Company: VCYT
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001384101-25-000051
Chunk: 60

Company: VERACYTE, INC.
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 60
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 March 2, 2024 and then in equal quarterly installments over the following 12 quarters, based on continuing service on each vesting date (until the fourth anniversary of March 2, 2024).

#### Performance-Based RSUs
In March 2024, we again granted PSUs to certain of our executive officers, referred to as the 2024 PSUs. In 2023, we selected and continue to use revenue as a performance metric because we believe it is, and continues to be, an important indicator of our strategic long-term growth at this stage in our company’s maturity and it has been an important metric used by investors to assess the health and trajectory of our business. Further, in 2023, we incorporated an additional cash balance performance metric into this program to drive and reward improving profitability and durable growth, which is a key focus for the company. The 2024 PSUs continue to include revenue and cash balance as performance metrics. Additionally, to enhance the retention value of our long-term equity program and to drive sustained stockholder value growth, the 2024 PSUs also include a time-based service requirement such that any “achieved” PSUs will vest approximately one year after the end of the applicable performance period, subject to the officer’s continued service to Veracyte.

Consistent with our 2023 PSU awards, the 2024 PSU awards are split into a two-year measurement period and a three-year measurement period to reward growth and execution over time. Forty percent of the total number of shares subject to the PSU granted in 2024 will be earned if the revenue and cash balance for the two-year period ending December 31, 2025 equals or exceeds a certain threshold and 60% of the total number of shares subject to the PSU will be earned if the revenue and cash balance for the three-year period ending December 31, 2026 equals or exceeds a higher threshold. Achievement between threshold, target and maximum levels of performance of each metric is interpolated, with a maximum achievement level of 150% of the target PSUs for each performance period. For the 2024 PSUs, the officer must remain in service with Veracyte at the end of each of these measurement periods to “earn” the PSUs at the approved achievement level and the officer must remain in service until the following year end in order for the PSUs to vest, with the exception of a qualified termination. In the event of a qualified termination after the end of PSUs were earned and before