Company: SNPS
Filing Date: 2025-02-14
Form Type: DEF 14A
Source: 0000883241-25-000008
Chunk: 81

Company: SYNOPSYS INC
Filing Date: 2025-02-14
Form: DEF 14A
Chunk 81
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 basis to remain competitive with our peer companies and because the tax benefit it offers comes at a relatively low cost to us. The program is currently administered through a non-qualified deferred compensation plan. Under this plan, participants may elect to defer up to 50% of their salaries and up to 100% of their cash incentive compensation. |

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| PROPOSAL 4 — Advisory Vote to Approve Executive Compensation |

Severance and Change of Control Benefits

| NAME OF PLAN                                                             |     | MATERIAL FEATURES                                                                                                                                                                                                                                                            |     | RATIONALE                                                                                                                                                                                                                                                                                                                      |
| Executive Change of Control Severance Benefit Plan                       
 (Covers all NEOs except for Chief Executive Officer and Executive Chair) |     | •“Double trigger” provisions, comparable to benefits offered by members of our peer group                                                                                                                                                                                    
 •A departing executive officer must sign a separation and release agreement acceptable to us as a condition to receiving post-employment compensation payments or benefits.                                                                                                  |     | •The Compensation Committee believes that these severance protection benefits are necessary to provide stability among our executive officers, serve to focus our executive officers on our business operations, and avoid distractions in connection with a potential change in control transaction or period of uncertainty. 
 •“Double trigger” provisions preserve morale and productivity, encourage executive retention to maintain the stability of our business during a change of control, and protect executives in the event of job loss.                                                                                                            
 •Offering benefits comparable to benefits offered by members of our peer group helps us attract talented executives and maintain a consistent management team.                                                                                                                                                                 |
| Executive Severance Benefit and Transition Plan                          
 (Covers all NEOs except for Chief Executive Officer and Executive Chair) |     | •Limited cash severance and equity acceleration benefits, comparable to benefits offered by members of our peer group.                                                                                                                                                       
 •A departing executive officer must sign a separation and release agreement acceptable to us and comply with certain non-compete, non-solicitation and non-disparagement provisions as a condition to receiving post-employment compensation payments or benefits.           
 •Further, an executive officer may be required to serve as a part-time employee in a pre-defined role for up to 9 months (at a greater than 50% rate with proportionately reduced base salary) at the sole discretion and request of Synopsys to ensure a smooth transition. |     | •Offering benefits comparable to benefits offered by members of our peer group helps us attract talented executives and maintain a consistent management team.                                                                                                                                                                 |
| Chief Executive Officer Employment Agreement