Company: CYTK
Filing Date: 2025-03-31
Form Type: PRE 14A
Source: 0001140361-25-011212
Chunk: 67

Company: CYTOKINETICS INC
Filing Date: 2025-03-31
Form: PRE 14A
Chunk 67
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 pay equity among our named executive officers, to reflect the importance of each named executive officer’s responsibilities to our success as compared to our other named executive officers. |

As a result of the significant increase in our stock price following our announcement of the results of the SEQUOIA-HCM clinical trial of aficamten in late December 2023, in January 2024, the Compensation Committee changed its practice of granting a fixed number of stock options or RSUs to our named executive officers to the granting of equity awards based on target monetary value approach. In 2024, the Compensation Committee determined the quantum of equity awards to our named executive officers by first, after consultation with our independent compensation consultant, establishing a monetary value of the target equity awards,

| Cytokinetics, Inc.|2025 Proxy Statement |     | 45 |

TABLE OF CONTENTS Executive Compensation

including high and low range values based on individual performance, and subsequently determined individual grants within that range. On the grant date, the Company converted the monetary value of the equity award into units of RSUs, PSUs or stock options based on the closing stock price of the Company's stock on the Nasdaq exchange on the date of the grant. For stock options, the Company determines the number of stock options using a Black Scholes valuation methodology. For 2024, the Compensation Committee decided to grant an annual grant to our named executive officers after establishing the aggregate individual equity award value based on a ratio of 40% RSUs, 30% PSUs and 30% stock options. Broad-based employee benefits with limited perquisites. Our named executive officers are eligible to participate in our employee benefit plans, including medical, dental, life insurance, employee stock purchase and 401(k) plans. These benefits are available on the same terms and conditions as to our other employees. Our named executive officers do not receive any perquisites other than those provided to all employees. Severance Benefits and Employment Agreements. We have (or had, as applicable) executive employment agreements with each of our named executive officers that provide (or provided, as applicable) for salary and benefit continuation, bonus payments and accelerated vesting of equity awards upon the termination of their employment either by us without cause, or by the executive for good reason following a loss of position in connection with a change of control of the Company. The terms of these agreements are described in the section below entitled “Potential Payments Upon Termination or Change of Control.” The Compensation Committee believes these agreements are an essential element of our