Company: PGEN
Filing Date: 2025-05-06
Form Type: PRE 14A
Source: 0001140361-25-017535
Chunk: 84

Company: PRECIGEN, INC.
Filing Date: 2025-05-06
Form: PRE 14A
Chunk 84
---
2023 Plan to increase the number of shares of common stock available for issuance thereunder by 11,500,000 shares, supports our ability to attract, motivate, and retain the most competent and skilled officers, employees, non-employee directors, and other service providers, which is a significant factor for our long-term success. Awards made under the 2023 Plan are designed to align the individual interests of our officers, employees, non-employee directors, and other service providers with the interests of our shareholders and reward them for the creation of long-term shareholder value. As of March 31, 2025, there were 7,510,697 shares remaining available for issuance under the 2023 Plan, representing 2.5% of our outstanding common stock as of that date. Additionally, in April 2025, as discussed within the Compensation Discussion and Analysis section of this Proxy Statement, the Compensation Committee approved the annual short-term incentive bonuses to be paid 100% in RSUs, pursuant to which 1.6 million shares were issued in April 2025, which RSUs are scheduled to vest in May 2025. We believe that the number of shares remaining available for issuance under the 2023 Plan may not be sufficient in view of our compensation structure and strategy and that the availability of the additional shares sought in this proposal will help us to continue to have a sufficient number of shares of common stock available for awards under the 2023 Plan. As a result, the Compensation Committee and the Board have approved the 2023 Plan Amendment No. 2, subject to the approval of our shareholders at the Annual Meeting. The 11,500,000 shares requested for issuance under the 2023 Plan represents an incremental dilution of approximately 4.0% of the shares of common stock outstanding on a fully-diluted basis as of March 31, 2025, and is intended to provide us with sufficient shares for grants to be made over at least the next 12 months (or perhaps longer). The Board believes the number of shares underlying the Plan represents a reasonable amount of potential additional equity dilution, and is committed to effectively managing our share reserves for equity compensation while minimizing stockholder dilution. In making the recommendation to increase the 2023 Plan’s share reserve by an additional 11,500,000 shares, we considered a number of factors, including: Importance of Long-Term Equity Incentives . Long-term equity incentives are an important component of our executive compensation program, motivating