Company: AX
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001299709-25-000174
Chunk: 64

Company: Axos Financial, Inc.
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 64
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 compensation expense. Our compensation methodology is demonstrably better for stockholders and ultimately for employees as they each become stockholders with tenure and may experience personal income growth through stock price appreciation.

The Company has grown, both organically and through acquisitions, and expanded products and services in its Securities Business segment, which consists of a clearing broker-dealer, registered investment advisor custody business, registered investment advisor, and introducing broker-dealer lines of businesses. Management expects to have an increase in revenue for the Securities Business segment compared to its historical revenue, in both gross dollars and revenue percentage share of the Company’s total revenue, given the recent acquisition of the investment advisory business and organic growth of this segment. With these changes to the nature of the Company’s revenues, management and the Compensation Committee considered the ISS diversified financial services industry sector benchmark.

After considering the foregoing, management recommended, and the Compensation Committee recommended and the Board approved, an increase of 1,000,000 shares to the share reserve pool in order to satisfy the Company’s equity compensation needs for approximately the next two to three years.

Accordingly, the Amended Plan authorizes a maximum total of 7,680,000 common shares for grants to participants reflecting a 1,000,000 share increase from the 2014 Plan’s current limit of 6,680,000 shares. The approximate impact of the requested share reserve increase for the Amended Plan on stockholder dilution is shown in the below table (the below figures reflect the net amount of additional shares utilizing the Company’s three-year average net-settlement percentage relative to the outstanding basic number of shares as of September 1, 2025):

| Dilutive effect of requested new reserve shares under the Amended Plan                   |     | 1.15 | % |
| Dilutive effect of requested new reserve shares plus unissued shares available for grant |     | 2.51 | % |
| Total potential dilution (including currently outstanding awards under Plan)             |     | 4.19 | % |

It is important to note that the potential dilution is a forecast over multiple years and contains assumptions that no cancellation or forfeiture of shares would occur. The Company has a long history of making equity awards, while at the same time increasing book value per share, thereby evidencing the alignment of the Company’s compensation methodology with stockholder interests.

As noted above, the outstanding awards as of September 1, 2025 were 1,535,616 restricted stock units at weighted average grant-date fair value of $55