Company: CRUS
Filing Date: 2025-06-04
Form Type: DEF 14A
Source: 0000772406-25-000019
Chunk: 56

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-06-04
Form: DEF 14A
Chunk 56
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 with “cliff” vesting at the conclusion of that period. The number of shares earned, relative to a target number of shares, is based on the Company’s total shareholder return (“TSR”) measured relative to the TSR of the component companies of the Russell 3000 Index (the “Index”). Thus, the measurement entails determining our ranking among the companies that make up the components of the Index. The TSR determines a payout percentage ranging between 0–200%, which is then multiplied by the target number of MSUs.

To determine the payout percentage, the Company’s TSR for the performance period is compared against that of the companies in the Index to yield a Percentile Measurement (for example, if the Company would rank in the 75th percentile of the performance of companies in the Index during the performance period, our Percentile Measurement would be 75%). The payout percentage is a function of the Percentile Measurement as follows:

• If our Percentile Measurement is less than 25%, the payout percentage is zero;

• Threshold performance: if our Percentile Measurement is 25%, the payout percentage is 25%;

• Target performance: if our Percentile Measurement is 50%, the payout percentage is 100%;

• Maximum performance: if our Percentile Measurement is 75% or higher, the payout percentage is 200%;

• A straight line connects the threshold, target, and maximum performance points; and

• If the Company’s TSR is negative during the performance period, the maximum payout percentage is 100%.

The MSU payout percentage is therefore determined according to the following curve:

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MSUs granted prior to February 2024 were governed by the same methodology noted above, except the number of shares earned, relative to the target number of shares, was based on the Company’s TSR measured relative to the TSR of the component companies of the Philadelphia Semiconductor Index, rather than the Russell 3000 Index. The Compensation Committee approved the change in comparison indices for the reasons described in the Compensation Discussion and Analysis section of the Company’s 2024 proxy statement.

#### b. Performance Stock Units
As noted earlier, PSUs represent a new component of our performance-based equity program introduced by the Compensation Committee in fiscal year 2025. PSU awards granted to our NEOs for fiscal year 2025 consisted of performance-based restricted stock units subject to a three-fiscal-year performance period, with annual vesting based on performance achieved each fiscal year. The number of shares earned is based on the Company’s strategic revenue during fiscal