Company: LPSN
Filing Date: 2025-05-22
Form Type: DEF 14A
Source: 0001102993-25-000068
Chunk: 75

Company: LIVEPERSON INC
Filing Date: 2025-05-22
Form: DEF 14A
Chunk 75
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 part of annual compensation packages, which, in turn, could result in the loss of important institutional knowledge and operational continuity that are key to executing on our overall strategic growth.

If we are limited in our ability to grant desired equity awards to our employees and other eligible individuals, we may not be able to compete for or retain key talent, and we may have to increase cash-based compensation incentives, which could work against our current philosophy of aligning the interests of our key personnel with the interests of our stockholders. If we needed to increase our use of cash-based compensation to compete for and retain key talent, this could also materially impact performance across the Company’s financial and operational metrics. This course of action could also be a distraction for our management team and employees because it would disrupt the typically scheduled operations of our compensation programs and restrict their ability to utilize equity grants to retain and motivate our employees.

For these reasons, we believe it is critical to approve the 2019 Stock Incentive Plan Amendment at this time to ensure we have a sufficient number of shares authorized for issuance under, and the continued use of, the 2019 Stock Incentive Plan as part of our compensation program in order to successfully deliver value to our stockholders.

#### Dividend Amendment
Currently, the 2019 Stock Incentive Plan provides that any dividend and dividend equivalent rights provided as part of a restricted stock or an RSU award may not allow for dividends to be paid currently, but rather all such dividends must be accrued and paid only when and if the underlying award vests. Approval of the Dividend Amendment will ensure that dividends on all other awards granted under the 2019 Stock Incentive Plan will similarly be paid only when and if the underlying award vests. We believe this is an important clarification to make to the 2019 Stock Incentive Plan at this time to further enhance the plan’s good governance features.

Historical Burn Rate, Proposed Share Reserve and Impact on Dilution

We recognize the dilutive impact of our equity compensation program on our stockholders and continuously strive to balance this concern with the competition for talent in the competitive business environment and talent market, as well as the current market conditions, in which we operate. In determining the appropriate number of shares of our common stock to add to the pool of shares available for issuance, our Board and the Compensation Committee worked with management and an independent compensation consultant to evaluate a number of factors, and carefully considered (i) the potential dilutive impact on stockholders, (ii) our historical burn rate and