DEF 14A

Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934

 Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

 Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.

You are cordially invited to attend the 2023 Annual Meeting of Stockholders, or the Annual Meeting, of Arcus Biosciences, Inc., a Delaware corporation (“Arcus”). The Annual Meeting will be held on Thursday, June 15, 2023, at 8:30 a.m. Pacific Time. The Annual Meeting will be a completely virtual meeting of stockholders, which will be conducted via live webcast. You will be able to attend the virtual Annual Meeting and submit your questions and vote your shares online during the meeting by visiting www.virtualshareholdermeeting.com/RCUS2023 and using your 16-digit control number to enter the virtual Annual Meeting. The stockholder list and instructions on how stockholders of record can view the stockholder list will also be available during the Annual Meeting at www.virtualshareholdermeeting.com/RCUS2023. In addition, the stockholder list will be available for examination for any purpose germane to the Annual Meeting during normal business hours for ten days prior to the Annual Meeting at our corporate headquarters. The Annual Meeting will be held for the following purposes:

These items of business are more fully described in the Proxy Statement accompanying this Notice.

The record date for the Annual Meeting is April 18, 2023. Only stockholders of record at the close of business on that date may vote at the meeting or any adjournment thereof.

Important Notice Regarding the Availability of Proxy Materials for the Stockholders’ Meeting to Be Held Virtually on Thursday, June 15, 2023.

You are cordially invited to attend our Annual Meeting virtually via live webcast at www.virtualshareholdermeeting.com/RCUS2023. Whether or not you expect to attend the meeting, please vote as soon as possible. You may vote over the Internet or by a toll-free telephone number. If, however, you requested to receive paper proxy materials, then you may vote by mailing a completed, signed and dated proxy card or voting instruction card in the envelope provided with the proxy card or voting instruction card. Please note that any stockholder attending the virtual Annual Meeting that has received a 16-digit control number with their proxy materials may vote online during the meeting, even if the stockholder has already returned a proxy card or voting instruction card. Please see the instructions in the attached proxy statement and on your proxy card or voting instruction card, or on your Notice of Internet Availability of Proxy Materials.

To be held virtually at www.virtualshareholdermeeting.com/RCUS2023
on Thursday, June 15, 2023 at 8:30 am Pacific

This proxy statement and our Annual Report are available on our website at www.proxyvote.com. We intend to mail the Notice of Internet Availability of Proxy Materials on or about April 24, 2023 to all stockholders of record entitled to vote at the Annual Meeting.

Why did I receive a notice regarding the availability of proxy materials on the internet?

Pursuant to rules adopted by the Securities and Exchange Commission (the “SEC”), we have elected to provide access to our proxy materials over the internet. Accordingly, we have sent you a Notice of Internet Availability of Proxy Materials (the “Notice”) because the Board of Directors (sometimes referred to as the “Board”) of Arcus Biosciences, Inc. is soliciting your proxy to vote at the 2023 Annual Meeting of Stockholders (the "Annual Meeting"), including at any adjournments or postponements of the meeting. All stockholders will have the ability to access the proxy materials on the website referred to in the Notice or request to receive a printed set of the proxy materials. Instructions on how to access the proxy materials over the internet or to request a printed copy may be found in the Notice.

We intend to mail the Notice on or about April 24, 2023 to all stockholders of record entitled to vote at the Annual Meeting.

We may send you a proxy card, along with a second Notice, on or after May 4, 2023.

We will be hosting the Annual Meeting only by means of a live audio webcast. There will not be a physical meeting location and you will not be able to attend the meeting in person physically. The live audio webcast will be held on Thursday, June 15, 2023, and will begin promptly at 8:30 a.m. local time. Online check-in will begin approximately 15 minutes prior to the start of the Annual Meeting. We encourage our stockholders to access the meeting in advance of the designated start time to have ample time for check-in procedures. To attend the Annual Meeting virtually via the internet, please visit www.virtualshareholdermeeting.com/RCUS2023. You will need the 16-digit control number included in the Notice, on the proxy card or on the voting instruction card.

The Annual Meeting will be conducted via a live audio webcast and online shareholder tools. We have implemented the virtual format in order to provide a safe experience for our stockholders and other meeting participants, which will facilitate stockholder attendance and participation from any location around the world, at no cost. However, you will bear any costs associated with your internet access, such as usage charges from internet access providers and telephone companies. A virtual annual meeting also makes it possible for more stockholders (regardless of size, resources or physical location) to have direct access to information more quickly, while saving our stockholders time and money. We also believe that the online tools we have selected will increase stockholder communication. For example, the virtual format allows stockholders to communicate with us in advance of, and during, the Annual Meeting so they can ask us questions.

Stockholders of record and beneficial owners at the close of business on April 18, 2023 (the "record date"), will be able to vote their shares electronically during the Annual Meeting by using the 16-digit control number they should

have received with their proxy materials. Instructions on how to vote while participating in the Annual Meeting live via the Internet are posted at www.virtualshareholdermeeting.com/RCUS2023. On this record date, there were 73,077,898 shares of common stock outstanding and entitled to vote.

If you do not have your 16-digit control number, you will be able to access and listen to the Annual Meeting, but you will not be able to vote your shares or submit questions during the Annual Meeting. See caption below titled “Attending the Annual Meeting as a Guest.”

If on the record date, any of your shares were registered directly in your name with Arcus’s transfer agent, Computershare Trust Company, N.A., then you are the stockholder of record for such shares. As a stockholder of record, you may vote such shares online at the meeting or vote by proxy. Whether or not you plan to attend the meeting, we urge you to vote by proxy to ensure your vote is counted.

If on the record date, any of your shares were held, not in your name, but rather in an account at a brokerage firm, bank or other similar organization, then you are the beneficial owner of shares held in “street name” and the Notice will be forwarded to you by that organization. The organization holding your account is considered to be the stockholder of record for purposes of voting such shares at the Annual Meeting. As a beneficial owner, you have the right to direct your broker, bank or other agent regarding how to vote the shares in your account. You are also invited to attend the virtual Annual Meeting. Beneficial stockholders as of the record date who want to be able to attend and vote such shares at the Annual Meeting can attend using the 16-digit control number found on the notice and instructions received from their broker or other nominee. Beneficial stockholders as of the record date who have not received a 16-digit control number should contact their broker or other nominee for instructions on how to vote.

Guests may enter the Annual Meeting in “listen-only” mode by entering the Annual Meeting at www.virtualshareholdermeeting.com/RCUS2023 and entering the information requested in the “Guest Login” section. Guests will not have the ability to vote at the Annual Meeting.

If you are attending the Annual Meeting as a stockholder of record or as a beneficial owner, questions can be submitted by accessing the meeting center at www.virtualshareholdermeeting.com/RCUS2023, entering your 16-digit control number and following the instructions. Instructions on how to ask questions and participate in the Annual Meeting are posted at www.virtualshareholdermeeting.com/RCUS2023. Guests will not have the ability to ask questions during the Annual Meeting.

A list of stockholders entitled to vote at the Annual Meeting will be available for examination for any purpose germane to the Annual Meeting during normal business hours for ten days prior to the Annual Meeting at our corporate headquarters. Please email us at investorinfo@arcusbio.com to arrange a time to review. The stockholder list will also be available during the Annual Meeting at www.virtualshareholdermeeting.com/RCUS2023. Instructions on how stockholders of record can view the stockholder list during the Annual Meeting are posted at www.virtualshareholdermeeting.com/RCUS2023.

The Board of Directors knows of no other matters that will be presented for consideration at the Annual Meeting. If any other matters are properly brought before the meeting, it is the intention of the persons named in the accompanying proxy to vote, to the extent permitted by SEC rules, on those matters in accordance with their best judgment.

You may either vote “For” all of the nominees to the Board of Directors or you may “Withhold” your vote for any nominee you specify. For the ratification of appointment by the Audit Committee of the Board of Directors of Ernst & Young LLP as the independent registered public accounting firm of Arcus for its fiscal year ending December 31, 2023, you may vote “For” or “Against” or abstain from voting. For the approval, on an advisory basis, of the compensation of Arcus’s named executive officers, you may vote “For” or “Against” or abstain from voting.

If you are a stockholder of record, you may vote online at the Annual Meeting, vote by proxy over the telephone, vote by proxy through the internet, or vote by proxy using a proxy card that you may request or that we may elect to deliver at a later time. Whether or not you plan to attend the meeting, we urge you to vote by proxy to ensure your vote is counted. You may still attend the meeting and vote online even if you have already voted by proxy.

If you are a beneficial owner of shares registered in the name of your broker, bank or other agent, you should have received a Notice or voting instruction card containing voting instructions from that organization rather than from Arcus. Simply follow the voting instructions in the Notice or voting instruction card to ensure that your vote is counted. To vote online at the virtual Annual Meeting, you can do so using the 16-digit control number found on the notice and instructions received from your broker or other agent. Beneficial stockholders as of the record date who have not received a 16-digit control number should contact their broker or other nominee for instructions on how to vote. Whether or not you plan to attend the virtual Annual Meeting, please vote by proxy as directed in your Notice or voting instruction card as soon as possible to ensure your vote is counted. You may still attend the virtual Annual Meeting and vote online during the meeting even if you have already voted by proxy.

Internet proxy voting may be provided to allow you to vote your shares online, with procedures designed to ensure the authenticity and correctness of your proxy vote instructions. However, please be aware that you must bear any costs associated with your internet access, such as usage charges from internet access providers and telephone companies.

No. The Notice will, however, provide instructions on how to vote by telephone, by Internet, by requesting and returning a paper proxy card or voting instruction card, or by voting online at the virtual Annual Meeting.

On each matter to be voted upon, you have one vote for each share of common stock you own as of the record date.

If I am a stockholder of record and I do not vote, or if I return a proxy card or otherwise vote without giving specific voting instructions, what happens?

If you are a stockholder of record and do not vote by completing your proxy card by telephone, through the internet or online at the virtual Annual Meeting, your shares will not be voted.

If you return a signed and dated proxy card or otherwise vote without marking voting selections, your shares will be voted, as applicable, “For” the election of all nominees for Class II director (Proposal 1), “For” the ratification of the independent registered public accounting firm (Proposal 2), and “For” the approval, on an advisory basis, of the compensation of our named executive officers (Proposal 3). If any other matter is properly presented at the meeting, your proxyholder (one of the individuals named on your proxy card) will vote your shares, to the extent permitted by SEC rules, using his or her best judgment.

If I am a beneficial owner of shares held in street name and I do not provide my broker or bank with voting instructions, may my broker or bank vote my shares?

If you are a beneficial owner of shares held in street name and you do not instruct your broker, bank or other agent how to vote your shares, your broker, bank or other agent may still be able to vote your shares in its discretion. In this regard, under the rules of the New York Stock Exchange (NYSE), brokers, banks and other securities intermediaries that are subject to NYSE rules may use their discretion to vote your “uninstructed” shares with respect to matters considered to be “routine” under NYSE rules, but not with respect to “non-routine” matters. In this regard, Proposals 1 and 3 are considered to be “non-routine” under NYSE rules meaning that your broker may not vote your shares on those proposals in the absence of your voting instructions. However, Proposal 2 is considered to be a “routine” matter under NYSE rules meaning that if you do not return voting instructions to your broker by its deadline, your shares may be voted by your broker in its discretion on Proposal 2. However, if you attend the Annual Meeting using your 16-digit control number and vote your shares, then your vote will override any vote of your shares by your broker, bank or other agent.

We will pay for the entire cost of soliciting proxies. In addition to these proxy materials, our directors and employees may also solicit proxies in person, by telephone, or by other means of communication. Directors and employees will not be paid any additional compensation for soliciting proxies. We may also reimburse brokerage firms, banks and other agents for the cost of forwarding proxy materials to beneficial owners.

If you receive more than one Notice, your shares may be registered in more than one name or in different accounts. Please follow the voting instructions on the Notices to ensure that all of your shares are voted.

Yes. You can revoke your proxy at any time before the final vote at the meeting. If you are the record holder of your shares, you may revoke your proxy in any one of the following ways:

Your most current proxy card or telephone or internet proxy is the one that is counted.

If your shares are held by your broker, bank or other agent, you should follow the instructions provided by your broker, bank or other agent, or if you have your 16-digit control number you may attend the virtual Annual Meeting and vote online. Simply attending the meeting will not, by itself, revoke your proxy.

When are stockholder proposals and director nominations due for next year’s Annual Meeting?

If you wish to submit a proposal to be considered for inclusion in the proxy materials we prepare for next year’s annual meeting, your proposal must be submitted in writing by December 26, 2023, to Arcus Biosciences, Inc., 3928 Point Eden Way Hayward, CA 94545, Attention: Secretary. However, if our 2023 annual meeting of stockholders is held before May 16, 2024, or after July 15, 2024, then your proposal must be received a reasonable time before we print and mail our proxy statement for the 2024 annual meeting of stockholders.

If you wish to submit a proposal (including a director nomination) at the meeting that is not to be included in next year’s proxy materials, you must do so no earlier than February 16, 2024, and no later than March 17, 2024, to Arcus Biosciences, Inc., 3928 Point Eden Way Hayward, CA 94545, Attention: Secretary. If such proposal is submitted after March 17, 2024 or before February 16, 2024, it will be considered untimely; provided, however, that if our 2024 annual meeting of Stockholders is held before May 16, 2024, or after August 14, 2024, then your proposal must be received no earlier than 120 days prior to such annual meeting and not later than the close of business on the later of (a) the 90th day prior to such meeting and (b) the 10th day following the day on which notice of the date of the 2024 annual meeting of Stockholders is mailed or public disclosure is made, whichever occurs first. You are also advised to review our bylaws, which contain a description of the information required to be submitted as well as additional requirements about advance notice of stockholder proposals and director nominations.

In addition, to comply with the universal proxy rules, stockholders who intend to solicit proxies in support of director nominees other than our nominees must provide notice that sets forth the information required by Rule 14a-19 under the Exchange Act no later than April 14, 2024; provided, however, that, in the event that the annual meeting is held before May 16, 2024, or after July 15, 2024, for your notice to be timely, it must be so received by the Secretary not earlier than the close of business on the date the later of sixty (60) days prior to such annual meeting and the tenth (10th) day following the day on which public announcement of the date of such meeting is first made by us.

Please refer to our bylaws Rule 14a-19 under the Exchange Act for additional information and requirements regarding stockholder proposals and director nominations. We will not consider any proposal or nomination that is not timely or otherwise does not meet our bylaws and the SEC’s requirements for submitting a proposal or nomination, as applicable. We reserve the right to reject, rule out of order or take other appropriate action with respect to any proposal or nomination that does not comply with these and any other applicable requirements.

Votes will be counted by the inspector of election appointed for the meeting, who will separately count, for Proposal 1 to elect the Class II directors, votes “For,” “Withhold” and broker non-votes, and with respect to Proposals 2 and 3, votes “For”, “Against,” abstentions and, if applicable, broker non-votes.

As discussed above, when a beneficial owner of shares held in street name does not give voting instructions to his or her broker, bank or other securities intermediary holding his or her shares as to how to vote on matters deemed to be “non-routine under NYSE rules, the broker, bank or other such agent cannot vote the shares. Even when such matters are deemed “routine,” the broker, bank or other such agent may choose not to exercise its discretionary power to vote such shares. These un-voted shares are counted as “broker non-votes.” Proposals 1 and 3 are considered to be “non-routine” under NYSE rules and we therefore expect broker non-votes to exist in connection with those proposals.

For Proposal 1, the election of Class II directors, the four nominees receiving the most “For” votes from the holders of shares present or represented by proxy and entitled to vote on the election of the Class II director will be elected. Only votes “For” will affect the outcome. “Withheld” and broker non-votes will have no effect.

To be approved, Proposal 2, ratification of the selection of Ernst & Young LLP as Arcus’s independent registered public accounting firm for fiscal year ending December 31, 2023, must receive “For” votes from the holders of a majority of shares present or represented by proxy and cast at the meeting. Only votes “For” or “Against” will affect the outcome. Abstentions and broker non-votes will have no effect. We do not expect any broker non-votes on Proposal 3.

To be approved, Proposal 3, approval of the compensation of our named executive officers, must receive “For” votes from the holders of a majority of shares present or represented by proxy and cast at the meeting. Only votes “For” or “Against” will affect the outcome. Abstentions and broker non-votes will have no effect.

A quorum of stockholders is necessary to hold a valid meeting. A quorum will be present if the holders of at least a majority of the outstanding shares entitled to vote are present virtually at the virtual meeting, or represented by proxy. On the record date, there were 73,077,898 shares outstanding and entitled to vote. Thus, the holders of 36,538,950 shares must be present at the virtual meeting or represented by proxy at the virtual meeting to have a quorum.

Your shares will be counted towards the quorum only if you submit a valid proxy (or one is submitted on your behalf by your broker, bank or other nominee) or if you vote online at the virtual meeting. If there is no quorum, the chairman of the meeting or the holders of a majority of shares present at the virtual meeting or represented by proxy may adjourn the meeting to another date.

Preliminary voting results will be announced at the Annual Meeting. In addition, final voting results will be published in a current report on Form 8-K that we expect to file within four business days after the Annual Meeting. If final voting results are not available to us in time to file a Form 8-K within four business days after the meeting, we intend to file a Form 8‑K to publish preliminary results and, within four business days after the final results are known to us, file an additional Form 8-K to publish the final results.

Arcus’s Board of Directors is divided into three classes, and each class has a three-year term. The terms of the Class II directors expire at the Annual Meeting, the terms of the Class III directors expire at the 2024 annual meeting of stockholders and the terms of the Class I directors expire at the 2025 annual meeting of stockholders. Vacancies on the Board may be filled only by persons appointed by a majority of the remaining directors. A director appointed by the Board to fill a vacancy in a class, including vacancies created by an increase in the number of directors, shall serve for the remainder of the full term of that class and until the director’s successor is duly elected and qualified.

There are four Class II directors whose terms of office expire at the Annual Meeting. If elected at the Annual Meeting, each of the nominees would serve as Class II directors until the 2026 annual meeting and until his or her successor has been duly elected and qualified, or, if sooner, until his or her death, resignation or removal. Dr. Jaen was previously elected by our stockholders. Dr. Lacey was recommended for appointment to our Board of Directors by our chief executive officer, Ms. Lambert was recommended for appointment to our Board of Directors by a third-party search firm, and Dr. Parsey was recommended for appointment to our Board of Directors by Gilead, in connection with their rights under the Investor Rights Agreement that we entered into with them. Dr. Lacey, Ms. Lambert and Dr. Parsey were appointed to our Board of Directors in June 2020, August 2021 and July 2020, respectively. We invite and encourage our directors and nominees for director to attend the Annual Meeting, but have no formal policy regarding their attendance at our annual meetings. Eleven of our directors at the time attended the 2022 annual meeting of stockholders.

Directors are elected by a plurality of the votes of the holders of shares present or represented by proxy and entitled to vote on the election of directors. Accordingly, the four nominees receiving the highest number of affirmative votes will be elected. Shares represented by executed proxies will be voted, if authority to do so is not withheld, for the four nominees named below. If any nominee becomes unavailable for election as a result of an unexpected occurrence, your shares will be voted for the election of a substitute nominee proposed by Arcus. Each nominee has agreed to serve if elected. Arcus’ management has no reason to believe that any nominee will be unable to serve.

The following table sets forth information regarding our directors as of April 1, 2023:

The following is a brief biography of each nominee and each director whose term will continue after the Annual Meeting.

Nominees for Election as Class II Directors at the Annual Meeting for a Three-Year Term

David Lacey, M.D. has served as a member of our Board since May 2020. From 1994 until his retirement in 2011, Dr. Lacey held various positions at Amgen Inc. (Nasdaq: AMGN), including Senior Vice President of Discovery Research. By the end of his tenure, he oversaw a research organization of approximately 1200 encompassing four broad therapeutic areas: Inflammation, Oncology, Metabolic Disorders and Neurosciences that utilized both large and small molecules to interdict validated targets across these focus areas. Kepivance, Prolia, Xgeva, and Repatha were among a number of drugs that emerged from Amgen laboratories while under his supervision. Since July 2011, Dr. Lacey has provided services as a biopharmaceutical consultant to a number of private companies, academic institutions and venture capital firms through his company, David L. Lacey LLC. He currently serves on the Board of Directors of Atreca, Inc. (Nasdaq: BCEL), Inbiomotion SL, and Nurix, Inc. (Nasdaq: NRIX), and previously served on the Board of Directors of Argenx SE (Nasdaq: ARGX) from July 2014 until May 2021 and UNITY Biotechnology, Inc. (Nasdaq: UBX) from February 2018 to December 2020. He obtained both his B.A. in Biology and M.D. from the University of Colorado and received his formal training in Anatomic Pathology at Washington University in St. Louis, Missouri. We believe Dr. Lacey is able to make valuable contributions to our Board of Directors due to his extensive experience in drug discovery and management of large research organizations.

Juan Carlos Jaen, Ph.D. is our co-founder and has served as our President since May 2015 and as a member of our Board since April 2015. Previously, Dr. Jaen co-founded (with Dr. Rosen) and served as the President and Head of Research and Development at Flexus Biosciences, Inc. from October 2013 to April 2015, when it was acquired by Bristol-Myers Squibb. Prior to that, Dr. Jaen served as Senior Vice President of Drug Discovery and as the Chief Scientific Officer of ChemoCentryx, Inc., a biopharmaceutical company, from 2007 to September 2013. From 2004 to 2006, Dr. Jaen was Vice President of Chemistry at Amgen Inc. (Nasdaq: AMGN) and from 1996 to 2004, Dr. Jaen held positions as Director of Medicinal Chemistry and Vice President of Chemistry at Tularik, Inc. Prior to that, Dr. Jaen held several positions in drug discovery and program management, from 1983 to 1996, at the Parke-Davis Pharmaceutical Research division of Warner-Lambert Company, a pharmaceutical company. Dr. Jaen also serves on the board of directors of the Bella Charitable Foundation, Breakpoint Therapeutics GmbH, Hexagon Bio, Inc., R2M Pharma, Inc. and Shasqi, Inc. Dr. Jaen previously served on the Board of Directors of PACT Pharma, Inc. from October 2016 until October 2022. Dr. Jaen holds a B.S. in Chemistry from the Universidad Complutense de Madrid and a Ph.D. in Organic Chemistry from the University of Michigan. We believe that Dr. Jaen should serve as a director based on his position as one of our founders and as our President, his extensive experience in general management and business development and his experience in the field of biomedical research.

Merdad Parsey, M.D., Ph.D. has served as a member of our Board since July 2020. Dr. Parsey is currently the Chief Medical Officer of Gilead Sciences, Inc. (Nasdaq: GILD), a biopharmaceutical company, where he is responsible for overseeing Gilead’s global clinical development and medical affairs organizations, a role he has held since November 2019. From October 2015 to November 2019, Dr. Parsey served as Senior Vice President of Early Clinical Development at Genentech, Inc., a biotechnology company, where he led clinical development for areas including inflammation, oncology and infectious diseases. Prior to Genentech, Dr. Parsey served as President and CEO of 3-V Biosciences Inc. (now Sagimet BioSciences Inc.) from September 2006 to October 2015. Prior to Sagimet BioSciences, Dr. Parsey held development roles at Sunovion Pharmaceuticals Inc. (f.k.a. Sepracor, Inc.) from 2004 to 2006, Regeneron Pharmaceuticals, Inc. (Nasdaq: REGN) from 2002 to 2004 and Merck & Co., Inc. (NYSE: MRK) from 1998 to 2000, and was Assistant Professor of Medicine and Director of Critical Care Medicine at the New York University School of Medicine from 2000 to 2002. Dr. Parsey completed his M.D. and Ph.D. at the University of Maryland, Baltimore, his residency in Internal Medicine at Stanford University and his fellowship in Pulmonary and Critical Care Medicine at the University of Colorado. He currently also serves on the Board of Directors for Sagimet BioSciences. Dr. Parsey was selected to be appointed to Arcus’s Board of Directors pursuant to the investor rights

agreement between Arcus and Gilead and we believe he is able to make valuable contributions to our Board of Directors due to his extensive clinical development experience.

Nicole Lambert has served as a member of our Board since August 2021. Ms. Lambert has served as the Chief Operating Officer of Myriad Genetics, Inc. (Nasdaq: MYGN), a genetic testing and precision medicine company, since December 2021, where she is responsible for accelerating the company’s transformation and growth plans, elevating products to their full potential, and implementing operational efficiencies to better serve patients and healthcare providers. Ms. Lambert served in various roles since joining Myriad Genetics in 2001 including Group President of Myriad Oncology, Myriad Women’s Health and Myriad International from March 2019 until December 2021, General Manager for Myriad Genetics' Oncology business from July 2018 to February 2019, and General Manager for its Urology business unit from June 2015 to June 2018. Prior to Myriad Genetics, she was a genetic councilor at Laboratory Corporation of America Holdings from February 2000 to May 2001. Ms. Lambert received her bachelor's degree in Biology and Sociology from Boston College and her master’s degree in Genetic Counseling from Mt. Sinai School of Medicine at New York University. We believe Ms. Lambert is able to make valuable contributions to our Board of Directors due to her extensive commercial experience.

Jennifer Jarrett has served as our Chief Operating Officer since October 2020 and as a member of our Board since January 2019. Ms. Jarrett served as Vice President, Corporate Development and Capital Markets at Uber, Inc. (NYSE: UBER), a technology company providing a platform for mobility, delivery and freight services, from January 2019 to October 2020 and prior to that, served as our Chief Operating and Financial Officer from June 2018 to January 2019, and as our Chief Business Officer and Chief Financial Officer from March 2017 to June 2018. From April 2016 to September 2016, Ms. Jarrett was the Chief Financial Officer of Medivation, Inc., a biopharmaceutical company, which was acquired by Pfizer Inc. Prior to that, Ms. Jarrett spent 20 years in investment banking, most recently as Managing Director at Citigroup from July 2010 to April 2016, where she was responsible for managing their west coast life sciences investment banking practice. Before that, Ms. Jarrett was a Director and Managing Director at Credit Suisse from 2000 to 2010, and an associate at Donaldson, Lufkin & Jenrette from 1998 to 2000. During her tenure as an investment banker, Ms. Jarrett covered biotechnology and pharmaceutical companies, primarily in the San Francisco Bay Area. She currently serves on the board of directors of Syndax Pharmaceuticals, Inc. (Nasdaq: SNDX), Zura Bio Ltd (Nasdaq: ZURA) and LifeMine Therapeutics and previously served on the boards of Arena Pharmaceuticals, Inc. from July 2017 until its acquisition by Pfizer in March 2022, Audentes Therapeutics from July 2017 until its acquisition by Astellas Pharma Inc. in January 2020, Radius Health, Inc. from May 2022 until its acquisition by Gurnet Point Capital and Patient Square Capital in August 2022 and Consonance-HFW Acquisition Corp. from December 2020 until its business combination with Surrozen Operating, Inc. in August 2021. Ms. Jarrett holds a B.A. in Economics, cum laude, from Dartmouth College and an M.B.A. from Stanford Graduate School of Business. We believe that Ms. Jarrett should serve as a director due to her extensive business experience in the pharmaceutical industry, her deep operational knowledge of the company and her service as a director of various other biopharmaceutical companies.

Kathryn Falberg has served as a member of our Board since September 2017. She served as the Executive Vice President and Chief Financial Officer of Jazz Pharmaceuticals plc (Nasdaq: JAZZ), a biopharmaceutical company, from March 2012 to March 2014, after serving as its Senior Vice President and Chief Financial Officer since December 2009. From 2001 through 2009, Ms. Falberg worked with a number of smaller companies while serving as a corporate director and audit committee chair for several companies. From 1995 to 2001, Ms. Falberg was with Amgen, Inc. (Nasdaq: AMGN), where she served in various roles including Senior Vice President, Finance and Strategy, Chief Financial Officer, Vice President, Chief Accounting Officer, and Vice President, Treasurer. Ms. Falberg also serves as a member of the boards of directors, and on the audit committees, of biopharmaceutical companies Nuvation Bio Inc. (NYSE: NUVB) and Tricida Inc. (Nasdaq: TCDA), and is a member of the board of directors of The Trade Desk, Inc. (Nasdaq: TTD), a technology company. Ms. Falberg has previously served on the boards of directors of multiple companies including Urogen Pharma Ltd. (Nasdaq: URGN), from May 2015 until June 2022, Aimmune Therapeutics, Inc. from May 2015 until its acquisition by Nestlé S.A. in October 2020, Sio Gene Therapies Inc. (f.k.a, Axovant Sciences, Ltd.) (Nasdaq: SIOX) from April 2017 until February 2018, BioMarin Pharmaceutical Inc. (Nasdaq: BMRN) from July 2016 until June 2017, aTyr Pharma, Inc. (Nasdaq: LIFE) from July 2014 until May 2017, Medivation, Inc. from January 2013 until its acquisition by Pfizer Inc. in September 2016 and Halozyme Therapeutics, Inc. (Nasdaq: HALO) from May 2007 until May 2016. Ms. Falberg holds an M.B.A. in Finance and B.A. in Economics from the University of California, Los Angeles and is an inactive certified public accountant. We believe Ms. Falberg

is able to make valuable contributions to our Board of Directors due to her extensive business experience as an executive in the pharmaceutical industry and her service as a director and audit committee member of various other companies.

Linda Higgins, Ph.D. has served as a member of our Board since August 2021. Dr. Higgins is currently the Senior Vice President Research, Strategy, Innovation and Portfolio at Gilead Sciences, Inc. (Nasdaq: GILD). Dr. Higgins joined Gilead in December 2010 and in her first nine years led its Biology group, leading a significant expansion of the therapeutic area scope and capabilities of the department. Prior to joining Gilead, Dr. Higgins previously served as the President & CEO of InteKrin Therapeutics from April 2007 until November 2010 and as Head of Research at Scios, Inc., a Johnson & Johnson company, from September 1991 until March 2007, where she provided leadership for drug discovery, preclinical development, and translational medicine. Dr. Higgins obtained her B.A. degree in Behavioral Physiology from Kenyon College and her Ph.D. in Neuroscience from the University of California, San Diego School of Medicine and conducted her post-doctoral research in Molecular Genetics at the Howard Hughes Medical Institute at the University of California, Berkeley. Dr. Higgins currently serves on the Supervisory Board of Galapagos NV (Nasdaq: GLPG) and the Board of Directors of Tizona Therapeutics. Dr. Higgins was selected to be appointed to Arcus’s Board of Directors pursuant to the investor rights agreement between Arcus and Gilead and we believe she is able to make valuable contributions to our Board of Directors due to her extensive research and business experience.

Terry Rosen, Ph.D. is our co-founder and has served as the Chairman of our Board of Directors since December 2017, our Chief Executive Officer since May 2015 and as a member of our Board since April 2015. Previously, Dr. Rosen co-founded (with Dr. Jaen) and served as the Chief Executive Officer of Flexus Biosciences, Inc. from October 2013 to April 2015, when it was acquired by Bristol-Myers Squibb. Prior to that, Dr. Rosen was at Amgen, Inc. (Nasdaq: AMGN), a biopharmaceutical company, from 2004 to January 2013 where he most recently served as Vice President of Therapeutic Discovery from 2011 to January 2013. He also worked at Tularik Inc., a biopharmaceutical company, from 1993 to 2004 when it was acquired by Amgen, Inc., Pfizer Central Research, a division of Pfizer Inc. (NYSE: PFE), a biopharmaceutical company, from 1987 to 1993, and Abbott Laboratories (NYSE: ABT), a health care company, from 1985 to 1987. Dr. Rosen serves on the Berkeley Board of Visitors and on the board of trustees of the Berkeley Foundation, the California Life Sciences Association, and the Salk Institute. He also serves on the boards of Epiodyne, Inc., Ideaya Biosciences, Inc. (Nasdaq: IDYA), PACT Pharma, Inc., Simcha Therapeutics Holding Company, LLC and Sonoma Biotherapeutics, Inc. Dr. Rosen holds a B.S. in Chemistry from the University of Michigan and a Ph.D. in Chemistry from the University of California, Berkeley. We believe that Dr. Rosen should serve as a director based on his position as one of our founders and as our Chief Executive Officer, his extensive experience in general management and business development and his experience in the field of biosciences.

Andrew Perlman, M.D., Ph.D. has served as a member of our Board since December 2020. Dr. Perlman has also served as the Managing Director and Head of non-clinical Development of X-37, LLC, an artificial intelligence-enabled drug discovery, since November 2018. He is also Managing Director and Chief Medical Officer of Velocity Pharmaceutical Development LLC, a pharmaceutical company that acquires attractive drug candidates and rapidly advances them through a commercially relevant clinical proof-of-concept, a position he has held since 2011. Dr. Perlman previously served as President of Vitesse Biologics, LLC, a biotech company focused on the development of antibody and protein-based therapeutics in the areas of immunology, hematology, and oncology, which was a joint collaboration among Velocity Pharmaceutical Development LLC, Shire plc and the Mayo Clinic, from May 2015 until its acquisition in December 2020. From 2004 to October 2016, Dr. Perlman was CEO at Innate Immune Inc., a biotech company focused on developing therapies for asthma and autoimmune diseases. From 1993 to 2004, Dr. Perlman served as Vice President and then Executive Vice President of Tularik Inc. (acquired by Amgen Inc.), except for nine months in 2002 when he served as CEO of Affymax Inc. At Tularik Inc., Dr, Perlman’s responsibilities included clinical trial design and implementation, business development and financing activities, culminating with Tularik Inc.'s acquisition by Amgen Inc. in 2004. Dr. Perlman began his notable career in drug development at Genentech, Inc., where he played a key role in the development, FDA approval, and marketing of Nutropin, a human growth hormone, and was responsible for the development of Genentech’s portfolio of endocrine drugs and drug candidates. Dr. Perlman also serves as an advisor to various companies, including venture capital firms Eight Partners LLC, Avestria Ventures Management LLC and V2M Capital LLC, and biotechnology companies Hexagon Bio, Inc., Hinge Bio, Inc., Mantra Bio, Inc. and Shasqi, Inc. Dr. Perlman has a B.S. in Physics from MIT and an M.D. and Ph.D. in physiology from New York University. He did his Ph.D. research in the laboratory of Nobel laureate Professor Eric

Kandel and received postgraduate clinical training at Stanford School of Medicine and NYU. From 1984 to 1987 he was an assistant professor at Stanford University where he engaged in clinical work, teaching and research on hypertension. We believe Dr. Perlman is able to make valuable contributions to our Board of Directors due to his extensive business, finance and development experience in the biopharmaceutical industry.

Antoni Ribas, M.D., Ph.D. has served as a member of our Board since October 2019. Dr. Ribas has also served as a member of the Arcus Scientific Advisory Board since its creation in 2015. Dr. Ribas is an internationally recognized physician-scientist who conducts translational and clinical research aimed at understanding how the immune system can be used to treat cancer. He has been a leader in the research and clinical development of multiple types of therapeutic agents, including immune checkpoint inhibitors, gene-engineered T cells, and BRAF-targeted therapies. His efforts have been instrumental in transforming the treatment paradigm for oncology patients, particularly those with malignant melanoma, having served as principal investigator for multiple trials, including those involving the breakthrough cancer therapy, Keytruda®. Dr. Ribas has served as Professor of Medicine, Surgery, and Molecular and Medical Pharmacology at the University of California Los Angeles (UCLA) since July 2011, Director of the Tumor Immunology Program at the UCLA Jonsson Comprehensive Cancer Center since June 2010, and Director of the Parker Institute for Cancer Immunotherapy Center at UCLA since 2016. He was the President for the American Association for Cancer Research (AACR) from April 2020 to April 2021. Dr. Ribas has founded or advised several successful biopharma companies in addition to Arcus, such as Kite Pharma Inc. and Flexus Biosciences, Inc. Most recently, he co-founded PACT Pharma, Inc., a company developing personalized cancer neoantigen-targeted T cell therapies, together with Professors David Baltimore and Jim Heath and Arcus co-founders, Terry Rosen and Juan Jaen. Dr. Ribas received MD and Ph.D. degrees from the Universidad de Barcelona (Spain). He completed his internship and residency in medical oncology at the University Hospital Vall d’Hebron (Barcelona, Spain) and conducted postdoctoral research at UCLA. Following a fellowship in hematology/oncology in the Department of Medicine at UCLA, he has held numerous faculty and administrative positions at UCLA since 2001. Dr. Ribas has received a myriad of awards and honors, including the AACR-CRI Lloyd J. Old Award in Cancer Immunology, the AACR Richard and Hinda Rosenthal Award and the National Cancer Institute (NCI) Outstanding Investigator Award. Dr. Ribas has also served on the board of directors of leading scientific organizations such as the AACR and the Society for Immunotherapy for Cancer (SITC). We believe Dr. Ribas is able to make valuable contributions to our Board of Directors due to his extensive experience in medicine and clinical research.

Patrick Machado, J.D. has served as a member of our Board since December 2019. Mr. Machado has over two decades of experience growing biopharmaceutical organizations from development through commercialization. He has extensive operational experience, having led finance, business development and legal functions at multiple companies. Mr. Machado co-founded and served as Chief Financial Officer and Chief Business Officer at Medivation, Inc. from August 2003 until his retirement in April 2014 and served as a member of Medivation’s Board of Directors from April 2014 until its acquisition by Pfizer Inc. in September 2016. During his tenure at Medivation, Mr. Machado helped lead the company through substantial growth and challenges, providing strong leadership during the clinical development and successful commercial launch of XTANDI® in prostate cancer. Prior to Medivation, Mr. Machado worked at ProDuct Health, Inc. from 1998 until 2001 where he held positions as Chief Financial Officer, Senior Vice President of Business Development and General Counsel; Mr. Machado was also responsible for working with national health plans in the U.S. to expand access to patients in need of ductal lavage. Earlier in his career, Mr. Machado served as chief legal counsel to the Chiron Technologies business unit at Chiron Corporation from 1996 until 1998 and led the transaction teams for all substantial Chiron Technologies collaborations. Prior to joining Chiron, Mr. Machado worked for Morrison & Foerster LLP from 1990 until 1996, a leading international law firm, and for the Massachusetts Supreme Judicial Court from 1989 until 1990. Mr. Machado also serves as a member of the board of directors of Adverum Biotechnologies, Inc. (Nasdaq: ADVM), Chimerix, Inc. (Nasdaq: CMRX), and Xenon Pharmaceuticals. Mr. Machado previously served on the board of directors of Sio Gene Therapies Inc. (f.k.a. Axovant Sciences, Inc.) (Nasdaq: SIOX) from June 2017 until February 2018, Endocyte, Inc. from February 2018 until December 2018, Rocket Pharmaceuticals, Inc. (f.k.a. Inotek Pharmaceuticals Corporation) (Nasdaq: RCKT) from August 2016 until January 2018, Principia Biopharma Inc. from June 2019 until its acquisition by Sanofi S.A. in September 2020, Roivant Sciences Ltd. (Nasdaq: ROIV), SCYNEXIS, Inc. (Nasdaq: SCYX) from October 2016 until June 2022 and Turning Point Therapeutics, Inc. from May 2019 until its acquisition by Bristol-Myers Squibb Co. in September 2022. Mr. Machado received his J.D. degree from Harvard Law School and holds both a Bachelor of Science degree in Economics and a Bachelor of Arts degree in German from Santa Clara University in California. We believe Mr. Machado is able to make valuable contributions to our Board of Directors due to his extensive business experience as an executive in the pharmaceutical industry.

Yasunori Kaneko, M.D. has served as a member of our Board since May 2015. Dr. Kaneko was a Managing Director at Skyline Venture Partners, L.P., a venture capital firm, from January 1999 to January 2019. Dr. Kaneko previously served as Chief Financial Officer and Vice President, Business Development at Tularik, Inc., a biopharmaceutical company, at various times from 1992 until 1999. Dr. Kaneko served as a Senior Vice President and Chief Financial Officer of Ionis Pharmaceuticals, Inc. (Nasdaq: IONS), a pharmaceutical company, which went public in May 1991 during his tenure from 1991 to 1992. Dr. Kaneko began his career at Genentech, Inc., a biotechnology company, where he served in a business development role, from 1981 to 1987 and as head of corporate finance in the investment banking division of Paribas Capital Markets LTD, from 1987 to 1991. Dr. Kaneko is a member of the Stanford Interdisciplinary Life Sciences Council and serves on the board of Provigate Inc. Dr. Kaneko served on the board of Nippon Paint Holdings Co., Ltd. (TYO: 4612) from March 2018 to March 2020, and LeukoSite Inc., a biopharmaceutical company, from February 1998 until its merger with Millennium Pharmaceuticals, Inc. in December 1999. Dr. Kaneko received an undergraduate degree and a medical degree from Keio University in Tokyo, and an M.B.A. from Stanford Graduate School of Business. We believe Dr. Kaneko is able to make valuable contributions to our Board of Directors due to his educational background in medicine, as well as his experience in the life science, pharmaceutical and related financial industries.

While we do not have a formal policy with respect to diversity, our Board of Directors values overall diversity among members of our Board in order to provide us with a range of viewpoints. Of our twelve directors, four self-identify as female and five self-identify as being from an underrepresented community, meaning that they self-identify as Black, African American, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native or as lesbian, gay, bisexual or transgender.

As required under the New York Stock Exchange (“NYSE”) listing standards, a majority of the members of a listed company’s Board of Directors must qualify as “independent,” as affirmatively determined by the Board of Directors. The Board consults with Arcus’s counsel to ensure that the Board’s determinations are consistent with relevant securities and other laws and regulations regarding the definition of “independent,” including those set forth in pertinent listing standards of NYSE, as in effect from time to time.

Consistent with these considerations, after review of all relevant identified transactions or relationships between each director, or any of his or her family members, and Arcus, its senior management and its independent auditors, the Board has affirmatively determined that the following seven directors are independent directors within the meaning of the applicable NYSE listing standards: Ms. Falberg, Dr. Kaneko, Dr. Lacey, Ms. Lambert, Mr. Machado, Dr. Perlman and Dr. Ribas. In making this determination, the Board found that none of these directors had a material or other disqualifying relationship with Arcus. Dr. Rosen, Dr. Jaen and Ms. Jarrett are not independent by virtue of being executive officers of Arcus, and Drs. Higgins and Parsey are not independent by virtue of their relationship with Gilead.

Our Bylaws and Corporate Governance Guidelines provide our Board with the flexibility to combine or separate the positions of Chairman of the Board and Chief Executive Officer. Dr. Rosen, our Chief Executive Officer, currently serves as our Chairman of the Board and Dr. Kaneko serves as our lead independent director. As lead independent director, Dr. Kaneko presides over periodic meetings of our independent directors, serves as a liaison between our Chief Executive Officer and the independent directors and performs such additional duties as our Board of Directors may otherwise determine and delegate. We believe that our current leadership structure is appropriate as it allows our Board of Directors to benefit from Dr. Rosen’s in-depth knowledge of our business in formulating and implementing strategic initiatives, provides a unified leadership to confront challenges facing our business, and enhances our ability to communicate our message and strategy clearly and consistently to stockholders. We will continue to periodically review our leadership structure and may make changes in the future if appropriate.

One of the key functions of our Board of Directors is informed oversight of our risk management process. In particular, our Board of Directors is responsible for monitoring and assessing strategic risk exposure. Our executive officers are responsible for the day-to-day management of the material risks we face. Our Board of Directors administers its oversight function directly as a whole, as well as through various standing committees that address risks inherent in their respective areas of oversight. Our Audit Committee oversees the management of risks associated with our financial reporting, accounting and auditing matters; our Compensation Committee oversees the management of risks associated with our compensation policies and programs; and our Nominating and Corporate Governance Committee oversees the management of risks associated with director independence, conflicts of interest, composition and organization of our Board of Directors and director succession planning.

The Board of Directors met ten times during the last fiscal year. As required under applicable NYSE listing standards, in fiscal year 2022, Arcus’s independent directors met in regularly scheduled executive sessions at which only independent directors were present. All of our directors, attended at least 75% of the aggregate number of meetings of the Board and of the committees on which they served, held during the portion of the last fiscal year for which they were directors or committee members, respectively.

The Board has three committees: an Audit Committee, a Compensation Committee and a Nominating and Corporate Governance Committee. The following table provides membership and meeting information for fiscal 2022 for each of the Board committees (Drs. Rosen, Jaen, Higgins, Parsey and Ribas, and Ms. Jarrett did not serve on any committees in 2022 or to date):

In March 2023, Dr. Lacey joined the Compensation Committee and became the chair of the Nominating and Corporate Governance Committee, and Ms. Lambert replaced Dr. Kaneko on the Nominating and Corporate Governance Committee.

Each of the committees has authority to engage legal counsel or other experts or consultants, as it deems appropriate to carry out its responsibilities. The Board of Directors has determined that each member of each committee meets the applicable NYSE rules and regulations regarding “independence” and each member is free of any relationship that would impair his or her individual exercise of independent judgment with regard to Arcus. Below is a description of each committee of the Board of Directors.

The Audit Committee of the Board of Directors is established by the Board in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), to oversee Arcus’s corporate accounting and financial reporting processes and audits of its financial statements. For this purpose, the Audit Committee performs several functions. The Audit Committee assists our Board of Directors with:

Among other things, our Audit Committee is responsible for reviewing and discussing with our management the adequacy and effectiveness of our disclosure controls and procedures. The Audit Committee also discusses with our management and independent registered public accounting firm the annual audit plan and scope of audit activities, scope and timing of the annual audit of our consolidated financial statements, and the results of the audit, quarterly reviews of our consolidated financial statements and, as appropriate, initiates inquiries into certain aspects of our financial affairs. Our Audit Committee is responsible for establishing and overseeing procedures for the receipt, retention and treatment of any complaints regarding accounting, internal accounting controls or auditing matters, as well as for the confidential and anonymous submissions by our employees of concerns regarding questionable accounting or auditing matters. In addition, our Audit Committee has direct responsibility for the appointment, compensation, retention and oversight of the work of our independent registered public accounting firm. Our Audit Committee has sole authority to approve the hiring and discharging of our independent registered public accounting firm, all audit engagement terms and fees and all permissible non-audit engagements with the independent auditor. Our Audit Committee reviews and oversees all related person transactions in accordance with our policies and procedures.

The Audit Committee is currently composed of the three following directors: Ms. Falberg, Dr. Kaneko and Dr. Perlman. Each member of our Audit Committee is independent under the rules and regulations of the SEC and the listing standards of the New York Stock Exchange applicable to audit committee members. Ms. Falberg is the chair of the Audit Committee. Our Board of Directors has determined that each of Ms. Falberg and Dr. Kaneko qualify as an audit committee financial expert within the meaning of SEC regulations and meet the financial sophistication requirements of the New York Stock Exchange. The Board of Directors has adopted a written Audit Committee charter that is available to stockholders on Arcus’s website at www.arcusbio.com.

The Audit Committee has reviewed and discussed the audited financial statements for the fiscal year ended December 31, 2022 with management of the company. The Audit Committee has discussed with the independent registered public accounting firm the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board (“PCAOB”) and the Securities and Exchange Commission. The Audit Committee has also received the written disclosures and the letter from the independent registered public accounting firm required by applicable requirements of the PCAOB regarding the independent accountants’ communications with the Audit Committee concerning independence, and has discussed with the independent registered public accounting firm the accounting firm’s independence. Based on the foregoing, the Audit Committee has recommended to the Board of Directors that the audited financial statements be included in the company’s annual report on Form 10‑K for the fiscal year ended December 31, 2022.

The Compensation Committee is composed of three directors: Ms. Falberg, Dr. Kaneko and Dr. Lacey. Each member of the Compensation Committee is independent (as independence is currently defined in NYSE Listed Company Manual Section 303A.02 as applied to compensation committee members). Dr. Kaneko is the chair of the Compensation Committee. The Board has adopted a written Compensation Committee charter that is available to stockholders on Arcus’s website at www.arcusbio.com.

The Compensation Committee of the Board of Directors acts on behalf of the Board to review, adopt and oversee Arcus’s compensation strategy, policies, plans and programs, including:

Typically, the Compensation Committee meets at least annually and with greater frequency if necessary. The Compensation Committee meets regularly in executive session. However, from time to time, various members of management and other employees as well as outside advisors or consultants may be invited by the Compensation Committee to make presentations, to provide financial or other background information or advice or to otherwise participate in Compensation Committee meetings. The Chief Executive Officer may not participate in, or be present during, any deliberations or determinations of the Compensation Committee regarding his compensation. The charter of the Compensation Committee grants the Compensation Committee full access to all books, records, facilities and personnel of Arcus. In addition, under the charter, the Compensation Committee has the authority to obtain, at the expense of Arcus, advice and assistance from compensation consultants and internal and external legal, accounting or other advisors and other external resources that the Compensation Committee considers necessary or appropriate in the performance of its duties. The Compensation Committee has direct responsibility for the oversight of the work of

any consultants or advisers engaged for the purpose of advising the Compensation Committee. In particular, the Compensation Committee has the sole authority to retain, in its sole discretion, compensation consultants to assist in its evaluation of executive and director compensation, including the authority to approve the consultant’s reasonable fees and other retention terms. Under the charter, the Compensation Committee may select, or receive advice from, a compensation consultant, legal counsel or other adviser to the Compensation Committee, other than in-house legal counsel and certain other types of advisers, only after taking into consideration six factors, prescribed by the SEC and NYSE, that bear upon the adviser’s independence; however, there is no requirement that any adviser be independent.

Our Compensation Committee has engaged Radford, Inc. (“Radford”), a nationally-recognized compensation consulting firm, to assist the Compensation Committee in developing appropriate incentive plans for our directors and executives on an annual basis, to provide the Compensation Committee with advice and ongoing recommendations regarding material executive compensation decisions, and to review compensation proposals of management. The Compensation Committee reviewed the independence of Radford, taking into consideration the six factors prescribed by the SEC and NYSE. Based on this assessment, the Compensation Committee determined that the engagement of Radford does not raise any conflicts of interest. In addition, the Compensation Committee evaluated the independence of its other outside advisors to the Compensation Committee, including outside legal counsel, considering the same independence factors.

Under its charter, the Compensation Committee may form, and delegate authority to, subcommittees as appropriate. In 2018, the Compensation Committee formed an Equity Committee, currently composed of Dr. Jaen, to which it delegated authority to grant, without any further action required by the Compensation Committee, equity awards to employees who are not officers of Arcus. The purpose of this delegation of authority is to enhance the flexibility of equity administration within Arcus and to facilitate the timely grant of equity awards to non-management employees, including any annual grants to continuing employees, within specified limits approved by the Compensation Committee.

The specific determinations of the Compensation Committee with respect to executive compensation for fiscal year 2022 are described in greater detail in the “Executive Compensation” section of this proxy statement.

The Compensation Committee of the Board of Directors of Arcus Biosciences, Inc. has reviewed and discussed with management the Compensation Discussion and Analysis contained in this proxy statement. Based on this review and discussion, the Compensation Committee has recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this proxy statement and incorporated into Arcus Biosciences, Inc.’s annual report on Form 10-K for the fiscal year ended December 31, 2022.

The material provided under "Compensation Committee Report" in this report is not “soliciting material”, is not deemed “filed” with the SEC and is not to be incorporated by reference in any filing of Arcus under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.

The Nominating and Corporate Governance Committee of the Board of Directors is responsible for identifying, reviewing and evaluating candidates to serve as directors of Arcus (consistent with criteria approved by the Board), reviewing and evaluating incumbent directors, recommending to the Board for selection candidates for election to the Board of Directors, making recommendations to the Board regarding the membership of the committees of the Board, assessing the performance of the Board, and recommending to the board a set of corporate governance principles for Arcus.

The Nominating and Corporate Governance Committee is composed of three directors: Dr. Lacey, Ms. Lambert and Mr. Machado. Dr. Lacey is the chair of the Nominating and Corporate Governance Committee. All members of the Nominating and Corporate Governance Committee are independent (as independence is currently defined in NYSE Listed Company Manual Section 303A.02). The Board has adopted a written Nominating and Corporate Governance Committee charter that is available to stockholders on Arcus’s website, www.arcusbio.com.

The Nominating and Corporate Governance Committee considers several factors in evaluating potential candidates for the Board. The director qualifications that the Nominating and Corporate Governance Committee has developed to date focus on what the Nominating and Corporate Governance Committee believes to be essential competencies to effectively serve on the Board, including possessing relevant expertise upon which to be able to offer advice and guidance to management, demonstrated excellence in his or her field, having the ability to exercise sound business judgment, having the commitment to rigorously represent the long-term interests of our stockholders, and having sufficient time to devote to the affairs of Arcus. The Nominating and Corporate Governance Committee identifies potential candidates by using its network of contacts as well as solicits additional potential candidates from the Board.

The Nominating and Corporate Governance Committee does not have a formal policy with regard to the consideration of diversity in identifying director nominees, but the Nominating and Corporate Governance Committee strives to nominate directors with a variety of individual backgrounds and complementary skills so that, as a group, the Board will possess the appropriate talent, skills and expertise to oversee Arcus’s business and operations.

The Nominating and Corporate Governance Committee will consider director candidates recommended by stockholders. Stockholders who wish to recommend individuals for consideration by the Nominating and Corporate Governance Committee to become nominees for election to the Board may do so by delivering a written recommendation to the Corporate Secretary at 3928 Point Eden Way, Hayward, CA 94545 at least 120 days prior to the anniversary date of the mailing of the proxy statement for the last annual meeting of stockholders and must include the following information:

The Nominating and Corporate Governance Committee will evaluate candidates recommended by a stockholder in the same manner as candidates identified by any other person, including members of the Board.

Stockholders and any interested party may direct correspondence to our Board or an individual director, including Dr. Kaneko, our lead independent director, to our Corporate Secretary at our principal executive offices at 3928 Point Eden Way, Hayward, CA 94545. The Corporate Secretary will review all correspondence and will forward the communications on to the relevant individual director or the whole Board; however, the Corporate Secretary generally will not forward communications that are primarily solicitations for products or services, matters of a personal nature that are not relevant for stockholders, matters that are of a type that render them improper or irrelevant to the functioning of the Board, or requests for general information about Arcus.

Arcus has adopted the Arcus Biosciences, Inc. Code of Conduct and Ethics that applies to all officers, directors and employees. The Code of Conduct and Ethics is available on Arcus’s website at www.arcusbio.com. If Arcus makes any substantive amendments to the Code of Conduct and Ethics or grants any waiver from a provision of the Code to any executive officer or director, Arcus will promptly disclose the nature of the amendment or waiver on its website or in a Current Report on Form 8-K.

The Board of Directors adopted Corporate Governance Guidelines to document the governance practices followed by Arcus and to assure that the Board will have the necessary authority and practices in place to review and evaluate Arcus’s business operations as needed and to make decisions that are independent of Arcus’s management. The guidelines are also intended to align the interests of directors and management with those of Arcus’s stockholders. The Corporate Governance Guidelines set forth the practices the Board intends to follow with respect to Board composition and selection, Board meetings and involvement of senior management, Chief Executive Officer performance evaluation and succession planning and Board committees and compensation. The Corporate Governance Guidelines, as well as the charters for each committee of the Board, may be viewed at www.arcusbio.com.

Our Insider Trading Policy provides that directors, officers and employees should not (i) engage in any short sales, (ii) acquire, sell, or trade in any interest or position relating to the future price of Arcus’s securities, such as a put or call option, nor (iii) borrow from a brokerage firm, bank or similar entity in order to purchase Arcus securities.

The Audit Committee of the Board of Directors has selected Ernst & Young LLP as Arcus’s independent registered public accounting firm for the fiscal year ending December 31, 2023, and has further directed that management submit the selection of its independent registered public accounting firm for ratification by the stockholders at the Annual Meeting. Ernst & Young LLP has audited Arcus’s financial statements since 2016. Representatives of Ernst & Young LLP are expected to be present at the Annual Meeting. They will have an opportunity to make a statement if they so desire and will be available to respond to appropriate questions.

Neither Arcus’s Bylaws nor other governing documents or law require stockholder ratification of the selection of Ernst & Young LLP as Arcus’s independent registered public accounting firm. However, the Audit Committee of the Board is submitting the selection of Ernst & Young LLP to the stockholders for ratification as a matter of good corporate practice. If the stockholders fail to ratify the selection, the Audit Committee of the Board will reconsider whether or not to retain that firm. Even if the selection is ratified, the Audit Committee of the Board in its discretion may direct the appointment of different independent auditors at any time during the year if they determine that such a change would be in the best interests of Arcus and its stockholders.

The affirmative vote of the holders of a majority of the shares present or represented by proxy and cast on the matter at the Annual Meeting will be required to ratify the selection of Ernst & Young LLP.

The following table represents aggregate fees billed to Arcus for the fiscal years end December 31, 2022 and 2021, by Ernst & Young LLP, Arcus’s principal accountant (in thousands):

(1) Consists of the aggregate fees billed for professional services rendered for the audit of our annual financial statements included in our annual reports on Form 10-K; review of our interim financial statement included in our quarterly reports on Form 10-Q; consultation on technical accounting matters; assistance with registration statements filed with the SEC; and the issuance of comfort letters and consents.

(2) Consists of fees billed for professional services rendered for tax compliance and studies of our research and development tax credits.

(3) Consists of fees billed in the indicated year for an annual subscription to Ernst & Young LLP's online resource library.

In connection with Arcus’s engagement of Ernst & Young LLP, Arcus entered into an engagement agreement with Ernst & Young LLP that sets forth the terms by which Ernst & Young LLP will perform audit services for Arcus, which is subject to alternative dispute resolution procedures.

The Audit Committee must pre-approve audit and non-audit services rendered by Arcus’s independent registered public accounting firm, Ernst & Young. Pre-approval may also be given as part of the Audit Committee’s approval of the scope of the engagement of the independent auditor or on an individual, explicit, case-by-case basis before the independent auditor is engaged to provide each service. The pre-approval of services may be delegated to one or more of the Audit Committee’s members, but the decision must be reported to the full Audit Committee at its next scheduled meeting. The Audit Committee has approved all services by Ernst & Young prior to performance of the services.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and Section 14A of the Exchange Act, Arcus’s stockholders are entitled to cast an advisory vote at the Annual Meeting to approve the compensation of our named executive officers as disclosed in this Proxy Statement. This vote is not intended to address any specific item of compensation, but rather the overall compensation of Arcus’s named executive officers and the philosophy, policies and practices described in this Proxy Statement. Our stockholders have recommended, and our Board has approved, a frequency of each year for advisory votes on executive compensation. Accordingly, the next advisory vote on executive compensation will be at our 2024 Annual Meeting of Stockholders.

The compensation of Arcus’s named executive officers subject to the vote is disclosed in the “Compensation Discussion and Analysis,” compensation tables, and related narrative disclosure contained in this Proxy Statement. Arcus’s executive compensation program is focused on pay-for-performance with a goal of providing competitive overall compensation that attracts and retains top performers and aligns their interests with those of Arcus’s stockholders. Approximately 97% of the votes cast on the say-on-pay proposal at our 2022 annual meeting of stockholders voted in support of the compensation paid to our named executive officers for 2021. We are again requesting your non-binding vote on the following resolution:

“RESOLVED, that the compensation paid to Arcus’s named executive officers, as disclosed pursuant to Item 402 of Regulation S-K, including the Compensation Discussion and Analysis, compensation tables and narrative discussion, is hereby APPROVED.”

Although the vote is an advisory vote only and is not binding on us or the Board, the Compensation Committee and the Board value your opinions and will consider the outcome of the vote in establishing compensation philosophy and making future compensation decisions. Your vote will serve as an additional tool to guide the Compensation Committee and Board in continuing to improve the alignment of our executive compensation programs with business objectives and performance and with the interests of our stockholders.

The affirmative vote of a majority of shares cast is required for approval of this proposal. Votes “For” and “Against” will affect the outcome. Abstentions and broker non-votes are not considered to be votes cast and therefore will have no effect.

The following table presents information as to the beneficial ownership of our common stock as of March 1, 2023, for:

Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Unless otherwise indicated below, to our knowledge, the persons and entities named in the table have sole voting and sole investment power with respect to all shares beneficially owned, subject to community property laws where applicable. Common stock subject to options that are currently exercisable or exercisable within 60 days of March 1, 2023, are deemed to be outstanding and to be beneficially owned by the person holding the options for the purpose of computing the percentage ownership of that person, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person.

Percentages of beneficial ownership of our common stock in the table is based on 73,019,199 shares of common stock issued and outstanding on March 1, 2023.

* Represents beneficial ownership of less than one percent of the outstanding common stock.

(1) Based on Schedule 13D filed with the SEC on February 2, 2021 by Gilead Sciences, Inc., reporting beneficial ownership as of January 31, 2021. The number of shares that may be acquired within 60 days is the number of shares that may be acquired pursuant to the terms of the Amended and Restated Common Stock Purchase Agreement, dated January 31, 2021 between Gilead and Arcus, which number is the maximum that will cause Gilead’s beneficial ownership to be 35.0% subsequent to the issuance of such shares. The principal business address of Gilead is 333 Lakeside Drive, Foster City, California 94404.

(2) Based on Schedule 13G/A filed with the SEC on January 26, 2023 by BlackRock, Inc., reporting beneficial ownership as of December 31, 2022. Blackrock, Inc. has sole dispositive power with respect to all of these shares and sole voting power with respect to 9,220,847 of these shares. Blackrock Fund Advisors may also be deemed to beneficially own 5% or more of our outstanding shares of common stock. The principal business address of BlackRock, Inc. is 55 East 52nd Street, New York, NY 10055.

(3) Based on Schedule 13G filed with the SEC on February 9, 2023 by The Vanguard Group, Inc., reporting beneficial ownership as of December 30, 2022. The Vanguard Group, Inc. has sole dispositive power with respect to 4,290,724 of these shares, shared dispositive power with respect to 82,453 of these shares and shared voting power with respect to 34,538 of these shares. The principal business address of The Vanguard Group, Inc. is 100 Vanguard Blvd., Malvern, PA 19355.

(4) Shares owned includes 4,066,844 shares of common stock held by trusts, of which 632,974 shares are held in family trusts in which Dr. Rosen has no pecuniary interest but retains voting and dispositive power.

(7) Shares owned consists of (a) 505,050 shares of common stock held by Kaneko Capital, LLC, (b) 252,524 shares of common stock held by Kaneko Investments, LLC, and (c) 142,081 shares of common stock held by trusts.

(9) Consists of the number of shares beneficially owned by all current executive officers and directors as of March 1, 2023.

The following table sets forth information regarding our executive officers as of April 1, 2023:

For a biography of each of Dr. Rosen, Dr. Jaen and Ms. Jarrett, see “Proposal 1 – Election of Directors.”

Robert C. Goeltz II has served as our Chief Financial Officer since August 2020. Mr. Goeltz joined Arcus from UNITY Biotechnology, Inc. (Nasdaq: UBX), a healthcare company focused on age-associated diseases, where he served as Chief Financial Officer and Senior Vice President from September 2017 to July 2020, in which position he was responsible for investor and public relations, accounting, financial planning and analysis, information systems, real estate, insurance, procurement and facilities. Prior to Unity, Mr. Goeltz was Chief Financial Officer and Senior Vice President at CytomX Therapeutics, Inc. (Nasdaq: CTMX), a biotechnology company focused on cancer therapeutics, from May 2015 to May 2017, in which position he was responsible for investor relations, finance, real estate, insurance, procurement, facilities and information systems. Prior to that, Mr. Goeltz served as Chief Financial Officer of Onyx Pharmaceuticals, Inc. after its acquisition by Amgen Inc., from October 2013 until May 2015. Previously, Mr. Goeltz held roles of increasing responsibility at Amgen Inc. (Nasdaq: AMGN), including in Business Development, Commercial Finance, R&D Finance and Corporate Accounting from 2004 to 2013. He began his career working in the audit practice of Ernst & Young LLP. Mr. Goeltz received a B.B.A. in Business from Emory University and an M.B.A. from the UCLA Anderson School of Management. He is also a Certified Public Accountant (inactive).

Dimitry S.A. Nuyten, M.D., Ph.D. has served as our Chief Medical Officer since August 2022. Prior to joining Arcus, Dr. Nuyten served as Senior Vice President and Chief Medical Officer of Nektar Therapeutics (Nasdaq: NKTR), a biopharmaceutical company, from July 2021 to June 2022, in which role he was responsible for the development strategy and leading the development organization and the clinical development, clinical pharmacology, clinical operations, clinical and non-clinical pharmacology, biometrics and safety departments. Prior to Nektar he served as Chief Medical Officer of Aduro Biotech, Inc., a biopharmaceutical company, from May 2019 to until its merger with Chinook Therapeutics, Inc. in October 2020, in which role he was responsible for the company’s development strategy and operations. Following the merger, Dr. Nuyten served as a consultant to Chinook Therapeutics until December 2020. From July 2013 to April 2019, Dr. Nuyten was with Pfizer Inc. (NYSE: PFE), a global pharmaceutical and biotechnology company, most recently serving as Vice President and ImmunoOncology Development Leader from March 2017 to April 2019, in which role he was responsible for leading the clinical team and the clinical development and strategy for the immune-oncology portfolio. From 2008 to June 2013, Dr. Nuyten was with Bristol-Myers Squibb, Co. (NYSE: BMY), a global biopharmaceutical company. Dr. Nuyten received his medical degree from the University of Groningen and his Ph.D. in Cancer Biology from the University of Amsterdam Medical School and trained as radiation-oncologist at the Netherlands Cancer Institute in Amsterdam, The Netherlands.

Carolyn Tang has served as our General Counsel since September 2019. Ms. Tang joined Arcus in July 2017, and previously held the role of Vice President of Legal starting in August 2018 and Head of Legal from July 2017. From July 2015 to March 2017, Ms. Tang was Director of Securities and Transactions at Medivation, Inc., a biopharmaceutical company, where she was responsible for securities, corporate governance and strategic transactions until the company’s acquisition by Pfizer, Inc. From 2004 to 2015, Ms. Tang was at InterMune, Inc., a biotechnology company focused on pulmonology and orphan fibrotic diseases, ultimately having responsibility for the company’s global intellectual property portfolio, strategic transactions, and supporting the company’s corporate and securities activities, including the establishment and administration of its European subsidiaries, until InterMune’s acquisition by Roche Holdings, Inc. Ms. Tang received her law degree from Santa Clara University School of Law and her B.A. in Molecular and Cell Biology, with an emphasis in Neurobiology, from the University of California at Berkeley.

This Compensation Discussion and Analysis provides an overview of the material components of our executive compensation program for the fiscal year ended December 31, 2022, for the following “Named Executive Officers”, whose compensation is set forth in the Summary Compensation Table and other compensation tables contained in this Proxy Statement:

This discussion and analysis is intended to enhance your understanding of the information provided in the compensation tables below and to provide additional context regarding our overall executive compensation program.

We are a clinical-stage biopharmaceutical company focused on creating best-in-class therapies. Using our robust and highly efficient drug discovery capability, we have created a significant portfolio of investigational products which are in clinical development, with our most advanced molecule, an anti-TIGIT antibody, now in four Phase 3 registrational studies targeting lung and gastrointestinal cancers. Our deep portfolio of novel small molecules and enabling antibodies allows us to create highly differentiated therapies, which we are developing to treat multiple large indications. We expect our clinical-stage portfolio to continue to expand and to include molecules targeting immuno-oncology, cancer cell-intrinsic and immunological pathways. Our vision is to create, develop and commercialize highly differentiated therapies that have a meaningful impact on patients.

To efficiently advance our portfolio, in 2020 we entered into an Option, License and Collaboration Agreement (Gilead Collaboration Agreement) with Gilead Sciences, Inc. (Gilead) that provides us with a worldwide co-development partner while allowing us to retain rights to co-commercialize in the United States. Gilead has the right to commercialize outside of the United States, subject to the rights of our existing partners. To date, Gilead has obtained licenses to four programs—our PD-1 program (including zimberelimab), our TIGIT program (including domvanalimab and AB308), our adenosine receptor antagonist program (including etrumadenant) and our CD73 program (including quemliclustat). In 2017, we entered into an Option and License Agreement (Taiho Agreement) with Taiho Pharmaceutical Co., Ltd. (Taiho) to facilitate and enable the development of our assets in Japan and certain other territories in Asia (excluding China). To date, Taiho has obtained licenses to three programs—our PD-1 program (including zimberelimab), our TIGIT program (including domvanalimab and AB308), and our adenosine receptor antagonist program (including etrumadenant).

At our 2022 annual meeting of stockholders, approximately 97% of the votes cast on the say-on-pay proposal voted in support of the compensation paid to our named executive officers for 2021. While this vote was only advisory and not binding, the Compensation Committee believes that the 2022 stockholder vote generally endorsed our compensation philosophy and the decisions made for 2021 and did not make any significant changes to our core compensation philosophies and practices in 2022.

The following summarizes key highlights of our corporate performance during our fiscal year ended on December 31, 2022:

The goals of our executive compensation program are to align our executive officers’ compensation with our corporate objectives and the interests of our stockholders. To do this, we focus on the following principles to guide decisions regarding executive compensation:

Our Compensation Committee oversees the compensation policies, plans, and programs for all of our employees generally, but only reviews and specifically approves the compensation for our executive officers. In making its executive compensation determinations, our Compensation Committee considers recommendations from our Chief Executive Officer (except with respect to his own performance and compensation). The Compensation Committee considers our Chief Executive Officer’s input and can accept, reject or modify these recommendations in its discretion. The Compensation Committee may consult with compensation consultants, legal counsel and other advisors in designing our compensation program, including in evaluating the competitiveness of individual compensation packages.

A key objective of our executive compensation program is to ensure that the overall compensation packages we offer our executive officers remain competitive with the packages offered by companies with which we compete for executive talent. Accordingly, our Compensation Committee, with the assistance of its compensation consultant, Radford, has developed a peer group of companies to serve as the basis for comparing our executive compensation program to the market. The Compensation Committee annually reviews the composition of the peer group to account for changes in both our business and the businesses of the companies in the peer group, considering:

Following this review, the Compensation Committee approved the peer group set forth below to help set executive compensation for our fiscal year 2022, which differed from the prior year peer group as six companies were added and nine companies were removed. The changes to our peer group from the prior year are largely due to changes in our headcount and market capitalization.

Our executive compensation program generally consists of three principal components:

As part of our pay-for-performance philosophy, a substantial portion of executive compensation is variable and at risk. However, we do not have any formal policies for allocating compensation among salary, cash bonus opportunity and equity incentives, or among cash and non-cash compensation. Instead, the Compensation Committee uses its judgment to establish a total compensation program for each executive officer that it believes is appropriate to achieve the goals of our executive compensation program and our corporate objectives.

Base salary is intended to provide financial security through a fixed amount of cash compensation to compensate our executive officers for performing their day-to-day duties and responsibilities. We believe this balances against the impact of having the remainder of their compensation at risk in the form of annual cash bonuses and equity-based incentive compensation. The Compensation Committee establishes base salary amounts based on a number of factors, including the market data from peer companies provided by our compensation consultant, Radford, generally targeting the 50th to 75th percentile. However, the Compensation Committee also considers the scope of the executive officer’s responsibilities, experience, achievements, leadership, teamwork and value to us. The Compensation Committee reviews the base salary of each of our executive officers on an annual basis.

Dr. Rosen was entitled to a $400,000 base salary in 2021 and 2022. However, Dr. Rosen voluntarily reduced his annual salary to fund an employee meal program resulting in an annual salary of $366,875 and $350,000 for 2021 and 2022, respectively.

For 2022, Mr. Goeltz received a base salary of $470,000 (an increase of $35,000 from the prior year), Dr. Jaen received $550,000 (an increase of $15,000 from the prior year) and Ms. Jarrett received $550,000 (an increase of $25,000 from the prior year). Dr. Nuyten, who joined us in August 2022, received an annualized base salary of $540,000.

Cash bonus is intended to motivate and reward our executive officers for attaining rigorous annual corporate performance goals that relate to our key business objectives. The Compensation Committee generally reviews annually the target bonus amounts, calculated as a percentage of base salary, which are determined based upon competitive bonus opportunities among our peer group, generally targeting the 50th to 75th percentile. The

Compensation Committee determines actual bonus amounts earned after the end of the year based on our overall performance and each individual’s achievement and contributions.

Our annual corporate performance goals are typically established around the beginning of each year. Management prepares a set of goals covering corporate, development and financial objectives and key activities, which is then reviewed and, following any modification the Compensation Committee deems appropriate, approved by our Compensation Committee. For 2022, our Compensation Committee approved corporate performance goals, which included:

We do not disclose the specific portions or weighting of these goals, because they include highly sensitive and competitive data, and therefore, we believe that such disclosure would result in competitive harm to us.

The Compensation Committee does not use a formula to calculate the company’s or any individual’s performance. Rather, it qualitatively evaluates the totality of the company’s progress and performance, contribution towards the creation of long-term stockholder value, and achievements relative to the goals. Achievements considered by the Compensation Committee include the “2022 Business Highlights” discussed above and the 2022 bonuses approved by the Compensation Committee for each Named Executive Officer are set forth below:

(1) Dr. Rosen requested that the compensation committee reduce the bonus contemplated by the compensation committee to be awarded to him by $100,000 to enable such amount to be distributed to the other executive officers as part of their bonuses.

(2) Dr. Nuyten joined the Company August 2022 and received a pro-rated 2022 bonus.

The Compensation Committee considered Arcus' 2022 achievements, particularly the rapid alignment with Gilead to significantly expand the co-development program for domvanalimab and initiation of five Phase 2 and 3 studies (ARC-21, STAR-221, STAR-121, EDGE-Lung and VELOCITY-Lung), all in 2022, which the Committee considered critical to the company’s success. In recognition of Dr. Rosen’s leadership of the company, the Compensation Committee awarded him a bonus in the amount set forth in the table above.

With respect to Mr. Goeltz, key performance highlights included the continued enhancement and strengthening of the company’s finance team capabilities and infrastructure, particularly in accounting and financial planning following the company’s receipt of $725 million in option payments from Gilead in January 2022, which nearly

doubled the company’s cash position. As a result, the company underwent a period of intense growth (human, infrastructure and clinical trials) and Mr. Goeltz's leadership, strategic planning and foresight are critical to ensuring that we optimize the financial benefits of and opportunities associated with our relationship with Gilead.

With respect to Dr. Jaen, key performance highlights included evolution of the company’s small molecule discovery leadership team to support the expanded complexity associated with the advancement and expansion of the portfolio of programs, advancement of the company’s CD39 antibody and AXL inhibitor into IND-enabling studies, that will enable first in human studies in 2023, and advancing our first program targeting inflammation, for which we have selected the development candidate, AB375. Dr. Jaen also continued to enhance the company’s relationship with Gilead’s discovery organization, advancing work on two research collaboration targets that provide additional opt-in opportunities for Gilead and associated financial opportunities for us, and provides opportunities to continue to expand our early-stage collaborative efforts.

With respect to Ms. Jarrett, key performance highlights included leadership of our corporate governance framework, including our Portfolio Steering Committee, with continued improvement in collaboration and cooperation amongst teams, as well as enhancing alignment with our counterparts at Gilead, working towards a seamless integration of our teams to enable the most efficient cross-company execution of our joint clinical development plan. These efforts were critical to our ability to align on and expand our domvanalimab development program from three Phase 2 and Phase 3 studies to eight Phase 2 and Phase 3 studies in 2022. Ms. Jarrett also led the development of a holistic strategic plan that informs our evolving priorities and corresponding resource allocations and further led our efforts to understand and enable our opportunities for molecule and programmatic differentiation as we began to consider the commercialization of programs associated with huge and highly competitive markets. Ms. Jarrett’s efforts on the corporate development front, both strategic and tactical, laid the groundwork for an opportunity for us to fully leverage the advantages associated with AB521 and enable its potential as a “best-in-class” agent as well as component in a “best in class combination”.

With respect to Dr. Nuyten, while he was on-board for only part of 2022, he had immediate impact, particularly with respect to his leadership within the Development organization and cross-functionally. He rapidly created a new leadership team, built with both existing senior Arcus staff and newly recruited key hires, laid out and communicated a vision and operational framework for the entire Development organization and put in place scalable functional governance and team structures consistent with the company’s complex portfolio of molecules and trials and recent transition to a late-stage development organization, as well as the unique operational circumstances associated with the expanded breadth of collaborative activities in our Gilead collaboration. These efforts were critical to delivery on several of our corporate goals but most importantly provided solid momentum heading into 2023 and the inherent opportunities in the efforts of the Development organization.

We believe that equity grants provide our executives with a strong link to our long-term performance, create an ownership culture and help to align the interests of our executives and our stockholders. Therefore, equity awards represent the largest at-risk component of our executive compensation program. For our 2022 annual equity awards, our Compensation Committee determined that the appropriate mix for our equity grants be split, with approximately 75% of the value delivered through stock options and 25% of the value delivered through RSUs. The Compensation Committee believes that this equity mix helps to ensure long-term performance and strong alignment with our stockholders’ interests because their value predominantly depends on future stock price appreciation. Including RSUs also promotes retention and allows us to deliver value while using fewer authorized shares.

In determining the aggregate value of the equity awards granted to our executive officers, the Compensation Committee considers a number of factors, including corporate and individual performance, current equity holdings and their retention value and total ownership, historical value of our stock, internal equity amongst executives and market data provided by Radford.

For our 2022 annual equity awards, the Compensation Committee approved these awards at its meeting in the first quarter of 2022 following completion of our annual performance review process. We do not time the grant of our equity awards to be in advance of the announcement of any material information.

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. In 2022, we began providing a company match to all eligible employees. For the 2022 plan year, we matched 100% of the participant’s salary deferrals up to 6% of their salary and a maximum of $4,000 per participant for the plan year. In addition, we provided a health and wellness and commute/telecommute stipend of $300 per quarter for each eligible employee.

The following table shows compensation awarded to or paid to, or earned by, our Named Executive Officers for the fiscal years ended December 31, 2022, 2021 and 2020:

(1) The amount represents the aggregate grant date fair value of restricted stock units on the date of grant, computed in accordance with FASB ASC Topic 718. The valuation assumptions used in determining fair values for option awards are described in Note 8 to our financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

(2) The amount represents the aggregate grant date fair value of stock options computed in accordance with FASB ASC Topic 718. The valuation assumptions used in determining fair values for option awards are described in Note 8 to our financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

(3) The amounts disclosed represent cash bonuses earned upon achievement of annual corporate performance goals for the applicable year and were payable after the end of the year according to the terms of the bonus program, based on the company's overall performance and each individual's achievement and contributions.

(4) Dr. Rosen voluntarily agreed to reduce his salary from $400,000 for the fiscal years 2022, 2021 and 2020 to fund an employee meal program.

(5) Reflects a discretionary bonus paid in recognition of Dr. Rosen's leadership and performance that contributed to our 2021 achievements, particularly the validation of our programs with Gilead's option exercises.

(6) Includes $262,041 paid on Dr. Rosen's behalf for HSR filing fees and related payroll taxes.

(7) In the period from January 2020 to October 2020, when she joined the company as Chief Operating Officer, Ms. Jarrett received $27,871 in fees (reported in the “All other compensation” column), 3,000 restricted stock units with a total grant date fair value of $90,150 (reported in the “Stock awards” column), and 14,000 stock options with a grant date fair value of $281,089 (reported in the “Stock options” column), all for her service as a nonemployee director. In October 2020, Ms. Jarrett received a new hire grant of 900,000 stock options with a grant date fair value of $10,297,350 (reported in the “Stock options” column).

The following table shows certain additional information regarding grants of plan-based awards to our Named Executive Officers for the 2022 fiscal year:

(1) Reflects the target award each Named Executive Officer was eligible to receive. Actual amounts paid in early 2022 are presented in the Summary Compensation Table above. There were no threshold or maximum amounts established.

(2) Represents the grant-date fair value of each equity award, calculated in accordance with Topic 718.

The following table shows for the fiscal year ended December 31, 2022, certain information regarding outstanding equity awards at fiscal year-end for the Named Executive Officers:

(1) For the purpose of determining market value, we assumed a stock price of $20.68, the closing sale price per share of our common stock on December 30, 2022, the last business day of our last fiscal year.

(2) The shares subject to this option vest in 48 substantially equal monthly installments commencing on January 16, 2019, provided the officer remains in our continuous service through each vesting date.

(3) The shares subject to this option vest in 48 substantially equal monthly installments commencing on January 1 of the year of grant provided the officer remains in our continuous service through each vesting date.

(4) The shares subject to this option vest in 48 substantially equal monthly installments commencing on August 1, 2020, provided the officer remains in our continuous service through each vesting date.

(6) The shares subject to this option vest in 48 substantially equal monthly installments commencing on October 1, 2020, provided the officer remains in our continuous service through each vesting date.

(7) The shares subject to this option vest in 48 substantially equal monthly installments commencing on August 1, 2022, provided the officer remains in our continuous service through each vesting date.

(8) The shares subject to this RSU award vest in four equal annual installments commencing June 15, 2021, provided the officer remains in our continuous service through each vesting date. Accordingly, the number of shares in the table reflect only those shares subject to the RSU award that remain unvested.

(9) The shares subject to this RSU award vest in four equal annual installments commencing December 15 of the year of grant, provided the officer remains in our continuous service through each vesting date. Accordingly, the number of shares in the table reflect only those shares subject to the RSU award that remain unvested.

(10) The shares subject to this RSU award vest in sixteen substantially equal quarterly installments commencing March 15, 2021, provided the officer remains in our continuous service through each vesting date. Accordingly, the number of shares in the table reflect only those shares subject to the RSU award that remain unvested.

There were no exercises of stock options by the Named Executive Officers during the year ended December 31, 2022. The below table describes the number of shares acquired upon vesting of RSUs for the Named Executive Officers during the year ended December 31, 2022. Dr. Nuyten's RSUs did not vest during the year ended December 31, 2022.

(1) The amount represents the closing market price of our common stock on the vesting date multiplied by the number of shares of common stock that vested on that date.

The table below provides the potential payments that each of our Named Executive Officers would have received (i) in the event of termination without cause or (ii) in the event of termination without cause or by the Named Executive Officer for good reason in connection with a change in control. The amounts below assume that the triggering event occurred on December 31, 2022.

(1) The value of the equity acceleration would be equal to the shares multiplied by (i) in the case of options, the excess of the then current stock price over the exercise price of the options and (ii) in the case of RSUs, the then current stock price. For the purposes of this table, we have calculated the value of the acceleration using a stock price of $20.68, the closing sale price per share of our common stock on December 30, 2022, the last business day of our last fiscal year.

Pursuant to the severance program approved by the Compensation Committee, in the event of termination without cause, Arcus’s Chief Executive Officer and President would be entitled to (i) severance in the amount of 12 months of the officer’s then-current base salary, (ii) payment or reimbursement of healthcare continuation premiums under COBRA for up to 12 months and (iii) consideration of their pro-rata bonus based on the number of days that the officer was employed during such year. Under the severance program, Arcus’s other C-level officers, which includes the named executive officers, are eligible for the foregoing severance benefits, but in an amount of up to nine months of the officer’s then-current base salary and up to nine months of healthcare continuation payments or reimbursements. The cash severance comprising amounts based on base salary and bonus would typically be provided in a lump sum shortly following the officer’s separation. The healthcare premiums would typically be made on a

monthly basis in accordance with the company’s existing schedule for healthcare benefit payments. In all events, in order to receive the payments and benefits, the officer will be required to, among other things, execute and not revoke a general release of claims against the company and certain related parties.

Pursuant to the Severance and Change in Control Agreements entered into with each of our Named Executive Officers, if we terminate the respective officer’s employment for reasons other than cause, or if the officer voluntarily resigns for certain good reason (which we refer to collectively as an involuntary termination) within 12 months following a change in control (as defined in the agreement) of Arcus, then the officer will be eligible to receive, contingent on returning all of our property in the officer’s possession, executing and not revoking a general release of claims against us and certain related parties, and resigning as a member of our Board of Directors, continued payment of base salary for a twelve-month period, at the rate in effect at the time of termination (but without giving effect to any reduction triggering a resignation for good reason), a lump-sum cash amount equal to the officer’s target bonus for the fiscal year in which such termination occurs, prorated for the number of days that the officer was employed during such year, and if timely elected by the officer, payment of healthcare continuation premiums under COBRA for up to twelve months, and full vesting of all existing and future equity compensation awards.

Good reason means a resignation of employment within twelve months after one of the following conditions has come into existence without the officer’s consent, which remains uncured more than 30 days after delivery of notice to us of such condition within 90 days following the initial existence of such condition:

Change in control means certain mergers or consolidations of us with or into another entity; a sale, conveyance or other disposition of all or substantially all of our assets, property or business; or the acquisition by any person or persons acting as a group of beneficial ownership (or a right to acquire beneficial ownership) of shares representing a majority of the voting power of the then-outstanding shares of our capital stock.

Under SEC rules, we are required to calculate and disclose the ratio of our median employee’s annual total compensation to the annual total compensation of Dr. Rosen, our CEO. For the fiscal year ended December 31, 2022, the total compensation for Dr. Rosen was $9,048,432 as reported in the Summary Compensation Table, whereas the total compensation for our median employee was $241,234 resulting in a pay ratio of approximately 37.5 to 1.

We identified median employee by use of a “consistently applied compensation measure” (CACM) that closely approximates the annual target total direct compensation of our employees. Specifically, we identified the median employee by aggregating, for each employee (other than Dr. Rosen) as of November 15, 2022: (i) annual base pay, (ii) annual target cash incentive opportunity, and (iii) the grant date fair value for equity awards granted in 2022. After applying our CACM methodology, we identified the median employee. Once the median employee was identified, we calculated the median employee’s annual total compensation in accordance with the requirements of the Summary Compensation Table.

The pay ratio reported above is a reasonable estimate calculated in a manner consistent with SEC rules, based on our internal records and the methodology described above. The SEC rules for identifying the median compensated employee allow companies to adopt a variety of methodologies, to apply certain exclusions and to make reasonable estimates and assumptions that reflect their employee populations and compensation practices. Accordingly, the pay ratio reported by other companies may not be comparable to the pay ratio reported above, as other companies have different employee populations and compensation practices and may use different methodologies, exclusions, estimates and assumptions in calculating their own pay ratios. Neither the Compensation Committee nor management uses the CEO Pay Ratio measure in making compensation decisions.

Pay versus Performance

The following table discloses additional compensation information of our CEO and other NEOs (Other NEOs), including “compensation actually paid” during the specified years alongside total shareholder return (TSR) and net income metrics:


											Value of initial fixed $100 investment based on:
	Summary compensation table total for CEO		Compensation actually paid to CEO(2)(3)			Average summary compensation table total for Other NEOs		Average Compensation actually paid to Other NEOs(2)(4)			Total shareholder return(5)		Peer group total shareholder return(5)		Net income(6)
Year(1)	($)		($)			($)		($)			($)		($)		($ millions)
2022		9,048,432		(2,065,105	)		4,191,618		(2,394,074	)		204.75		87.61		(267	)
2021		9,483,339		14,577,932			5,939,512		7,091,681			400.69		117.83		53
2020		5,685,664		12,015,409			5,363,707		10,455,559			257.03		148.03		(123	)

(1) Our CEO for each of the years presented was Dr. Rosen. Our Other NEOs for 2022 were Bob Goeltz, Juan Jaen, Jennifer Jarret and Dimitry Nuyten. Our Other NEOs for 2021 were Bob Goeltz, Juan Jaen, Jennifer Jarret, Carolyn Tang and William Grossman. Our Other NEOs for 2020 were Jennifer Jarrett and William Grossman.

(2) Fair value or change in fair value, as applicable, of equity awards in the "compensation actually paid" columns was determined by reference to (i) for RSU awards, closing price on applicable year-end dates or, in the case of vesting dates, the actual vesting price and (ii) for stock options, the fair value estimated using a binomial lattice model as of the applicable year-end or vesting date(s). Key inputs included the contractual terms of each agreement such as vesting date, maturity date, and exercise price, while additional key inputs included the closing stock price, volatility, dividend rates, risk free rates, and an early-exercise factor which were all determined as of the revaluation date.

(3) The adjustments made to the summary compensation table total for Dr. Rosen's for each year presented above to determine compensation actually paid to Dr. Rosen in such year are shown in the tables below:


	2022			2021			2020
Summary compensation table total		9,048,432			9,483,339			5,685,664
Less, value of stock & option awards		(8,292,320	)		(8,548,858	)		(5,356,475	)
Plus year-end value of awards granted in fiscal year that are unvested and outstanding		3,788,462			7,142,260			7,893,097
Plus change in fair value of prior year awards that are outstanding and unvested		(5,490,389	)		3,923,736			1,828,423
Plus FMV as of the vesting date of awards granted this year and that vested this year		1,608,814			1,783,385			1,108,163
Plus change as of the vesting date in fair value (from prior year-end) of prior year awards that vested this year		(2,728,104	)		794,070			856,538
Total adjustments		(11,113,537	)		5,094,593			6,329,745
Compensation actually paid		(2,065,105	)		14,577,932			12,015,409

(4) The adjustments made to the average summary compensation table total for Other NEOs for each year presented above to determine average compensation actually paid to Other-NEOs in such year are shown in the tables below:

35.


	2022			2021			2020
Summary compensation table total		4,191,618			5,939,512			5,363,707
Less, value of stock & option awards		(3,444,851	)		(5,298,516	)		(4,864,788	)
Plus year-end value of awards granted in fiscal year that are unvested and outstanding		1,848,729			3,797,282			6,969,591
Plus change in fair value of prior year awards that are outstanding and unvested		(4,050,986	)		2,678,504			1,656,950
Plus FMV as of the vesting date of awards granted this year and that vested this year		528,662			1,094,353			509,856
Plus change as of the vesting date in fair value (from prior year-end) of prior year awards that vested this year		(1,467,247	)		678,367			820,243
Less, prior year fair value of prior year awards that failed to vest this year		-			(1,827,217	)		-
Plus adjustments for stock modification		-			29,396			-
Total adjustments		(6,585,693	)		1,152,169			5,091,852
Compensation actually paid		(2,394,074	)		7,091,681			10,455,559

(5) TSR figures assume an initial investment in our common stock of $100 on December 31, 2019. The peer group referenced for purpose of the TSR comparison is the group of companies included in the S&P Biotechnology Index, which is the industry peer group used for purposes of Item 201(e) of Regulation S-K. The separate peer group used by the Compensation Committee for purposes of determining compensation paid to our executive officers is described on page 27.

(6) Reflects after-tax net income attributable to stockholders prepared in accordance with GAAP for each of the years shown.

As described above under “Compensation Discussion and Analysis,” our executive compensation program is built around a pay-for-performance framework. While we utilize various performance measures to align executive compensation with company performance, these measures are focused on the clinical development of our investigational products and, as such, are non-financial in nature. Moreover, we generally seek to incentivize long-term performance, and therefore do not specifically align the company’s performance measures with compensation that is actually paid (as computed in accordance with Item 402(v) of Regulation S-K) for a particular year. As a result, we do not have a financial performance measure as described in Item 402(v)(2)(vi) of Regulation S-K to link compensation actually paid to our performance. The most important performance measures that we use to link executive compensation actually paid to our NEOs, for the most recently completed fiscal year, to company performance are as follows:

All information provided above under the “Pay Versus Performance” heading will not be deemed to be incorporated by reference into any filing of Arcus Biosciences under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing, except to the extent we specifically incorporate such information by reference.

As noted above, Arcus’s Compensation Committee consists of Ms. Falberg, Dr. Kaneko and Dr. Lacey. None of the members of our Compensation Committee has at any time during the past three years been one of our officers or employees. None of our executive officers currently serves or in the prior three years has served as a member of the Board of Directors or Compensation Committee of any entity that has one or more executive officers serving on our Board of Directors or Compensation Committee.

We pay each of our non-employee directors annual cash retainers, paid quarterly in arrears, as follows:

Our Compensation Committee will grant to each non-employee director when he or she first becomes a member of the Board of Directors an initial equity award. An initial equity award having a grant date fair value of approximately $625,000 will be granted automatically, without any further action on the part of the Board or the Compensation Committee on the date the person becomes a director of the company. Further, an annual equity award having a grant date fair value of approximately $350,000 will be granted automatically, without any further action on the part of the Board or the Compensation Committee on the date of our annual meeting of stockholders. Initial and annual equity awards will be split between stock options and RSUs, with approximately 2/3 of the value delivered through stock options and the remaining 1/3 through RSUs.

Options issued as part of an initial or annual equity awards shall have an exercise price equal to the Fair Market Value (as defined in our 2018 Equity Incentive Plan) on the date of grant. Subject to the director’s continuous service on the Board of Directors, initial option awards shall vest and become exercisable in substantially equal monthly installments over 36 months and initial RSU awards shall vest in three substantially equal annual installments. Subject to the director’s continuous service on the Board of Directors, annual option and RSU awards will vest and become exercisable in full on the earlier of (i) the date that is 12 months following the date of grant or (ii) the date of the next annual stockholder meeting following the grant. Initial and annual equity awards will become fully vested and exercisable in the event that Arcus is subject to a change in control. The foregoing notwithstanding, a new director who has received an initial equity award will not in the same calendar year receive an annual equity award.

The following table sets forth information about the compensation of the non-employee members of our Board of Directors who served as a director during the year ended December 31, 2022. We did not pay any compensation for service as a director to Dr. Rosen, Dr. Jaen, Ms. Jarrett, Dr. Higgins or Dr. Parsey in the year ended December 31, 2022.

(1) The amount represents the aggregate fair market value of restricted stock units on the date of grant. Each of these directors was granted only one restricted stock unit award in 2022. The valuation assumptions used in determining such amounts are described in Note 8 to our financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Each of these directors was granted only one stock option award in 2022.

(2) The amounts in this column reflect the aggregate grant date fair value of each option award granted during the fiscal year computed in accordance with FASB ASC Topic 718. The valuation assumptions used in determining such amounts are described in Note 8 to our financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Each of these directors was granted only one stock option award in 2022.

The below table summarizes the options to purchase shares of our common stock and the unvested restricted stock units held by our non-employee directors at December 31, 2022:

The following table provides certain information regarding our equity compensation plans in effect as of December 31, 2022:

(1) The number of shares remaining available for future issuance includes shares available under our 2018 Equity Incentive Plan (2018 Plan) and shares available under our 2018 Employee Stock Purchase Plan (2018 ESPP). As of December 31, 2022, a total of 2,043,792 shares remained available for future issuance under the 2018 ESPP, of which approximately 200,000 shares are subject to purchase during the current purchase period. The maximum number of shares subject to purchase rights under the 2018 ESPP is a function of stock price and total employee contributions as of the purchase date. As such, Arcus cannot reasonably determine the number of shares subject to purchase rights as of December 31, 2022, and such shares are not reflected in the amount subject to rights outstanding.

(2) The weighted-average exercise price takes into account shares subject to outstanding restricted stock units, which have no exercise price. The weighted-average exercise price excluding such outstanding RSUs is $18.55.

(3) Represents shares of our common stock issuable pursuant to the 2020 Inducement Plan (2020 Plan). The Board adopted the 2020 Plan in January 2020, as subsequently amended, pursuant to which we reserved a total of 9,000,000 shares of our common stock for issuance under the 2020 Plan. The only persons eligible to receive grants of Awards under the 2020 Plan are individuals who satisfy the standards for inducement grants under NYSE Listed Company Manual Rule 303A.08 - that is, generally, a person not previously an employee or director of Arcus, or following a bona fide period of non-employment, as an inducement material to the individual's entering into employment with Arcus. An “Award” is any right to receive Arcus common stock pursuant to the 2020 Plan, consisting of non-statutory stock options, stock appreciation rights, restricted stock awards, RSUs, or any other stock award.

(4) The weighted-average exercise price takes into account shares subject to outstanding restricted stock units, which have no exercise price. The weighted-average exercise price excluding such outstanding RSUs is $26.37.

The number of shares of common stock reserved for issuance under the 2018 Plan automatically increases on January 1 of each year during the term of the 2018 Plan by the lesser of 3,750,000 shares, 4% of the total number of shares of our capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by our Board of Directors.

The number of shares of common stock reserved for issuance under the 2018 ESPP automatically increases on January 1 of each year during the term of the 2018 ESPP by the lesser of 1,071,000 shares, 1% of the total number of shares of our capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by our Board of Directors.

Our Audit Committee has the primary responsibility for the review, approval and oversight of any “related party transaction,” which is any transaction, arrangement or relationship (or series of similar transactions, arrangements, or relationships) in which we are, were or will be a participant and the amount involved exceeds $120,000, and in which the related person has, had or will have a direct or indirect material interest. We have adopted a written related party transaction policy under which our management is required to submit any related person transaction not previously approved or ratified by our Audit Committee to our Audit Committee. In approving or rejecting the proposed transactions, our Audit Committee will take into account all of the relevant facts and circumstances available.

The following is a description of transactions since January 1, 2022, to which we have been a party in which the amount involved exceeded $120,000 and in which any of our executive officers, directors or beneficial holders of more than 5% of our capital stock had or will have a direct or indirect material interest, other than compensation arrangements which are elsewhere in this proxy statement:

We and Gilead, a beneficial holder of more than 5% of our capital stock, are parties to the following agreements:

In October 2021, we and BVF entered into an agreement (the BVF Agreement) under which BVF agreed to fund the discovery and development of compounds for the treatment of inflammatory diseases (the Program) by providing us with $15 million in three non-refundable payments. In return, we are obligated to perform research and development

activities in the Program, to make contingent payments upon the achievement of certain clinical and regulatory milestones of up to $72.5 million or $160.0 million depending on whether the program is solely developed by us or as part of the collaboration with Gilead. We must also pay mid- to high-single digit royalties based on net sales of products generated by the Program. The agreement also provides BVF with the option to provide an additional $10 million in funding for the Program in exchange for an increase in the royalty rate.

One son of Terry Rosen, Ph.D., our Chief Executive Officer and member of our Board of Directors, has been employed by us since February 2016, currently in the capacity of Research Fellow. In 2022, he earned approximately $227,800 in annual salary and other cash compensation. In 2022 he was also granted an option to purchase 1,100 shares of common stock with an exercise price of $33.03 per share. The grant date fair value of the option award, computed in accordance with FASB ASC Topic 718 was $24,581. For the same year, he was granted restricted stock units to acquire 550 shares of common stock with a grant date fair value of $18,167 and received other benefits consistent with other employees serving in the same capacity.

Another son of Terry Rosen, Ph.D. has been employed by us since November 2020, currently in the capacity of Senior Scientist. In 2022, he earned approximately $177,700 in annual salary and other cash compensation. In 2022 he was also granted an option to purchase 850 shares of common stock with an exercise price of $33.03 per share. The grant date fair value of the option award, computed in accordance with FASB ASC Topic 718 was $18,995. For the same year, he was granted restricted stock units to acquire 700 shares of common stock with a grant date fair value of $22,563 and received other benefits consistent with other employees serving in the same capacity.

The SEC has adopted rules that permit companies and intermediaries (e.g., brokers) to satisfy the delivery requirements for Notices of Internet Availability of Proxy Materials or other Annual Meeting materials with respect to two or more stockholders sharing the same address by delivering a single Notice of Internet Availability of Proxy Materials or other Annual Meeting materials addressed to those stockholders. This process, which is commonly referred to as “householding,” potentially means extra convenience for stockholders and cost savings for companies.

This year, a number of brokers with account holders who are Arcus Biosciences, Inc. stockholders may be “householding” Arcus’s proxy materials. A single Notice of Internet Availability of Proxy Materials may be delivered to multiple stockholders sharing an address unless contrary instructions have been received from the affected stockholders. Once you have received notice from your broker that they will be “householding” communications to your address, “householding” will continue until you are notified otherwise or until you revoke your consent. If, at any time, you no longer wish to participate in “householding” and would prefer to receive a separate Notice of Internet Availability of Proxy Materials, please notify your broker or Arcus Biosciences, Inc. Direct your written request to Arcus Biosciences, Inc., Attention: Corporate Secretary, 3928 Point Eden Way, Hayward, CA 94545, or at (510) 694-6200. Stockholders who currently receive multiple copies of the Notices of Internet Availability of Proxy Materials at their addresses and would like to request “householding” of their communications should contact their brokers.

The Board of Directors knows of no other matters that will be presented for consideration at the Annual Meeting. If any other matters are properly brought before the meeting, it is the intention of the persons named in the accompanying proxy to vote, to the extent permitted by SEC rules, on such matters in accordance with their best judgment.

A copy of Arcus Biosciences, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2022 is available without charge upon written request to: Corporate Secretary, Arcus Biosciences, Inc., 3928 Point Eden Way, Hayward, CA 94545.

ARCUS BIOSCIENCES, INC. 3928 POINT EDEN WAY HAYWARD, CA 94545 VOTE BY INTERNET Before The Meeting - Go to www.proxyvote.com or scan the QR Barcode above Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 p.m. Eastern Time on June 14, 2023. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. During The Meeting - Go to www.virtualshareholdermeeting.com/RCUS2023 You may attend the meeting via the Internet and vote during the meeting. Have the information that is printed in the box marked by the arrow available and follow the instructions. VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 p.m. EasternTime on June 14, 2023. Have your proxy card in hand when you call and then follow the instructions. VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: The Board of Directors recommends you vote FOR the following proposals: 1. Election of Directors - Nominees: 1a. David Lacey, M.D. 1b. Juan CarlosJaen, Ph.D., Merdad Parsey, M.D., Ph.D., NicoleLambert; 2. To ratify the selection by the AuditCommittee of the Board of Directors of Ernst &Young LLP as the independent registered public accounting firm of Arcus Biosciences for its fiscal year ending December 31, 2023; and 3. To approve, on an advisory basis, the compensation of Arcus Biosciences' named executive officers, as disclosed in the Proxy Statement. Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer.


Filed by the Registrant		
Filed by a Party other than the Registrant		


MEETING AGENDA

Proposal No.	Proposal	Board Vote Recommendation

1	To elect the Board of Directors’ four nominees to hold office as Class II directors until the 2026 Annual Meeting of Stockholders and until their successors are duly elected and qualified.	For each Arcus director nominee

2	To ratify the selection by the Audit Committee of the Board of Directors of Ernst & Young LLP as the independent registered public accounting firm of Arcus for its fiscal year ending December 31, 2023.	For

3	To approve, on an advisory basis, the compensation of Arcus’s named executive officers, as disclosed in this Proxy Statement.	For


Board Diversity Matrix
Total number of directors	12
	Female	Male
Part I: Gender identity
Directors	4	8
Part II: Demographic background
Hispanic or Latinx	0	2
Asian	0	1
White	4	6
Other	0	1(1)
Two or more races or ethnicities	0	2
LGBTQ+	2


	Fiscal Year Ended
	2022		2021
Audit Fees (1)	$	1,861	$	1,880
Audit-related Fees		-		-
Tax Fees (2)		72		26
All Other Fees (3)		4		2
Total Fees	$	1,937	$	1,908


Name of Beneficial Owners	Shares Owned		Shares that May be Acquired Within 60 days		Total Shares Beneficially Owned		Percentage of Beneficial Ownership
5% Stockholders (other than Directors or Named Executive Officers):
Gilead Sciences, Inc. (1)		13,813,029		18,063,860		31,876,889		35.0	%
BlackRock, Inc. (2)		9,389,048		-		9,389,048		12.9	%
The Vanguard Group (3)		4,373,177		-		4,373,177		6.0	%
Directors and Named Executive Officers:
Terry Rosen, Ph.D. (4)		4,309,017		754,626		5,063,643		6.9	%
Robert C. Goeltz II		11,566		237,024		248,590	*
Juan Carlos Jaen, Ph.D. (5)		1,440,498		478,573		1,919,071		2.6	%
Jennifer Jarrett		145,709		1,172,156		1,317,865		1.8	%
Dimitry Nuyten, M.D., Ph.D.		-		36,971		36,971	*
Kathryn Falberg (6)		188,610		63,100		251,710	*
Linda Higgins, Ph.D.		-		-		-	*
Yasunori Kaneko, M.D. (7)		899,655		28,100		927,755		1.3	%
David Lacey, M.D.		38,352		67,711		106,063	*
Nicole Lambert		1,567		12,056		13,623	*
Patrick Machado, JD		6,000		78,100		84,100	*
Merdad Parsey, M.D., Ph.D.		-		-		-	*
Andrew Perlman, M.D., Ph.D.		8,525		30,433		38,958	*
Antoni Ribas, M.D., Ph.D. (8)		19,603		83,100		102,703	*
All current directors and executive officers as a group (15 persons) (9)		7,097,686		3,479,950		10,577,636		13.8	%


		Page
QUESTIONS AND ANSWERS ABOUT THESE PROXY MATERIALS AND VOTING		1
PROPOSAL 1 ELECTION OF DIRECTORS		7
	Nominees for Election as Class II Directors at the Annual Meeting for a Three-Year Term	8
	Class III Directors Continuing in Office until the 2024 Annual Meeting	9
	Class I Directors Continuing in Office until the 2025 Annual Meeting	10
	Director Diversity	12
CORPORATE GOVERNANCE		13
	Independence of The Board of Directors	13
	Board Leadership Structure	13
	Role of the Board in Risk Oversight	13
	Meetings of The Board of Directors	13
	Information Regarding Committees of the Board of Directors	14
	Audit Committee	14
	Compensation Committee	15
	Nominating and Corporate Governance Committee	16
	Stockholder Communications with The Board of Directors	17
	Code of Conduct and Ethics	18
	Corporate Governance Guidelines	18
	Hedging Policy	18
PROPOSAL 2 RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		19
	Principal Accountant Fees and Services	19
	Pre-Approval Policies and Procedures	19
PROPOSAL 3 ADVISORY VOTE ON EXECUTIVE COMPENSATION		20
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT		21
EXECUTIVE OFFICERS		23
EXECUTIVE COMPENSATION		23
	Compensation Discussion and Analysis	24
	Summary Compensation Table	30
	2022 Grants of Plan-Based Awards	31
	Outstanding Equity Awards at 2022 Fiscal Year End	32
	2022 Option Exercises and Stock Vested	33
	Severance and Change in Control Benefits	33
	CEO Pay Ratio	34
	Pay versus Performance	35
	Compensation Committee Interlocks and Insider Participation	37
COMPENSATION OF DIRECTORS		38
EQUITY COMPENSATION PLAN INFORMATION		40
RELATED PERSON TRANSACTIONS		41
	Policies and Procedures for Related Party Transactions	41
	Certain Related-Person Transactions	41
HOUSEHOLDING OF PROXY MATERIALS		43
OTHER MATTERS		44


NAME	CLASS	AGE	POSITION HELD WITH THE COMPANY
Terry Rosen, Ph.D.	III	64	Chief Executive Officer, Director and Chairman
Juan Carlos Jaen, Ph.D.	II	65	President and Director
Jennifer Jarrett	III	52	Chief Operating Officer and Director
Kathryn Falberg(1)(2)	III	62	Director
Linda Higgins, Ph.D.	III	60	Director
Yasunori Kaneko, M.D.(1)(2)	I	69	Director
David Lacey, M.D.(2)(3)	II	70	Director
Nicole Lambert(3)	II	49	Director
Patrick Machado, JD(3)	I	59	Director
Merdad Parsey, M.D., Ph.D.	II	60	Director
Andrew Perlman, M.D., Ph.D.(1)	I	75	Director
Antoni Ribas, M.D., Ph.D.	I	57	Director


Name	Audit	Compensation	Nominating and Corporate Governance
Kathryn Falberg	x*	x	-
Yasunori Kaneko, M.D.	x	x*	x*
David Lacey, M.D.	-	-	x
Patrick Machado, J.D.	-	-	x
Andrew Perlman, M.D., Ph.D.	x	-	-
Total meetings in fiscal 2022	7	6	3


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Syndax Pharmaceuticals Inc.	Turning Point Therapeutics, Inc.	Xencor Inc.
Zogenix, Inc.


Name and Title	2022 Bonus Target (%)	2022 Bonus Target ($)		Bonus Payout for 2022 Performance ($)
Terry Rosen, Ph.D., Chief Executive Officer	75%		300,000		400,000	(1)
Robert C. Goeltz, II, Chief Financial Officer	40%		188,000		270,000
Juan Carlos Jaen, Ph.D., President	50%		275,000		370,000
Jennifer Jarrett, Chief Operating Officer	50%		275,000		370,000
Dimitry Nuyten, M.D., Ph.D., Chief Medical Officer (2)	45%		101,250		160,000


		Salary			Bonus			Stock Awards(1)		Stock Options(2)		Non-Equity Incentive Plan Compensation(3)		All Other Compensation			Total
Name and Principal Position	Year	($)			($)			($)		($)		($)		($)			($)
Terry Rosen, Ph.D.	2022		350,000	(4)		-			2,146,950		6,145,370		400,000		6,112			9,048,432
Chief Executive Officer	2021		366,875	(4)		300,000	(5)		1,652,850		6,896,008		-		267,606	(6)		9,483,339
and Director	2020		325,625	(4)		-			3,005,000		2,351,475		-		3,564			5,685,664
Robert C. Goeltz, II	2022		470,000			-			511,965		1,396,675		270,000		5,294			2,653,934
Chief Financial Officer	2021		435,000			-			459,125		1,847,145		175,000		2,810			2,919,080
	2020		175,000			-			-		3,507,000		75,000		338			3,757,338
Juan Carlos Jaen, Ph.D.	2022		550,000			-			1,032,188		2,793,350		370,000		11,144			4,756,682
President and Director	2021		535,000			-			711,644		2,863,075		300,000		5,564			4,415,283
	2020		515,000			-			1,652,750		1,343,700		275,000		3,564			3,790,014
Jennifer Jarrett (7)	2022		550,000			-			1,032,188		2,793,350		370,000		5,294			4,750,832
Chief Operating Officer	2021		525,000			-			14,692,000		-		300,000		3,242			15,520,242
and Director	2020		125,000			-			90,150		10,578,439		75,000		28,182			10,896,771
Dimitry Nuyten, M.D., Ph.D. (8)	2022		225,000			-			1,105,000		3,114,689		160,000		337			4,605,026
Chief Medical Officer


			Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1)						All Other Stock Awards: Number of Shares of Stock or Units		All Other Option Awards: Number of Securities Underlying Options		Exercise or Base Price of Option Award		Grant-Date Fair Value of Stock and Option Award (2)
			Threshold		Target		Maximum
Name	Award Type	Grant Date	($)		($)		($)		(#)		(#)		($ per share)		($)
Terry Rosen, Ph.D.	Option	3/8/2022		-		-		-		-		275,000		33.03		6,145,370
	RSU	3/8/2022		-		-		-		65,000		-		-		2,146,950
	Bonus	N/A		-		300,000		-		-		-		-		-
Robert C. Goeltz, II	Option	3/8/2022		-		-		-		-		62,500		33.03		1,396,675
	RSU	3/8/2022		-		-		-		15,500		-		-		511,965
	Bonus	N/A		-		188,000		-		-		-		-		-
Juan Carlos Jaen,	Option	3/8/2022		-		-		-		-		125,000		33.03		2,793,350
Ph.D.	RSU	3/8/2022		-		-		-		31,250		-		-		1,032,188
	Bonus	N/A		-		275,000		-		-		-		-		-
Jennifer Jarrett	Option	3/8/2022		-		-		-		-		125,000		33.03		2,793,350
	RSU	3/8/2022		-		-		-		31,250		-		-		1,032,188
	Bonus	N/A		-		275,000		-		-		-		-		-
Dimitry Nuyten,	Option	8/23/2022		-		-		-		-		170,000		26.00		3,114,689
M.D., Ph.D.	RSU	8/23/2022		-		-		-		42,500		-		-		1,105,000
	Bonus	N/A		-		101,250		-		-		-		-		-


		Option Awards									Stock Awards
		Number of Securities Underlying Unexercised Options					Option Exercise		Option		Number of Shares or Units That Have Not			Market Value of Shares or Units That Have Not
	Grant	Exercisable			Unexercisable		Price		Expiration		Yet Vested			Yet Vested(1)
Name	Date	(#)			(#)		($)		Date		(#)			($)
Terry Rosen, Ph.D.	1/16/2019		195,833	(2)		4,167		10.36	1/15/2029			-			-
	1/17/2020		255,208	(3)		94,792		10.23	1/16/2030			-			-
	1/19/2021		134,167	(3)		145,833		36.73	1/18/2031			-			-
	3/8/2022		63,021	(3)		211,979		33.03	3/7/2032			-			-
	6/4/2020		-			-		-		-		50,000	(8)		1,034,000
	1/19/2021		-			-		-		-		22,500	(9)		465,300
	3/8/2022		-			-		-		-		48,750	(9)		1,008,150
Robert C. Goeltz, II	8/3/2020		145,833	(4)		104,167		21.06	8/2/2030			-			-
	1/19/2021		35,938	(3)		39,062		36.73	1/18/2031			-			-
	3/8/2022		14,323	(3)		48,177		33.03	3/7/2032			-			-
	1/19/2021		-			-		-		-		6,250	(9)		129,250
	3/8/2022		-			-		-		-		11,625	(9)		240,405
Juan Carlos Jaen,	1/16/2019		195,833	(2)		4,167		10.36	1/15/2029			-			-
Ph.D.	1/17/2020		145,833	(3)		54,167		10.23	1/16/2030			-			-
	1/19/2021		55,703	(3)		60,547		36.73	1/18/2031			-			-
	3/8/2022		28,646	(3)		96,354		33.03	3/7/2032			-			-
	6/4/2020		-			-		-		-		27,500	(8)		568,700
	1/19/2021		-			-		-		-		9,687	(9)		200,327
	3/8/2022		-			-		-		-		23,437	(9)		484,677
Jennifer Jarrett	3/15/2017		181,166	(5)		-		1.23	3/14/2027			-			-
	1/4/2018		107,694	(5)		-		5.39	1/3/2028			-			-
	6/8/2018		161,114	(5)		-		16.95	6/7/2028			-			-
	1/14/2019		35,000	(5)		-		9.07	1/13/2029			-			-
	6/6/2019		35,000	(5)		-		7.99	6/5/2029			-			-
	6/4/2020		14,000	(5)		-		30.05	6/3/2030			-			-
	10/1/2020		487,500	(6)		412,500		17.17	9/30/2030			-			-
	3/8/2022		28,646	(3)		96,354		33.03	3/7/2032						-
	1/19/2021		-			-		-		-		200,000	(10)		4,136,000
	3/8/2022		-			-		-		-		23,437	(9)		484,677
Dimitry Nuyten,	8/23/2022		14,167	(7)		155,833		26.00	8/22/2032			-			-
M.D., Ph.D.	8/23/2022		-			-		-		-		42,500			878,900


	Stock Awards
Name	Number of shares acquired on vesting (#)		Value realized on vesting (1) ($)
Terry Rosen, Ph.D.		52,500		1,394,000
Robert C. Goeltz, II		7,000		217,000
Juan Carlos Jaen, Ph.D.		26,407		690,192
Jennifer Jarrett		107,813		3,021,453


	Change in Control										No Change in Control
	Cash Severance		Bonus		Health Benefits		Equity Acceleration (1)		Total		Cash Severance		Bonus		Health Benefits		Total
Name	($)		($)		($)		($)		($)		($)		($)		($)		($)
Terry Rosen, Ph.D.		400,000		300,000		26,663		3,541,030		4,267,693		400,000		300,000		26,663		726,663
Robert C. Goeltz, II		352,500		188,000		28,521		369,655		938,676		352,500		188,000		28,521		569,021
Juan Carlos Jaen, Ph.D.		550,000		275,000		26,663		1,862,753		2,714,416		550,000		275,000		26,663		851,663
Jennifer Jarrett		412,500		275,000		16,734		6,068,552		6,772,786		412,500		275,000		16,734		704,234
Dimitry Nuyten, M.D., Ph.D.		405,000		243,000		18,511		878,900		1,545,411		405,000		243,000		18,511		666,511


	Prior to June 14, 2022		Subsequent to June 14, 2022
Retainer for each non-employee member of the Board:	$	40,000	$	45,000
Additional retainer for Lead Independent Director:		5,000		5,000
Additional retainer for Chair of Audit Committee:		20,000		20,000
Additional retainer for Chair of Compensation Committee:		15,000		15,000
Additional retainer for Chair of Nominating and Corporate Governance Committee:		10,000		10,000
Additional retainer for non-Chair members of Audit Committee:		10,000		10,000
Additional retainer for non-Chair members of Compensation Committee:		7,500		7,500
Additional retainer for non-Chair member of Nominating and Corporate Governance Committee:		5,000		5,000


	Fees Earned or Paid in Cash		Stock Awards(1)		Options Awards(2)		All Other Compensation (3)		Total
Name	($)		($)		($)		($)		($)
Kathryn Falberg		66,304		84,542		241,954		-		392,799
Yasunori Kaneko, M.D.		77,374		84,542		241,954		-		403,869
David Lacey, M.D.		50,234		84,542		241,954		40,000		416,729
Nicole Lambert		40,234		84,542		241,954		-		366,729
Patrick Machado, J.D.		45,234		84,542		241,954		-		371,729
Andrew Perlman, M.D., Ph.D.		45,234		84,542		241,954		-		371,729
Antoni Ribas, M.D. Ph.D.		40,234		84,542		241,954		20,000		386,729


Name	Number of Shares Subject to Option Awards		Number of Shares Subject to Restricted Stock Units
Kathryn Falberg		79,900		4,100
Yasunori Kaneko, M.D.		44,900		4,100
David Lacey, M.D.		85,900		4,100
Nicole Lambert		38,500		7,233
Patrick Machado, J.D.		94,900		4,100
Andrew Perlman, M.D., Ph.D.		51,900		5,600
Antoni Ribas, M.D., Ph.D.		99,900		4,100


	Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants or Rights (a)		Weighted Average Exercise Price of Outstanding Options, Warrants or Rights (b)			Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities reflected in Column (a)) (c)
Equity Compensation Plans	(#)		($ per share)			(#)
Approved by Stockholders (1)		8,044,736	$	16.20	(2)		3,569,702
Not Approved by Stockholders(3)		5,234,947	$	24.87	(4)		3,206,569
Total		13,279,683	$	19.62			6,776,271