Company: RGNX
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0000950170-25-052069
Chunk: 73

Company: REGENXBIO Inc.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 73
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 substantial number of unexercised options that are currently significantly underwater, represents the maximum potential dilution to existing stockholders based on our awards currently outstanding. We expect the eventual actual dilution to stockholders from these outstanding awards is likely to be substantially lower than this maximum potential dilution due to the extent to which a substantial number of unexercised options are underwater. For example, 4.8 million of options outstanding as of April 1, 2025 have an exercise price of above $30.00 per share. As a result, we expect to see significant expirations, or forfeitures, of options unless there is a significant near-term increase in share price.

If the 2025 Plan is approved by stockholders, the 5,500,000 shares authorized under the 2025 Plan, plus awards currently outstanding and shares remaining available for future awards under the 2015 Plan prior to its expiration, would amount to approximately 28.5% of our fully diluted shares outstanding as of April 1, 2025.

Equity Awards Are an Important Part of Our Compensation Philosophy

Like the 2015 Plan, the purpose of the 2025 Plan is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging employees, directors and consultants (referred to collectively as “service providers”) to focus on the achievement of our critical long-range corporate objectives, (b) encouraging the attraction and retention of service providers with exceptional qualifications, (c) linking the interests of service providers with our stockholders through increased stock ownership and (d) permitting the Company to offer competitive compensation packages while preserving cash to advance the Company’s clinical programs. The Company relies significantly on equity incentives in the form of equity grants in order to attract and retain key employees, and it believes that equity incentives are necessary for it to remain competitive in the marketplace for executive talent and other key employees. Option grants made to newly-hired or continuing employees will be based on both competitive market conditions and individual performance.

If stockholders do not approve the 2025 Plan, we would have fewer than 900,000 shares to issue to employees and directors based on the number of shares remaining available for future grants as of the Record Date. As equity compensation is a significant component of our compensation packages, we expect that the expiration of the 2015 Plan without a stockholder-approved replacement plan would negatively affect both our ability to attract and retain employees, executives and directors and employee morale, particularly after the expiration