Anti-Hedging Policy and Trading Restrictions
Cadences Securities Trading Policy restricts certain transactions in Cadence securities and prohibits Cadences directors, executive officers and all other
Cadence employees (and their respective family and household members) from hedging their ownership of Cadence securities (regardless of whether such securities were granted as compensation or are otherwise held, directly or indirectly, by such
employee or director), including by purchasing financial instruments such as prepaid variable forward contracts, equity swaps, collars and exchange funds, or trading in publicly-traded options, puts, calls or other derivative instruments related to
Cadence securities. Cadences Securities Trading Policy also prohibits short-sales and similar transactions, and requires pre-approval by Cadence of pledges of Cadence stock or deposits of Cadence stock
in margin accounts. None of Cadences executive officers currently or in the last fiscal year has pledged any Cadence common stock under this policy.
CORPORATE SOCIAL RESPONSIBILITY
Cadences commitment to corporate social
responsibility and its environmental, social and governance (ESG) initiatives create value for the company and all of its stakeholders. Especially during these unprecedented times, Cadence has made the health and well-being of our
employees our top priority. Their resilience has enabled us to continue to grow our business, deliver strong financial results, and advance sustainability efforts that benefit our customers, investors, and communities throughout the past year
despite operational challenges caused by COVID-19. We believe that as a global leader in electronic design whose offerings enable the worlds most innovative companies to bring to market products that
transform the way people live, work, and play, Cadence has an opportunity and a responsibility to be an organization that positively impacts society. As we work towards this goal, Cadence is committed to building ethical and sustainable business
operations and supply chains, and maintaining governance structures that are in line with the best practices of our peers.
COVID-19 Response and Action
Cadence
has a people-first philosophy that shapes our company culture and drives how we run our business. When faced with the unprecedented challenges presented by the COVID-19 pandemic, we adapted rapidly to promote
the safety, health, and well-being of our employees, customers, vendors and our broader communities. Cadence made contributions to several COVID-19 funds, purchased and donated thousands of masks to hospitals
in areas of the United States in greatest need of personal protective equipment, and doubled our employee donation match limits in 2020.
The vast majority of our
employees have worked from home since March 2020. We provided employees with additional time off to focus on themselves and their families and provided cash stipends to assist with telecommuting expenses and to enhance employees home working
environment. Additionally, we enhanced our global employee assistance programs to connect employees and their families with resources, information, and counseling to address the evolving challenges presented by the pandemic, such as increased
anxiety or stress.
Diversity and Inclusion
Embracing diversity and
fostering inclusion are key tenets of our One CadenceOne Team culture. We believe diversity plays a crucial role in bringing strengths and talents to the workplace, leading to broad and creative thinking and, ultimately, innovation. We
recognize that gender and racial disparities remain a challenge in our industry and Cadence is deeply committed to addressing this issue. Our key programs and initiatives, which are described in more detail in our 2020 Sustainability Report located
at www.cadence.com, are focused on improving diversity in our hiring pipeline, increasing recruiting and engagement efforts in underrepresented communities, providing career support for top women, Black and Latinx talent, maintaining pay equity
among our employees, raising awareness of unconscious biases in management, and nurturing an inclusive community. For example, we partner with organizations such as the National Society of Black Engineers, Society of Hispanic Professional Engineers,
Out in Tech, and Society of Women Engineers and provide scholarships to women and Black and Latinx students in technology to promote a broad and diverse candidate pool. Cadence also provides diverse top talent with specialized coaching, mentorship
and other career support. We work hard to build an inclusive workplace community for all of our employees, including sponsoring inclusion groups for Black, Latinx, LGBTQ+, veterans, and women employees in the United States to foster dialogue and
promote awareness, and providing unconscious bias training to our managers globally.