only) 
 (#)                                                                   |
| 2,375,668 |                                                           |     | 3,767,140 |                                                                          |     | 8,076,382 |                                                                       |

Based on this information, as of March 31, 2025, our outstanding equity awards (not including awards under our ESPP) plus shares available for future grant under our 2023 Plan represented approximately 18% of our common stock outstanding, which we refer to as our “overhang.”

Accordingly, our Board of Directors believes that the request to approve the Plan Amendment to add an additional 2,500,000 shares of common stock to the 2023 Plan is reasonable and prudent. This number of shares should allow us to continue to grant awards to our employees, consultants, officers and directors, which have been successful in attracting high-performing personnel and generating stockholder value, going forward and to be able to respond to growth, market competition and potential stock price fluctuations, especially in today’s versatile market within our industry.

Good Governance and Compensation Practices

The 2023 Plan contains a number of provisions that we believe are consistent with the interests of our stockholders and good corporate governance and compensation practices, including:

#### •

#### No evergreen provision;
• No option repricing without stockholder approval;

#### •

#### No “liberal” change in control definition;
#### •

#### No dividends on unvested awards;
#### •

#### No excise tax gross ups;
• No automatic single trigger acceleration on a change in control;

#### •

#### Minimum exercise price;
• Limits on non-employee director cash and equity compensation; and

• The ability to claw back awards under our clawback policies and/or any recoupment requirements imposed under applicable law or listing standards.

Purpose of the Proposed Plan Amendment

The 2023 Plan enables us to offer equity awards to attract and retain talented employees, directors, consultants, independent contractors and advisors and further align their interests and those of our stockholders by continuing to link a portion of their compensation with our company performance. The Plan Amendment is intended to enable