Company: FSLY
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001140361-25-015174
Chunk: 43

Company: Fastly, Inc.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 43
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 and time-based RSUs resulted in a majority of the target total direct compensation for our Named Executive Officers delivered in variable pay, subject to variability in realized pay based on changes in our financial performance and/or stockholder returns, as illustrated below.

Preview of Changes for Fiscal 2025 During 2024 and in early 2025 with support from its independent consultants, the Compensation Committee undertook a comprehensive review of our approach to executive compensation after engaging with stockholders as described above under “2024 “Say-on-Pay” Advisory Stockholder Vote on Executive Compensation & Stockholder Engagement”. In addition to stockholder feedback, this review incorporated market perspective from our peer group as well as consideration given to our compensation objectives and desired emphasis on variable compensation to support our pay-for-performance culture. Following this review, the Compensation Committee approved changes to the compensation program for our Named Executive Officers applicable in fiscal 2025. Key changes include (a) introducing a new PSU component (“rTSR PSUs”) based on relative total stockholder return compared to the Russell 2000 Index and (b) adjusting the mix of LTI to enhance the performance orientation for non-CEO Named Executive Officers to 40% of their LTI (up from 30%) and ensuring our CEO remains at 50% performance-based LTI. For 2025, our CEO’s equity award consisted of 15% rTSR PSUs measured over three years, 35% PSUs based on revenue and non-GAAP operating loss targets measured over one year, and 50% time-based RSUs. The award for our non-CEO Named Executive Officers consisted of 15% rTSR PSUs measured over three years, 25% PSUs based on revenue and non-GAAP operating loss measured over one year, and 60% time-based RSUs. We believe that this combination of a new longer-term rTSR PSU vehicle and enhanced non-CEO Named Executive Officer mix reinforces our pay-for-performance philosophy while balancing against the current market dynamics in setting longer-term performance goals. The percentage of performance-based LTI is based on the intended target value of the PSUs granted.

2025 PROXY STATEMENT | 33

TABLE OF CONTENTS

Compensation Decision-Making Process Determination of Compensation Awards

The Compensation Committee’s goal is generally to target elements of compensation within a competitive range, using a balanced approach that does not use rigid percentiles to determine target pay levels for each compensation element. For 2024, the Compensation Committee reviewed each element of