Company: ZVRA
Filing Date: 2025-04-29
Form Type: DEFC14A
Source: 0000897069-25-000885
Chunk: 11

Company: ZEVRA THERAPEUTICS, INC.
Filing Date: 2025-04-29
Form: DEFC14A
Chunk 11
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 andpoor corporate governance practices and the stockholders have long suffered under the leadership of the current Board of Directors. While the election at Zevra’s 2023 Annual Meeting of Stockholders brought about important change, including new leadership with extensive commercial experience, Mr. Mangless believes that other important governance issues remain unresolved, to the detriment of all Zevra stockholders. Namely, Mr. Mangless believes these unresolved issues include the Company’s governance practices of having a classified board and the use of a plurality voting standard for the election of directors in uncontested elections, and the Company’s executive compensation practices. We need to continue the change that the Proponent started in 2023 with the election of his prior nominees, which the Company has acknowledged has benefited shareholders, by electing Mr. Mickle and Mr. Regan. Poor Governance Practices and Executive Compensation Practices Need to Change Mr. Mangless believes declassification would provide stockholders the ability to evaluate each director annually, which is viewed by many institutional stockholders as increasing the accountability of directors to such stockholders. With regard to using a majority vote standard for the election of directors in uncontested elections, Mr. Mangless believes this would give stockholders a greater voice because it eliminates the ability of a small minority of stockholders, or even as few as one stockholder, to elect directors. As noted above, the other issue of concern to Mr. Mangless is the Company’s executive compensation, which he believes is excessive. In fact, stockholders seem to support this belief as they voted against the Company’s request to expand the available stock option pool after the Board had exhausted the existing pool. Unfortunately, to continue to provide themselves additional equity, management and the Board were able to circumvent the stockholder vote against the proposal by, among other things, greatly increasing the number of shares outstanding through a highly dilutive stock offering. Mr. Mangless believes these poor governance practices have resulted in the stock languishing despite the approval and successful initial launch of MIPLYFFA™ and subsequent sale of the PRV. My goal as a long-term stockholder of Zevra is for an independent Board to act in the best interests of all stockholders and follow best practices in corporate governance and executive compensation. While Mr. Mangless’ Nominees favor good corporate governance practices, they have not agreed to vote or act on the above corporate governance practices in any particular manner, as they take their fiduciary duties seriously and will only take action after being fully informed and determining what