Company: IPGP
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0001111928-25-000054
Chunk: 63

Company: IPG PHOTONICS CORP
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 63
---
 granted under the 2025 Plan subsequent to May 20, 2035, which is the ten year anniversary of the Company’s 2025 annual meeting of stockholders.

The Board expects that the 2025 Plan will be an important factor in attracting, retaining and rewarding high caliber employees, non-employee directors and independent contractors essential to the Company’s success and in providing incentives to these individuals to promote the success of the Company. If stockholders do not approve the 2025 Plan, we would be unable to continue making grants under the 2006 Plan once the share reserve has been exhausted. This would make it difficult for the Company to attract, retain and incentivize talent.

A metric that we use to measure the cumulative impact of our equity compensation plans is overhang. The Company measures overhang as (a) the number of shares subject to equity awards outstanding (with PSUs included at target performance level) plus the number of shares available for grant under the Company’s equity compensation plans, divided by (b) the total shares of common stock outstanding. As of March 10, 2025, the Company had (i) stock options to purchase 547,949 shares of common stock outstanding with a weighted average exercise price of $159.47 and weighted average remaining term of 2.80 years, (ii) 1,085,100 shares underlying unvested full-value awards subject to time-based vesting and (iii) 308,758 unvested full-value awards subject to performance-based vesting (assuming the target level of performance). As of March 10, 2025, our overhang was approximately 7.11. Assuming the 2025 Plan had been approved on March 10, 2025, our overhang would have been approximately 9.46% as of such date.

|                                                   |     | As of March 10, 2025 |     |            |   | Adjusted for 2025 Plan as of 
 March 10, 2025               |     |            |   |
|:--------------------------------------------------|:----|:---------------------|:----|-----------:|:--|:-----------------------------|:----|-----------:|:--|
| Total shares underlying outstanding equity awards |     |                      |     |  1,941,807 |   |                              |     |  1,941,807 |   |
| Total shares available for grant                  |     |                      |     |  1,095,378