Company: CYTK
Filing Date: 2025-04-10
Form Type: DEF 14A
Source: 0001140361-25-013167
Chunk: 10

Company: CYTOKINETICS INC
Filing Date: 2025-04-10
Form: DEF 14A
Chunk 10
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 Peer Companies (as defined in the Compensation Discussion and Analysis section of this Proxy Statement). For our Peer Companies, the median and 75th percentile ranges between 16.5% and 22.4% of common shares outstanding as of FYE. For the past three years (2022 through 2024), we have annually granted an average of 3.7% of shares of Common Stock then issued and outstanding, which is positioned modestly above the median share usage of our Peer Companies of 3.3%. The Board of Directors believes that our ability to issue awards to our employees under the 2004 EIP at a level that is competitive with our Peer Companies is critical to our ability to succeed. If this Proposal Two is approved, we believe the additional 5,000,000 shares of Common Stock will enable us to issue awards to our employees for at least an additional two years. In addition to the aforementioned increase in the number of authorized shares of Common Stock reserved for issuance, the Board of Directors believes that it is in the best interests of stockholders to adopt provisions in the 2004 EIP to limit the value of equity awards that may be granted to non-employee directors from time to time. In May 2025 the Board of Directors, upon the advice and recommendation of the Compensation and Talent Committee of our Board of Directors (the “Compensation Committee”), approved a policy (the “Non-Employee Director Equity Compensation Policy”) for the granting to new directors upon their joining our Board of Directors an initial one-time on-boarding grant (the “On-Boarding Grant”) in the form of stock options to purchase shares of Common Stock with a grant date fair value of $700,000 based on the closing stock price of our shares of Common Stock on the Nasdaq exchange on the date of the new director’s first joining our Board of Directors. In addition, our Board of Directors, again upon advice and recommendation of the Compensation Committee, approved the granting to all continuing directors on the date of our annual meeting of stockholders in any given calendar year, an annual grant (the “Annual Grant”) comprised of restricted stock units and stock options to purchase shares of Common Stock with an aggregate grant date fair value of $400,000 based on the closing stock price on the Nasdaq exchange of our shares of Common Stock on the date of the grant. Although all director compensation is approved by our Board of Directors solely upon the recommendation of the Compensation Committee, which itself makes recommendations on the advice of an independent compensation consultant