Company: DMRC
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001437749-25-009135
Chunk: 42

Company: Digimarc CORP
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 42
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Compensation and Governance Practices

The Compensation Committee regularly reviews best practices in executive compensation and governance. A summary of “What We Do” and “What We Don’t Do” is listed below.

|   | What We Do                                                                                                                                                                       |     |   | What We Don’t Do                          |
| ● | Pay-for-Performance philosophy and culture                                                                                                                                       |     | ● | No hedging and pledging of Digimarc stock |
| ● | Strong emphasis on performance-based incentive awards                                                                                                                            |     | ● | No perquisites                            |
| ● | Performance-based long-term equity awards focused on growth and shareholder value                                                                                                |     | ● | No excise tax gross ups                   |
| ● | Robust stock ownership and retention guidelines                                                                                                                                  |     |   |                                           |
| ● | Claw-back policies that cover short- and long-term incentive awards in the event of financial restatement as well as executive misconduct causing financial or reputational harm |     |   |                                           |
| ● | Restrictions on short-term or speculative securities transactions                                                                                                                |     |   |                                           |
| ● | Double trigger change of control vesting provisions                                                                                                                              |     |   |                                           |
| ● | Independent Board committee oversight                                                                                                                                            |     |   |                                           |
| ● | Independent compensation consultant                                                                                                                                              |     |   |                                           |

<div align='center'>Our Compensation Process</div>

Compensation Philosophy

Digimarc’s goals for its executive compensation program are to: (1) attract, retain, motivate, and appropriately reward the Company’s executive officers; and (2) align the interests of the Company’s executive officers with those of Digimarc shareholders. Digimarc seeks to accomplish these goals in a way that rewards performance and is aligned with its shareholders’ long-term interests. For 2024, the Company’s primary objectives for the plan evolved further to:

| (1) | Provide a competitive target compensation opportunity |

| (2) | Align the interest of the Company’s executive officers with those of Digimarc shareholders, with a reward for long-term value creation |

| (3) | Reward short-term and long-term performance in line with creating shareholder value, shifting compensation from base salary to short-term and long-term incentives |

| (4) | Create a collaborative focus for the executive team |

| (5) | Ensure compensation provides attractive fixed compensation, with an increased focus on performance |

| (6) | Create a greater pay for performance alignment, providing upside leverage for greater performance and wealth creation |

| (