Company: DAWN
Filing Date: 2025-04-11
Form Type: DEF 14A
Source: 0001140361-25-013462
Chunk: 50

Company: Day One Biopharmaceuticals, Inc.
Filing Date: 2025-04-11
Form: DEF 14A
Chunk 50
---
 December 31, 2023, which differs from the accounting value reported in the Summary Compensation Table. |

The exercise price for the stock options is $14.44, the closing price of our common stock on the grant date. In determining the aggregate number of shares underlying our equity awards, the Compensation Committee considers the dilutive effect of our equity incentive compensation practices and the overall impact that equity awards will have on stockholder value. The Compensation Committee also considered the value of each NEO’s existing equity holdings, including the current economic value and vesting schedules of any unvested equity awards, and the ability of those unvested holdings to satisfy our reward and retention objectives. Stock Options The Compensation Committee believes that stock options are effective at motivating executives to pursue our long-term goals because options only have value if our stock price appreciates after the grant date. The options granted in 2024 will vest in equal monthly increments over four years (i.e., 1/48 th), beginning in February 2024, so long as the recipient remains in service to Day One, and they will remain exercisable until the tenth anniversary of the grant date. Unvested options will be forfeited if an executive is no longer in service to Day One, but vested options will be exercisable for three months from the date an executive’s service with Day One terminates. Restricted Stock Units The Compensation Committee believes that RSUs that vest over several years are effective at retaining talented executives and motivating them to pursue our long-term goals because the value of RSUs is directly tied to our stock price. The RSUs granted in 2024 will vest in equal quarterly increments over four years (i.e., 1/16 th), beginning in February 2024, so long as the recipient remains in service to Day One. Each RSU represents a contingent right to receive one share of our common stock following vesting.

39

TABLE OF CONTENTS Compensation Practices and Policies Retirement Savings and Health and Welfare Benefits We currently maintain a 401(k) retirement savings plan for our employees, including our NEOs, who satisfy certain eligibility requirements. Our NEOs participate in the 401(k) plan on the same terms as other full-time employees. The Internal Revenue Code allows eligible employees to defer a portion of their compensation, within prescribed limits, on a pre-tax basis through contributions to the 401(k) plan. We match up to 4% of employees’ contributions to their accounts in the 401(k) plan. Matching contributions are fully vested on the date they