Company: FEAV
Filing Date: 2025-01-24
Form Type: PRE 14A
Source: 0000950170-25-008828
Chunk: 30

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-24
Form: PRE 14A
Chunk 30
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 FY 2023, and FY 2024 was 476,666, 651,667, and 760,668, respectively. The number of PSUs, RSUs, and DSUs that were forfeited during FY 2022, FY 2023, and FY 2024 was zero, 161,857, and 303,385, respectively. |
| (2) | Gross burn rate is calculated as (A) the total number of stock-settled equity awards granted during the applicable year (with performance awards counted at “target” levels), divided (B) by the weighted average common shares outstanding for the applicable year.                                                                                                                                                                                 |

An additional metric that we use to measure the cumulative dilutive impact of our equity-based awards program is fully diluted overhang, which is the sum of (1) the number of shares subject to equity awards outstanding (assuming performance at the “target” performance level), but not exercised or settled and (2) the number of shares available to be granted under our equity compensation plans, divided by the sum of (A) the total common shares outstanding, (B) the number of shares subject to equity awards outstanding but not exercised or settled, and (C) the number of shares available to be granted under our equity compensation plans. Our approximate fully-diluted overhang as of January 23, 2025, was 11.2%. If the Amended Plan had been approved as of such date, our approximate potential overhang, on a fully-diluted basis, would increase by 13.6% to 24.7% and then would decline over time.

If approved by our stockholders, the Amended Plan would increase the aggregate number of shares available for grant by 14,000,000 shares of Common Stock.

If we exhaust the share reserve under the Incentive Plan without approval of the Amended Plan, we would lose an important element of our compensation program that is essential to attract, motivate and retain highly qualified talent, and that aligns the interests of our employees with our stockholders.

In light of the factors described above, the Board believes that the size of the share reserve proposed by the Amended Plan is reasonable and appropriate at this time.

To the extent we grant any awards between January 23, 2025 and the date of this Special Meeting, the available share reserve under the Amended Plan will be reduced from 18,801,833 shares (i.e., the remaining available reserve as of January