Company: DVAX
Filing Date: 2025-04-03
Form Type: PREC14A
Source: 0000930413-25-001153
Chunk: 65

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-04-03
Form: PREC14A
Chunk 65
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 2025, we met with over 80 investors and analysts.

| 46 |

During our prior discussions with
stockholders, which generally include an opportunity for detailed questions, none of our stockholders have expressed any
significant concerns about our executive compensation practices, although the Proxy Advisory Firms and certain stockholders
have previously expressed a preference for us to increase the percentage of executives’ equity awards that use
performance-based vesting, rather than time-based vesting. Based on this feedback, in 2023, the Compensation Committee
increased the performance-based portion of the NEOs’ equity awards from 12.5% to 30% for 2023. This
percentage represents the portion of the stock option equivalents awarded to each NEO that is tied to a performance metric
rather than time-based vesting. Stock option equivalents are calculated as (number of stock options granted) plus (full value
awards divided by 1.4).

We further increased this proportion to
33% for 2024. We have not made any other changes to our executive compensation policies or processes as a result of our
say-on-pay vote or stockholder feedback for 2024. We will monitor and continually evaluate our compensation program going
forward, taking into account our stockholders’ views, input from our independent compensation consultant, peer group
practices, evolving market dynamics and our transforming business needs, including, but not limited to, recruitment and
retention.

Executive Compensation Philosophy and Objectives

We believe our NEOs’
compensation should align our executives’ interests with that of our stockholders over the long-term through
achievement of strategic corporate objectives that are fundamental to our business and that are intended to create long-term
stockholder value. Our executive compensation programs are designed to be competitive within our industry and within our peer
group to enable us to attract, motivate, reward, and retain outstanding talent. Our compensation programs are based on the
following key principles:

| • | Directly link a meaningful proportion of pay to performance and achievement of corporate and individual goals;                     |
| • | Clearly align our executives’ interests with those of our stockholders by using equity compensation as well as cash                
 incentive     programs using goals that we believe help drive long-term stockholder value;                                         |
| • | Based on past performance, make corresponding adjustments over time to various compensation components, including future salary    
 increases, bonus multipliers, and equity grants to incentivize future performance;                                                 |
| • | Achieve a mix