Company: ISRG
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001035267-25-000098
Chunk: 79

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 79
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 are critical to the long-term success of the Company. The Company stresses a team approach and environment, believes that all employees should be driving a common set of goals, and believes that our employees’ interests should be aligned with the interests of our stockholders. Accordingly, all U.S. employees and nearly all non-U.S. employees are granted long-term equity awards.

In addition to the increase in the shares of common stock reserved for issuance, the Amended Plan also extends the term of the plan to January 30, 2035, and specifies the treatment of awards in connection with a change in control.

#### Burn Rate and Overhang
In administering our equity program, we consider both our “burn rate” and our “overhang.”

We define “burn rate” as the number of equity awards granted in the year, net of cancellations, divided by the sum of the undiluted weighted-average shares of our common stock outstanding during the year plus the number of stock options, RSUs, and PSUs (measured at actual performance for any completed performance periods or target performance for any open performance periods) that have been issued and are outstanding. The “burn rate” measures the potential dilutive effect of our annual equity award grants. We granted 2,419,330 RSUs and 108,823 PSUs in 2024, and 112,125 stock options, 317,924 RSUs, and 11,341 PSUs were forfeited or canceled in 2024. As of December 31, 2024, the number of weighted-average shares outstanding was 355,186,032, and the total number of stock options, RSUs, and PSUs (measured at actual performance for any completed performance periods or target performance for any open performance periods) outstanding were 7,062,099, 5,203,102, and 326,522, respectively. For 2024, our burn rate was 0.6%. Our three-year average burn rate from 2022 through 2024 was 0.8%.

We define “overhang” as the shares subject to equity awards outstanding but not exercised, plus shares available to be granted (the “available equity award shares”), divided by the total shares of common stock outstanding. The overhang measures the potential dilutive effect of outstanding equity awards and available equity award shares.

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The following table shows the details of shares available to grant as of February 27, 2025 and December 31, 2024