Company: CRK
Filing Date: 2025-04-22
Form Type: DEF 14A
Source: 0000950170-25-056747
Chunk: 25

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-04-22
Form: DEF 14A
Chunk 25
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 dilutive effect of equity awards currently outstanding under the 2019 Plan, the Company’s historical equity usage, and the expected dilution of the 2019 Plan, to arrive at a reasonable and appropriate dilutive impact of the 2019 Plan. The Board recommends a vote in favor of the Amendment to the 2019 Plan because the Board believes the Amendment to the 2019 Plan is in the best interests of the Company and our stockholders for the following reasons: • Attracts and retains talent in a competitive landscape. Equity-based compensation has been a critical component of total compensation at the Company for many years because this type of compensation enables the Company to effectively recruit and retain executive officers and other employees while encouraging them to act and think like owners of the Company. We operate in a competitive talent landscape and amongst an industry of oil and natural gas companies where equity-based compensation are expected and commonplace. If the Amendment is not approved, we will not be able to continue to offer competitive compensation packages to motivate and retain our executive officers, or attract new talent, which will put the Company at a competitive

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disadvantage and may deter us from accomplishing our future goals and have a negative impact on stockholders and the Company overall. • Supports our pay-for-performance philosophy. A significant portion of total compensation for our executive officers and other key employees is equity-based incentive compensation tied to the achievement of our stock price performance. We use incentive compensation to help reinforce desired business results and to motivate executives to make decisions to produce those results. If the Amendment is approved, it will continue to support our pay-for-performance philosophy. • Prudent equity usage. We are committed to using equity incentive awards prudently, within reasonable limits, and subject to performance and service-based vesting requirements. We grant what we believe is an appropriate amount of equity necessary to attract, reward and retain employees. Our three-year average burn rate, which we define as the number of shares subject to equity awards granted under the 2019 Plan in a fiscal year divided by the weighted average basic shares outstanding for that fiscal year, was 0.51% for fiscal years 2022 through 2024. • Reasonable total potential dilution. Our equity plan dilution rate as of April 7, 2025 was 1.34% based on dividing (1) the number of shares subject to awards outstanding plus the number of shares remaining available for grant under the 2019 Plan, by (2) the total number