Company: ISRG
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001035267-25-000098
Chunk: 102

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 102
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The vesting or acceleration of equity awards upon specified events is intended to secure the executives’ continued services in the event of a change in control, a purpose that further aligns the executives’ interests with

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those of our stockholders when evaluating any such potential transaction. The proposal would impose significant limits on our use of severance protections to retain senior executives during a potential change in control and potentially impair our ability to deliver maximum stockholder value in such a transaction. The risk of job loss following a change in control, coupled with a limitation on the value that may be realized from previously granted equity awards, could present an unnecessary distraction for our senior executives and could lead them to seek the certainty of new employment while a transaction is being contemplated, negotiated, or is pending. This could result in a risk of the transaction not being completed or being finalized with less favorable terms for stockholders.

By effectively eliminating an important retention tool by requiring stockholder approval of termination payments, including the value of accelerated vesting of long-term equity awards, the proposal could result in a weakened alignment between the interests of our executives and those of our stockholders in a change-in-control transaction and create increased risk to our stockholders. It could also have an adverse impact on our ability to retain executive talent, as it would put us at a competitive disadvantage against other companies that do not face similar restrictions or uncertainty regarding their ability to offer termination protection.

Stockholders already have opportunities to express their views on our post-termination compensation policies through our annual Say-on-Pay votes and ongoing stockholder outreach.

The Board and the Company value the opinions of our stockholders and remain committed to engaging with our investors in ongoing, constructive dialogue around executive compensation and other important corporate governance matters. For example, for several years, the Company has maintained an engagement program that includes participation from members of our Compensation Committee. This program specifically seeks to identify potential compensation program changes that are directly responsive to stockholder feedback and further align our programs with stockholder expectations. Our annual Say-on-Pay vote, coupled with our year-round, routine investor outreach, provides opportunities for stockholders to share their feedback on our executive compensation program. In the course of these engagements, our post-termination compensation policies have not been identified by stockholders as a significant area of concern.

Stockholders have continued to show strong support for our executive compensation program through the annual Say-on-Pay vote, with over 93% of the votes in favor of our 2024 proposal and, similarly, an average approval of over 92