Company: SNPS
Filing Date: 2025-02-14
Form Type: DEF 14A
Source: 0000883241-25-000008
Chunk: 76

Company: SYNOPSYS INC
Filing Date: 2025-02-14
Form: DEF 14A
Chunk 76
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 stock price, further aligning NEO interests with long-term stockholders. Annual RSUs have upside potential but deliver value even during periods of market or stock price underperformance. |     | Annual stock optionswith time-based vesting, which vest over four years with 25% of the shares vesting on the one-year anniversary of the grant date, and the remaining shares vesting quarterly thereafter. Annual stock options encourage long-term performance as they are only valuable if our stock price increases over time, as the awards vest. |

#### SUMMARY OF THE FISCAL 2024 PRSU PROGRAM
The fiscal 2024 PRSU program is designed to promote continued revenue growth and sustained value creation for our stockholders. The material features of the fiscal 2024 PRSU program are described in the table below.

(1) The S&P 500 Information Technology Sector Index was selected to provide a broad representation of the potential opportunity cost of investing in Synopsys vs. other technology companies from an investor’s perspective.

#### 72
| PROPOSAL 4 — Advisory Vote to Approve Executive Compensation |

Target Value. The size of the annual equity awards granted to each NEO in the second fiscal quarter of fiscal 2024 is based on an estimated target dollar value. The Compensation Committee considered:

• the NEO’s role and responsibilities,

• historical compensation levels,

• the impact of award size on our burn rate,

• pay at comparable companies, which has evolved in recent years to reflect our growth, and

• internal pay equity in determining awards.

Our equity budget for the coming year was also a critical factor, as the Compensation Committee is mindful of potential stockholder dilution and internal pay equity between our NEOs and employees in general when approving grants.

The target dollar value was converted into a number of shares based on estimated conditions on the grant date, as described in “Equity Element Allocation” below. The following table sets forth the initial target value of each NEO’s equity grants as considered by the Compensation Committee, compared to the previous year's initial target value. The target dollar value for each NEO's annual equity awards differ from the actual grant date fair values reported in the “Stock Awards” column in the "Summary Compensation Table" on page 84and the "Grants of Plan-Based Awards" table on page 86, which are computed in accordance with stock-based compensation accounting principles and reflect the accounting value on the grant date. The PRSU values in the Summary Compensation Table reflect a Monte Carlo simulation valuation model performed as of the date of