Company: TVRD
Filing Date: 2025-02-14
Form Type: 424B3
Source: 0001104659-25-014310
Chunk: 642

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-02-14
Form: 424B3
Chunk 642
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 stockholder interests by linking pay and performance. Cara’s Compensation Committee determines these target bonus percentages for each executive officer position primarily based on the range of target bonus percentages for similar positions at peer companies. Cara’s Compensation Committee periodically reviews and evaluates each executive officer’s target bonus percentage. The target bonus percentages for Cara’s named executive officers are as follows:

| Named Executive Officer | ​ | ​ | TargetBonus % |   |     |   | ​ |
| Christopher Posner      | ​ | ​ | ​             | ​ | 60% | ​ | ​ |
| Ryan Maynard            | ​ | ​ | ​             | ​ | 40% | ​ | ​ |
| Scott Terrillion        | ​ | ​ | ​             | ​ | 40% | ​ | ​ |

In August 2024, the Compensation Committee established a predefined performance objective for Cara’s named executive officers, which provides that 100% of the target bonus for each named executive officer is payable if Cara enters into a definitive agreement for a merger transaction on or before March 31, 2025, which has now occurred, with the payment of the bonus conditioned on the closing of the merger. The actual performance-based bonus paid, if any, will be calculated by multiplying the executive’s annual base salary, target bonus percentage and percentage achievement of the performance objectives. Equity Incentive Awards Cara uses equity awards to motivate its executive officers, including the named executive officers, to increase the long-term value of its common stock and, thereby, to align the interests of Cara’s executive officers with those of its stockholders. These equity awards are intended to further its success by ensuring that sustainable value creation is a key factor in its executive officers’ management of its business. The size and form of these equity awards is determined by the Compensation Committee in its discretion. As described below, in 2024, Cara granted equity awards in the form of performance-based stock options to its named executive officers as part of its long-term incentive compensation program. In prior years, the Compensation Committee also granted a portion of the annual equity awards in the form of service-based stock options, time-based RSUs and performance-based RSUs. However, in 2024, the Compensation Committee elected not to issue RSUs or service-based options, but rather to grant exclusively performance-based stock options in order to further incentivize Cara’s executive officers to focus on corporate performance objectives. Performance-based Stock Options. The Compensation Committee elected to use performance-based stock options covering shares of Cara’s common stock as long-term