Company: DMRC
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001437749-25-009135
Chunk: 17

Company: Digimarc CORP
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 17
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 Governance, Nominating, and Sustainability Committee can be reached at: Katie.Kool@digimarc.com and Sheila.Cheston@digimarc.com.

Officer and Director Stock Ownership Guidelines

The Board believes that it is important for its members and executive officers to hold significant baseline amounts of Company stock to align their interests with those of long-term shareholders. In 2024, the Board updated our stock ownership guidelines and established the following levels of required holdings:

| ● | For non-employee directors: 6x their regular annual Board service cash retainer; |
| ● | For the Chief Executive Officer: 6x annual base pay;                             |
| ● | For the Chief Financial Officer: 3x annual base pay; and                         |

| ● | For the other named executive officers: 2x annual base pay. |

To calculate the number of shares necessary to satisfy our Stock Ownership Guidelines, we include the following shares: (1) shares owned directly (or indirectly through a 401(k) plan or Employee Stock Purchase Plan); and (2) unvested restricted stock awards, unvested restricted stock units (“RSUs”) that vest based solely on continued service, and performance-based restricted stock units (“PRSUs”) that have been earned based on performance but remain subject to time-based vesting. For converting the targeted value to a number of shares, we use the higher of the 20-day moving average price of our common stock at the end of our most recent fiscal year or at the end of each fiscal quarter of the most recent fiscal year.
Non-employee directors, our Chief Executive Officer, and all named executive officers are required to retain 50% of net vested securities until the individual is in compliance with the guideline ownership requirement.

As of December 31, 2024, our Chief Executive Officer and four other named executive officers exceeded the enhanced guidelines. Our Chief Revenue Officer, who joined in late 2023 is on track to meet the guidelines. As of December 31, 2024, all the directors then serving exceeded the enhanced guidelines.

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From time to time, the Compensation and Talent Management Committee will review and update (as appropriate) the rules and standards governing our Stock Ownership Guidelines, including the following:

| ● | which equity holdings count toward the ownership requirement;                                                                       |
| ● | the share price used to calculate the value of ownership for compliance purposes, including the duration of the measurement period; |
| ● | holding and accumulation requirements;