Company: PHR
Filing Date: 2025-05-14
Form Type: DEF 14A
Source: 0001412408-25-000027
Chunk: 56

Company: Phreesia, Inc.
Filing Date: 2025-05-14
Form: DEF 14A
Chunk 56
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 management. These goals were set to be achievable through diligent effort, and to reward strong management performance in light of our strategic objectives, industry and economic conditions, and financial trends at the time the target levels were set. Our performance measures are defined as follows:

Revenue means GAAP revenue reported in our statements of operations.

Adjusted EBITDA means net income or loss before interest income, net, provision for (benefit from) income taxes, depreciation and amortization, and before stock-based compensation expense, loss on extinguishment of debt and other (income) expense, net.

The target performance levels required for 100% achievement for the corporate performance measures under our Senior Executive Cash Incentive Bonus Plan for the first half of fiscal 2025 were $203 million for revenue and negative $1.51 million for Adjusted EBITDA. The target levels required for 100% achievement for the corporate performance measures under our Senior Executive Cash Incentive Bonus Plan for full fiscal 2025 were $417 million for revenue and $28.50 million for Adjusted EBITDA. Our NEOs were eligible for annual incentive compensation payouts based on revenue for first half and full fiscal 2025 only if we met or exceeded 96.7% of the revenue goal, and they were eligible for annual

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incentive compensation payouts based on Adjusted EBITDA for full fiscal 2025 only if we met or exceeded 50% of the Adjusted EBITDA goal. The compensation committee set a high threshold between 96.7% to 102.2% for revenue to ensure that incentive payments would only follow significant achievement. Revenue achievement of 102.2% of the revenue goal and 133.3% of the Adjusted EBITDA goal each result in a maximum payout of 150%. Total payouts were capped for each measure at 150% of the target annual cash incentive opportunity to manage potential incentive compensation costs and balance our focus on short-term performance and long-term performance by avoiding an over-emphasis on our short-term rewards.

In August 2021, we began a program to conserve the Company's cash by allowing all employees that participate in the Senior Executive Cash Incentive Plan, including our NEOs, to choose to be paid 0%, 50% or 100% of their earned cash incentive bonus in the form of fully-vested RSUs. The number of RSUs is determined using the closing price of our shares on the NYSE on