Company: AX
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001299709-25-000174
Chunk: 34

Company: Axos Financial, Inc.
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 34
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2025 Company’s Total Return to Stockholders           |     |                      33% |
| Fiscal Year 2025 XABQ Index Return                                |     |                      21% |
| Beginning Stock Price(1)                                          |     |                   $53.36 |
| Fiscal Year 2025 Equity Award (Shares)                            
 $3,500,000 × 0.95 + 2% (33% - 21%) × $3,035,893,988 = $10,341,723 
 $10,341,723 ÷ $53.36                                              
 193,811Shares (to vest over 4 years)                              |     |                          |

(1) Per the Agreement, the beginning Stock Price is calculated as the average daily stock price for the June 2024.

Impact of One-Year Renewal of Agreement on CEO RSU Award Grant Date

Effective each January 1st following the initial five-year team, the Agreement was automatically renewed for a one-year term since no notice of non-renewal was provided by either the Company or CEO. The RSU or other long-term equity incentive award the Company became obligated to grant the CEO in connection with the renewal occurring during fiscal year 2025 will not be granted to the CEO until September 2026, if at all. This award is contingent on the CEO remaining employed by the Company until September 2026 and is subject to other requirements for vesting of the grants under the Agreement. The grant to be issued in conjunction with each one year renewal is treated for accounting purposes as if the RSU award was granted on January 1 of each automatic renewal year. Specifically, in accordance with ASC 718, an estimate of the RSU awards was made on January 1 of the each respective year using Monte Carlo simulation to generate estimated future prices of the Company’s stock, estimated future Company TRS and estimated future total returns on the XABQ index. With these outputs, the Company estimated the future number of RSUs and values. For accounting purposes, the Company charges the value across the future vesting periods using a grading method to determine grant-date expense attributable to future years. The Company graded or spread the award expense as required under ASC 718 across the service period and the four-year vesting periods. The estimated fair values for the awards associated with the renewals occurring during fiscal years 2025, 2024 and 2023 were $8.9 million, $9.4 million and $5.2 million,