Company: AX
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001299709-25-000174
Chunk: 62

Company: Axos Financial, Inc.
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 62
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 Amendment on the 2014 Plan
The following table highlights certain of the impacts of the Amendment on the 2014 Plan (the 2014 Plan, as amended by the Amendment, the “Amended Plan”):

The 2014 Plan allowed for 6,680,000 shares prior to amendment. Management recommended and the Compensation Committee recommended and the Board approved a share pool reserve increase of 1,000,000 common shares for future issuance under the Amended Plan for a total of 7,780,000 shares. In determining the number of shares to be reserved under the Amended Plan, management and the Compensation Committee reviewed our stock award history and our stock award activity relative to peers.

The Company’s most recent three-year average of gross and net shares awarded is 915,537 shares and 599,572 shares, respectively. The net shares awarded are net of shares retained by the Company and converted to cash to fund the grantee’s income tax obligations. A company’s new award shares as a percentage of outstanding shares on a fully diluted basis, or gross burn rate, is the gross number of equity award shares granted in a given year divided by the weighted average common shares outstanding on a fully diluted basis for the same year. Gross burn rate excludes the add-back of canceled or forfeited equity awards in the calculation. Net burn rate is a similar calculation to gross burn rate, but excludes shares retained by the Company and converted to cash to fund the grantee’s income tax obligations. The Company’s three-year average outstanding shares on a fully diluted basis was 59,177,970. The Company’s gross burn rate is 1.55% and net burn rate is 1.01%.

The Company’s outstanding awards as of September 1, 2025 were 1,535,616 and 1,206,551 common shares remained available for issuance under the 2014 Plan (assuming that all outstanding awards are ultimately settled for their full number of shares and are not forfeited or modified). By adding 1,000,000 shares to the 2014 Plan, a total of 2,206,551 shares would be available for issuance under the Amended Plan and, assuming the gross burn rate was maintained at the three-year average of 915,537 shares, the total of 2,206,551 shares would support approximately two to three additional years of awards.

To understand our stock award activity relative to peers, the Company reviewed peer data and specifically compared its stock award activity to two Institutional Share