Company: ZM
Filing Date: 2025-05-01
Form Type: DEF 14A
Source: 0001140361-25-016910
Chunk: 48

Company: Zoom Communications, Inc.
Filing Date: 2025-05-01
Form: DEF 14A
Chunk 48
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 Committee understands that using a historical average stock price can result in the ultimate grant date value of an award as required to be reported in the Summary Compensation Table and the Grants of Plan-Based Awards table under ASC 718 being higher or lower than the target grant value but has considered this, in consultation with Aon, and determined that the process described above is the most appropriate as a general practice for us at this time. Equity Grant Programs. We generally grant equity awards to our named executive officers under the same programs and methodology that apply to all employees across our organization, which we believe builds trust, transparency, and teamwork. Our equity programs have evolved over the years since we became a public company in 2019, and our Compensation Committee continues to evaluate the most appropriate compensation programs to attract and retain employees and motivate and reward them for our long-term performance. Four-Year New Hire and Refresh Awards. We have typically granted equity awards upon an executive officer’s commencement of employment or promotion that vest over a four-year period, followed by four-year “refresh” grants when these awards are substantially or fully vested, or otherwise not providing sufficient retention and incentive for our employees. The value of our four-year equity awards generally appears higher than the grant values of other companies, when viewed on a single year basis. As such, these awards should generally be viewed in the context of compensation over a four-year period. In April 2024, we granted a four-year “refresh” award to Mr. Sankarlingam, who had received a four-year new hire award in July 2020. The Compensation Committee determined the size of the four-year “refresh” award in its subjective discretion, using its experience and business judgment, considering various factors, including market data, individual performance, current equity awards granted (including vested and unvested portions), and total target cash and equity compensation opportunity. The Compensation Committee considered the annualized value of Mr. Sankarlingam’s award when evaluating the appropriate amount with the resulting total compensation approximating between the 50th and 75th percentiles of market data for annual equity grant values and annual total compensation for similar roles. The Compensation Committee determined this value was appropriate to provide Mr. Sankarlingam incentive to remain fully focused and engaged on the continued growth of our organization for the long-term. In October 2024, we granted a four-year new hire award to Ms. Chang in connection with her commencement of employment with us. The Compensation Committee determined the size of Ms. Chang’s grant based on the