Company: TVRD
Filing Date: 2025-02-14
Form Type: S-4/A
Source: 0001104659-25-013053
Chunk: 644

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-02-14
Form: S-4/A
Chunk 644
---
, thereby, to align the interests of Cara’s executive officers with those of its stockholders. These equity awards are intended to further its success by ensuring that sustainable value creation is a key factor in its executive officers’ management of its business. The size and form of these equity awards is determined by the Compensation Committee in its discretion. As described below, in 2024, Cara granted equity awards in the form of performance-based stock options to its named executive officers as part of its long-term incentive compensation program. In prior years, the Compensation Committee also granted a portion of the annual equity awards in the form of service-based stock options, time-based RSUs and performance-based RSUs. However, in 2024, the Compensation Committee elected not to issue RSUs or service-based options, but rather to grant exclusively performance-based stock options in order to further incentivize Cara’s executive officers to focus on corporate performance objectives. Performance-based Stock Options. The Compensation Committee elected to use performance-based stock options covering shares of Cara’s common stock as long-term incentives because they reward Cara’s executive officers for the achievement of corporate objectives, which aligns the interests of management with Cara’s stockholders by rewarding them upon the Company’s achievement of value-creating milestones. Annual Equity Awards The annual equity grants to Cara’s named executive officers are evaluated and approved by the Compensation Committee in the context of each named executive officer’s total compensation and take into account the market data provided by compensation consultants in addition to the individual officer’s responsibilities and performance. The Compensation Committee also takes into account the recommendations of the Chief Executive Officer with respect to appropriate grants (other than for the Chief Executive Officer) and any particular individual circumstances. 2024 Stock Option Awards In March 2024, the Compensation Committee approved the following performance-based stock option grants to Cara’s named executive officers as part of its annual executive compensation review process, at a

369

TABLE OF CONTENTS

per share exercise price equal to the fair market value of a share of Cara’s common stock on the grant date. Each of the performance-based stock options were to vest upon Cara meeting certain specified development and regulatory milestones related to Cara’s clinical program in NP and financial milestones. In June 2024, Cara discontinued its clinical program in NP and announced it was streamlining its operating plan exploring strategic alternatives focused on maximizing shareholder value. Because the performance milestones of these stock options were not achieved, the options were forfeited.

| Named Executive Officer | ​ | ​ | Performance-basedStock OptionGrant (

# shares)(1) |