Company: CDLX
Filing Date: 2025-04-03
Form Type: DEF 14A
Source: 0001666071-25-000046
Chunk: 27

Company: Cardlytics, Inc.
Filing Date: 2025-04-03
Form: DEF 14A
Chunk 27
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 large part, on our ability to maintain a competitive position in retaining and motivating our employees, and that the issuance of equity awards is a key element in accomplishing these goals. The 2025 Plan will allow us to continue to provide performance-based and time-based incentives to our eligible service providers. The Board of Directors believes that the 2025 Plan will enable us to give multi-year, market-competitive equity awards to our broad-based employees, which we believe will ensure retention and motivation of our employees, and thus provide us with competitive strength in the market. The Board of Directors also believes that the 2025 Plan will allow the Company to continue its practice of having the majority of the equity it distributes in any given year to broad-based employees, and ensure continuity and drive for the employees adding crucial value to the Company and its stockholders. Therefore, the Board of Directors believes that the approval of the 2025 Plan is in the best interests of the Company and its stockholders and recommends a vote in favor of this Proposal 3.

The Size of Our Share Reserve Request Is Reasonable

As of March 26, 2025, we had 487,115 shares available for grant under the 2018 Plan. If the 2025 Plan and the new share reserve of 10,000,000 shares is approved by our stockholders, we will have 10,487,115 shares available for grant immediately after the Annual Meeting (based on shares available as of March 26, 2025). If the 2025 Plan is not approved by our stockholders, the 2018 Plan will continue in effect, but we will be extremely limited in the grants that we will be able to make, which could place us in a disadvantageous position as compared with our competitors, resulting in reduced employee retention.

We Manage Our Equity Incentive Award Use Carefully, and Dilution Is Reasonable

We continue to believe that equity awards are a vital part of our overall compensation program. However, we recognize that equity awards dilute existing stockholders, and, therefore, we must responsibly manage the growth of our equity compensation program. We are committed to effectively monitoring our equity compensation share reserve, including our “burn rate,” to ensure that we maximize stockholders’ value by granting the appropriate number of equity incentive awards necessary to attract, reward, and retain employees. The tables below show our overhang and burn rate information.

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#### Overhang
The following table provides certain additional information regarding