Company: CRVO
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001437749-25-013543
Chunk: 59

Company: CervoMed Inc.
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 59
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 of our directors, executive officers and other employees with the interests of our stockholders through equity participation in our Company. |

| ● | Attracts and Retains Talent.  Talented, motivated and effective directors, executives and employees are essential to executing our business strategies.  We believe equity-based compensation is an important component of total compensation at our Company because such compensation enables us to effectively recruit executives and other employees while encouraging them to act and think like owners of our Company.  Equity-based compensation is especially important for smaller public companies, such as us, when our equity-based compensation arrangements can assist us in competing for talent against other companies that may offer better and more lucrative cash and other compensation packages.  If the 2025 Plan is approved, we believe we will be better able to offer competitive compensation packages to both retain our best performers and attract new talent. |

| ● | Supports our Compensation Philosophy.  We believe that equity-based compensation, by its very nature, is performance-based compensation.  To align the interests of our executive officers with the interests of our stockholders, we intend that a significant part of the total compensation to be paid to our executive officers will be performance-based.  We intend to use equity-based incentive compensation to help reinforce desired financial and other business results for our executives and to motivate them to make decisions to produce those results.  Therefore, approval of the 2025 Plan is important to support our pay-for-performance philosophy. |

| ● | Balances Appropriately our Need to Attract and Retain Talent with Stockholder Interests Regarding Dilution.  We recognize the dilutive impact of our equity-based compensation programs on our stockholders and we intend to strive to balance this concern with competitive compensation practices and the need to attract and retain talent.  As described in more detail below under the heading “—Background for Shares Authorized for Issuance under the 2025 Plan,” we believe the 2025 Plan is not excessively dilutive to our stockholders. |

| ● | Protects Stockholder Interests and Embraces Sound Equity-Based Compensation Practices.  As described in more detail below under the heading “—Summary of Sound Governance Features of the 2025 Plan,” the 2025 Plan includes a number of features that are consistent with the interests of our stockholders and sound corporate governance practices. |

Summary of Sound Governance Features of the 2025 Plan

The Board and Compensation Committee believe that the 2025 Plan contains several features that are consistent with the interests of our stockholders and sound corporate