Company: RCUS
Filing Date: 2025-04-22
Form Type: DEF 14A
Source: 0001724521-25-000052
Chunk: 51

Company: Arcus Biosciences, Inc.
Filing Date: 2025-04-22
Form: DEF 14A
Chunk 51
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 allows us to deliver value while using fewer authorized shares. In sizing the equity grants, our Compensation Committee approves a value. To mitigate the impact of stock price volatility on the number of options and RSUs to be granted, the number of each type of award to be granted is determined based on a 30-day average stock price. For the grant date fair value of the stock options and RSUs we granted, please see the Summary Compensation Table and 2024 Grants of Plan-Based Awards Table below.

Other Benefits

Our executive officers are eligible to participate in our health and welfare plans to the same extent as are all full-time employees generally. We have established a 401(k) tax-deferred savings plan, which permits participants, including our executive officers, to make contributions by salary deduction pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended. We are responsible for administrative costs of the 401(k) plan. For the 2024 plan year, we matched 100% of the participant’s salary deferrals up to 6% of their salary and a maximum of $5,000 per participant for the plan year. In addition, we provided a health and wellness and mobile device management stipend of $600 per quarter for each eligible employee.

Employment Arrangements

We have entered into an offer letter with each of our named executive officers. Each offer letter includes the named executive officer’s initial base salary, target bonus opportunity and equity award. Each offer letter also includes severance benefits, which have been superseded by our severance program described below under the heading “Severance and Change in Control Benefits”.

Tax and Accounting Treatment of Compensation

Under Section 162(m) of the Internal Revenue Code (“Section 162(m)”), compensation paid to each of our “covered employees” that exceeds $1 million per taxable year is generally non-deductible. For these purposes, a “covered employee” means anyone who served as our principal executive officer at any time during the year, anyone who served as

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our principal financial officer at any time during the year, and any employee who is among the three highest compensated executive officers for the taxable year (other than the principal executive officer and principal financial officer), regardless of whether the executive officer is serving at the end of the taxable year and regardless of whether the executive officer’s compensation is subject to disclosure for the last completed fiscal year under the applicable SEC rules. In addition, once an individual becomes a covered