Company: PGEN
Filing Date: 2025-05-06
Form Type: PRE 14A
Source: 0001140361-25-017535
Chunk: 100

Company: PRECIGEN, INC.
Filing Date: 2025-05-06
Form: PRE 14A
Chunk 100
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 Importance of Long-Term Equity Incentives . Long-term equity incentives are an important component of our executive compensation program, motivating our non-employee directors and other service providers to make decisions that focus on creating long-term value for shareholders, aligning their interests with the interests of shareholders, and serving as an effective recruitment and retention tool. 74 TABLE OF CONTENTS Historical Burn Rate . We are committed to managing the use of our equity incentives prudently to balance the benefits equity compensation brings to our compensation program with the dilution it causes our shareholders. As part of our analysis when considering the proposed share increase, we considered the 2019 Plan’s three-year average “burn rate,” or the number of shares subject to equity awards granted from the first quarter of 2022 through the first quarter of 2025, divided by the weighted average number of shares outstanding for that period. For each of 2024, 2023, and 2022, our “burn rate” was 1.4%, 1.1%, and 0.9%, respectively. We also considered that during the period commencing in the first quarter of 2022 through the first quarter of 2025, we made equity grants to our non-employee directors in lieu of cash retainers, and we considered the remaining life of the 2019 Plan. We believe these compensation decisions are critical to the development and strength of our Board. Overhang Percentage . See Proposal No. 6 above for information regarding the Company’s overhang percentage with respect to outstanding equity awards under the 2013 Plan, 2019 Plan and 2023 Plan, and shares available for future equity awards under the 2019 Plan and 2023 Plan. Shareholder Value Transfer . When evaluating the appropriate number of shares to increase the share reserve under the 2019 Plan, we reviewed the shareholder value transfer of the proposed increase, calculated as the value of available shares and plan awards as a percentage of our market capitalization, and determined that the addition of 1,100,000 shares to the 2019 Plan share reserve was reasonable and consistent with industry guidelines. Expected Duration . We expect that the shares available for issuance pursuant to future awards, including the additional shares if this proposal is approved by our shareholders, will be sufficient for currently anticipated awards under the 2019 Plan through at least the 12-month period following such approval of the proposal. Expectations regarding future share usage could be impacted by a number of factors such as future use of grants