Company: STGW
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001104659-25-039437
Chunk: 28

Company: Stagwell Inc
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 28
---
 Company’s issued and outstanding Shares. Based on our historical practices, the Board believes that the additional Shares available for grant under the Third Amended and Restated 2016 Incentive Plan will be sufficient to cover awards for at least the next three years, depending on circumstances such as significant market value fluctuations, vesting levels of performance-based restricted stock or restricted stock unit awards, or acquisitions. The Board believes that the Shares to be added by this amendment are necessary to meet the Company’s anticipated equity compensation needs. The Company has been increasingly using equity compensation instead of cash compensation, including for non-executive employees, with over 1,800 employees receiving equity grants in 2024. If stockholders do not approve this proposal, the Company will not be able to continue to grant new equity awards, which can hinder its ability to attract and retain top talent and the Company’s overall compensation strategy could be affected, potentially leading to a heavier reliance on cash that is reserved for other purposes. As of April 14, 2025, the closing price of a Share was $5.28. 2. Limiting Exceptions to Minimum Vesting Period . The Current Plan provides that no Incentive Award can vest or otherwise become payable prior to the first annual anniversary of the grant, unless a “Permitted Acceleration Event” (as defined in the Current Plan) 19 TABLE OF CONTENTS occurs (the “One Year Requirement”), subject to certain exceptions, including for Incentive Awards granted to the Company’s directors with a vesting period that runs from the Company’s annual meeting of stockholders to the next annual meeting of the Company’s stockholders. The Board recommends, subject to stockholder approval, that the Current Plan be amended so that such director awards may not have a vesting period shorter than 50 weeks, even if the meetings are fewer than 50 weeks apart, and to eliminate a Permitted Acceleration Event tied to performance-based awards. 3. Termination Date of the Third Amended and Restated 2016 Incentive Plan . The Current Plan is set to terminate on March 7, 2032, with no new grants of Incentive Awards allowed after that date. The Board recommends, subject to stockholder approval, that the term of the Current Plan be extended so that the Third Amended and Restated 2016 Incentive Plan will terminate on April 23, 2035, with no new grants of Incentive Awards allowed after that date. 4. Other Administrative