Company: PTC
Filing Date: 2025-12-23
Form Type: DEF 14A
Source: 0001104659-25-124170
Chunk: 38

Company: PTC INC.
Filing Date: 2025-12-23
Form: DEF 14A
Chunk 38
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 are reasonable considering past performance and market conditions. We use different performance measures for our annual incentive plans and our long-term incentive plans. Our executives’ long-term equity awards are split 50/50, and our CEO’s 40/60, between time-based and performance- based long-term equity to balance the risk associated with performance-based equity with retention provided by time-based equity. We use RSUs rather than stock options for equity awards because RSUs retain value even if the stock price declines so that employees are less likely to take unreasonable risks to get, or keep, options “in-the- money”. We generally use time-based vesting over three years for our long-term equity awards to ensure our employees’ interests are aligned with those of our shareholders in the long-term performance of PTC. Payouts under our performance-based plans result in some compensation after achievement of the performance threshold at levels below full target achievement, rather than an “all-or-nothing” approach. Upside earning opportunity in our annual cash compensation plans and our performance-based equity is capped. All functions have a component of their leadership incentive plans tied to overall PTC performance to ensure cross-functional alignment with PTC’s business plan. Our executive stock ownership policy requires our executives to hold a substantial amount of stock (options and unvested equity do not count), which aligns an appropriate portion of their personal wealth to the long-term performance of PTC. Our compensation clawback policy enables us to recover incentive compensation paid to an executive officer if it is later determined not to have been earned due to restatement of prior period financial or operating results, thus reducing any incentive to engage in misconduct to meet the targets. We maintain effective controls and procedures to ensure that amounts are earned and paid in accordance with our plans and programs.

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TABLE OF CONTENTS

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| 2025Highlights | ​ | ​ | ProxySummary | ​ | ​ | CorporateGovernance | ​ | ​ | ExecutiveCompensation | ​ | ​ | AuditorMatters | ​ | ​ | PTC StockOwnership | ​ | ​ | Annual MeetingInformation |