Company: SNPS
Filing Date: 2025-02-14
Form Type: DEF 14A
Source: 0000883241-25-000008
Chunk: 89

Company: SYNOPSYS INC
Filing Date: 2025-02-14
Form: DEF 14A
Chunk 89
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 risk:

| RISK ASSESSMENT FACTOR                                           |     | RISK MITIGATION APPROACH                                                                                                                                                                                                                      |
| Revenue model and cash incentive plan                            |     | Encourage our employees to focus on creating a stable, predictable stream of revenue over multiple years, rather than focusing on current year revenue at the expense of succeeding years.                                                    |
| Allocation of compensation                                       |     | Effectively balances short-term performance and long-term performance.                                                                                                                                                                        |
| Cash and equity incentive awards                                 |     | Focus on both near-term and long-term goals and, in the case of equity incentive awards, provide for compensation over a multi-year period, to encourage our employees to remain focused on our performance beyond the immediate fiscal year. |
| Performance goals for our cash and equity incentive awards       |     | Use a variety of performance metrics, which diversifies the risk associated with any one metric or aspect of performance.                                                                                                                     |
| Cash and equity incentive awards                                 |     | Contain a range of performance levels and payouts to discourage employees from taking risky actions to meet a single target with an all-or-nothing result of compensation or no compensation.                                                 |
| Executive Incentive Plan                                         |     | Caps cash incentive payments at a maximum award size and also includes a threshold for funding affordability. In addition, the Compensation Committee retains discretion to adjust our employees’ incentive payments under the plan.          |
| Cash incentive payments and equity awards for Executive Officers |     | Subject to a compensation recovery policy to recover incentive compensation paid to Executive Officers in the event of a financial restatement.                                                                                               |

Based upon this assessment, our Compensation Committee believes that our company-wide compensation policies and practices are reasonable and encourage appropriate behaviors without creating risks that are reasonably likely to have a material adverse effect on us.

Compensation Committee Interlocks and Insider Participation

During fiscal 2024, John G. Schwarz, Marc N. Casper, Janice D. Chaffin, and Bruce R. Chizen served on the Compensation Committee. Mr. Casper was not renominated for election to the Board of Directors and his term will expire at the conclusion of the Annual Meeting. Effective upon the conclusion of the Annual Meeting, Mr. Schwarz will no longer serve as the Compensation Committee chair, although he will remain a member of the Compensation Committee. Effective upon the conclusion of the Annual Meeting, Robert G. Painter will serve as the Compensation Committee chair. None of the members of the Compensation Committee is, nor was during fiscal 2024, an officer or employee of Syn