Company: PACB
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001299130-25-000090
Chunk: 40

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 40
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. Compensation levels in these markets remain relatively high and we must compete with large and well-resourced competitors. In the markets where we operate, we must compete for talent with some of the largest companies in the world including with some of the largest genomic sequencing companies in the world. Our success depends on our ability to attract, retain and motivate key employees. To compete in a competitive market for talent, we believe that it is important to offer competitive compensation packages that include equity and cash components. Equity compensation is an important part of our employment value proposition. Our Board of Directors and Compensation Committee believe we could face material retention risks, including with respect to key employees, if we are unable to provide long-term retention incentives.

• Historical Grant Practices. The Compensation Committee considered our historical grants of equity awards in the past three years. Under our equity incentive plans, we granted stock options and RSUs covering 10,600,174 Shares in 2022, 7,559,966 Shares (excluding Shares subject to PSUs granted in 2023 covering an aggregate of 564,429 Shares at target, or 200% of such number of Shares assuming maximum performance) in 2023, and 13,215,686 Shares in 2024, respectively, for a total of 31,375,826 Shares over such three-year period. In the first quarter of 2025, we granted stock options and RSUs covering 19,180,167 Shares, including stock options and RSUs covering 3,000,000 Shares for our recently hired Chief Financial Officer.

• Forecasted Usage. If stockholders approve the amendment to the 2020 Plan, the Compensation Committee anticipates that we likely need to again request additional Shares for the 2020 Plan at our 2026 Annual Meeting of Stockholders, based on our share price, recent burn rate history, and historical and expected new hire and annual grant practices. In addition, if stockholders approve the amendment to the 2020 Plan, we do not intend to grant any stock options or RSU covering Shares, or increase the number of available Shares under, our 2020 Inducement Equity Incentive Plan (the “Inducement Plan”). In making this determination, the Compensation Committee considered the potential impact of any expected future changes in employee population on projected share use, in particular given our ongoing efforts to execute on our continued transformation. We cannot predict our future equity grant practices, the future price of our shares or future hiring activity with any degree of certainty at this