Company: ISRG
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001035267-25-000098
Chunk: 77

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 77
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 Plan. The 2010 Plan adopted many features designed to address stockholders’ concerns related to equity incentive plans, such as prohibiting repricing, eliminating “evergreen” share replenishment features, granting only non-discounted options, and disallowing transfer of options to third parties. In the years following its adoption, the 2010 Plan has been amended and restated, most recently in 2024, to, among other things, increase the number of shares of common stock reserved for issuance.

To continue to align the long-term interests of our employees with those of our stockholders and to attract and retain the highest quality of talent in a highly competitive labor market, we have determined to amend and restate the 2010 Plan to further increase the number of shares of common stock reserved for issuance by 5,000,000 shares and also include several features that we believe are consistent with sound corporate governance practices and/or maintaining our flexibility to grant awards to our key service providers (as described above). Our request is approximately 1.4% of the total shares of common stock outstanding as of the record date. The Compensation Committee, a committee of the Board, and the Board have approved and are asking you to approve the Amended 2010 Plan. Non-approval of the Amended 2010 Plan may compel the Company to increase the cash component of employee compensation, because the Company would need to replace components of compensation previously delivered in equity awards to such persons.

The Company believes that long-term equity awards are an extremely important way to attract and retain a passionate team and align employees’ interests with the Company’s stockholders. Over the past several years, the Company’s investment in the expansion of minimally invasive care, including the development of systems and associated instruments and accessories, regulatory approvals and compliance, system applications, training clinicians and their care teams, and otherwise expanding the market for its products, has resulted in strong growth in the Company’s revenue and earnings. Over the period from 2014 through 2024, the Company’s annual revenue grew from $2.1 billion to $8.4 billion; net income grew from $0.42 billion to $2.34 billion, while the Company’s cash and investments grew from $2.5 billion as of December 31, 2014 to $8.8 billion as of December 31, 2024. From January 1, 2015 through December 31, 2024, the Company has also repurchased 41.2 million shares