Company: PHR
Filing Date: 2025-05-14
Form Type: DEF 14A
Source: 0001412408-25-000027
Chunk: 60

Company: Phreesia, Inc.
Filing Date: 2025-05-14
Form: DEF 14A
Chunk 60
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 maximize their retentive value and to promote a longer-term horizon for our management team. PSUs granted to our NEOs cliff vest three years after the grant to the extent they are earned for relative TSR performance.

In fiscal 2025, we granted PSUs as part of our annual equity award program for our executive officers. Our compensation committee reaffirmed its commitment to aligning our NEOs' compensation with the interests of our shareholders by maintaining a high 80% proportion of PSUs to RSUs for our Chief Executive Officer's fiscal 2025 equity grant, therefore placing a significant portion of his compensation "at risk" based on the future performance of our stock price compared to the companies in the Russell 3000 stock index at the time of grant. Our Chief Executive Officer was granted target PSUs for 80% of his target annual equity value for the second consecutive year in order to align his rewards from equity with the long-term performance of the Company for shareholders. In addition, Messrs. Gandhi, Roberts and Linetsky were each granted target PSUs for 50% of their respective target annual equity awards, and Ms. Hoffman was granted target PSUs for 35% of her target annual equity award. We believe that PSUs further align the interests of our NEOs and our shareholders by providing our NEOs with exposure to stock price performance relative to alternative investments.

Each PSU cliff vests three years from the grant date if the performance condition is met and if the award recipient continues to be employed at Phreesia on the three-year vesting date. Performance conditions for the PSUs are measured as follows: 50% of the PSUs are measured 2.5 years following the grant date, and the remaining 50% of the PSUs are measured six months later on the date that is three

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years following the grant date. Both tranches of earned PSUs cliff vest after three years. The bifurcated performance periods of 2.5 years and three years are meant to neutralize the effect of short-term price volatility at the end of three years. The Company’s target performance level requires the 2.5-year and three-year TSRs to be above the median, so PSUs are earned at target if TSR performance is at the 55 th percentile relative to the constituents of the Russell 3000 stock index. Measurement uses the 60-day VWAP immediately prior to the start of the each performance period and uses the 20-day VWAP immediately