Company: VCYT
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001384101-25-000051
Chunk: 61

Company: VERACYTE, INC.
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 61
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 the vesting date the officer will still be eligible to receive the earned PSUs. At the time these 2024 PSUs were awarded, the Compensation Committee and Board of Directors believed our primary and immediate focus should be on increased, sustained revenue growth across multiple time horizons and with increased attention to profitability. To that end, in addition to including short-term one-year revenue growth and cash balance goals in the 2024 annual bonus plan, the Compensation Committee felt the 2024 PSU’s two-year and three-year measurement periods were the most appropriate length for our growth strategy and drive toward profitability. In the Compensation Committee’s opinion, this structure strikes a reasonable balance between investing for long-term growth and an ongoing focus on medium-term revenue increases, balances with cash management, given the dynamic changes in the diagnostic and testing marketplace. For purposes of the 2024 PSU awards, “revenue” means our total revenue calculated in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"), as reported in our annual financial statements for the applicable year excluding adjustments for acquisitions or similar transactions and including adjustments for the impact of foreign currency exchange and portfolio decisions made by the Board to discontinue any of the company’s products for which projected revenue was included in the forecast on which the revenue target was based and “cash balance” means our cash and cash equivalents as of December 31 of the subject year calculated in accordance with U.S. GAAP, as reported in its annual

#### 56Veracyte2025 Proxy Statement

#### Executive Compensation
financial statements for the subject year, excluding adjustments for acquisitions or similar transactions and including adjustments for capital raises, capital uses and the impact of acquisition-related contingent consideration obligations arising or occurring on or following the start of the applicable performance period.

Significant Competitive Harm in Disclosing Thresholds

We have not publicly disclosed the specific PSU performance thresholds because we believe advance disclosure of the thresholds could cause significant competitive harm to our business. The thresholds were purposefully set to be more aggressive than our disclosed guidance and long-term financial plan and are fully achievable only by outperforming such guidance and plan. If specific thresholds were disclosed, they could be treated as our new guidance or long-term financial plan, which would not align with (i) our purpose of using the PSU performance thresholds to encourage exceptional outperformance of our rigorous disclosed guidance and plan, and (ii) how we understand the role the PSU performance thresholds have in our long-term business and strategy. Disclosing the specific thresholds could also create a retention risk for our