Company: MRCY
Filing Date: 2025-09-10
Form Type: DEF 14A
Source: 0001049521-25-000029
Chunk: 74

Company: MERCURY SYSTEMS INC
Filing Date: 2025-09-10
Form: DEF 14A
Chunk 74
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 be made at the time of vesting.

(5) The amount disclosed in the Grant Date Fair Value of Stock and Option Awards column represents the grant date fair value of each award, as calculated in accordance with ASC Topic 718. For a further discussion of our RSUs, see "Compensation Discussion and Analysis – Elements of Fiscal 2025 Target Pay – Long-Term Incentives – Restricted Stock Units." For a further discussion concerning the effect of a change in control or termination of employment on outstanding awards, see "– Potential Payments Upon Change in Control or Termination of Employment."

(6) Represents a one-time award of RSUs to Mr. Farnsworth in connection with the expansion of his role—including leading a rigorous and focused organization-wide management operating system, actioning a robust and aligned technology investment strategy, overseeing execution-related customer engagements and driving operational performance—following the resignation of Mr. Wells. These RSUs vest, and the distribution of shares underlying these awards will be made, in equal annual increments over the three-year period following the grant date. For a further discussion concerning the effect of a change in control or termination of employment on this award, see "– Potential Payments Upon Change in Control or Termination of Employment."

(7) Represents PSUs granted during fiscal 2025 as Company matching awards in respect of the participant's irrevocable election in December 2024 to enroll in our Deferred Compensation Matching Plan ("DCMP") for calendar 2025. The DCMP allows eligible employees to defer up to 50% of their base salary and 100% of their annual incentive plan bonus that would have otherwise been paid to them during the calendar year. The Company provides PSU matching awards for compensation deferrals under the DCMP to restore benefits that are otherwise limited by IRS regulations governing qualified plans such as our 401(k) plan. Each year, the IRS sets caps on employee deferrals to qualified plans and on the amount of employee compensation that can be considered for employer matching contributions in qualified plans. These limits can reduce tax-deferred savings opportunities and related matching contributions available to highly compensated employees. The DCMP is designed to address this gap by allowing eligible employees to defer additional compensation and receive PSU matching awards based on the value that would have been provided as employer matching contributions for these deferrals under our 401(k) plan absent IRS limits. Under our 401(k) plan, we match 100% of employee contributions, subject to a maximum of 6% of the employee's eligible cash compensation for