Company: DMRC
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001437749-25-009135
Chunk: 59

Company: Digimarc CORP
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 59
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 agreements. |

| (3) | This column reflects potential vesting acceleration under the applicable Restricted Stock Award agreement. |

| (4) | This column reflects potential vesting acceleration under the Digimarc 2018 Incentive Plan, in the case where there is a Change in Control that is not a Company Transaction or if the awards are not assumed. |

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Pay Ratio</div>

We are providing the following information about the relationship of the annual total compensation of Mr. McCormack, our President and Chief Executive Officer, and the annual total compensation of our employees. For 2024, our last completed fiscal year: (i) the total annual compensation of our Chief Executive Officer was $2,127,701, and (ii) the median of the annual total compensation of all employees of our Company (other than our Chief Executive Officer) was $169,432. Based on this information, for 2024, the ratio of the annual total compensation of our Chief Executive Officer to the median of the annual total compensation of all employees was 12.6 to 1.

To identify the median of the annual total compensation of all our employees, as well as to determine the annual total compensation of the median employee, the methodology and the material assumptions, adjustments, and estimates that we used were as follows. We determined that as of March 4, 2025, our employee population consisted of 148 individuals working at the Company and its consolidated subsidiaries, with 76.4% of these individuals located in the United States and 23.6% located in Europe. We selected March 4, 2025, as the date upon which we would identify the median employee, as this reflects the employee base after we concluded our reorganization as described in our Form 8-K filed on February 26, 2025.

To identify the median employee from our employee population, we calculated each employee’s target annual compensation for 2024 based on information from the Company’s human resources and payroll records, which included the annual base salaryfor salaried employees, annualized for employees hired during 2024; the hourly rate multiplied by standard weekly hours worked for hourly employees, annualized for employees hired during 2024; any annual corporate bonus or other compensation at target; and the grant date fair value of equity incentives granted during 2024. All compensation elements for non-U.S. employees were converted to U.S. dollars using December 31, 2024, currency exchange rates.