pd-20230502

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________________________________________________________

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934

_____________________________________________________________________________________

Filed by the Registrant ý Filed by a Party other than the Registrant o

Check the appropriate box:


o			Preliminary Proxy Statement
o			Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
ý			Definitive Proxy Statement
o			Definitive Additional Materials
o			Soliciting Material under §240.14a-12

_____________________________________________________________________________________

PagerDuty, Inc.

(Name of Registrant as Specified In Its Charter)

____________________________________________________________________________________________________

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check all boxes that apply):


ý			No fee required.
o			Fee paid previously with preliminary materials.
o			Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.

Dear Stockholder,

We are pleased to invite you to attend the 2023 Annual Meeting of Stockholders (the “Annual Meeting”) of PagerDuty, Inc. (“PagerDuty” or the “Company”), to be held on Wednesday, June 14, 2023, at 2:00 p.m. Pacific Time. The Annual Meeting will be conducted virtually via live audio webcast. You will be able to vote and submit your questions during the meeting by visiting www.virtualshareholdermeeting.com/PD2023 (please have your notice or proxy card in hand when you visit the website). You will not be able to attend the Annual Meeting in person.

The attached Notice of Annual Meeting of Stockholders and Proxy Statement contain details of the business to be conducted at the Annual Meeting.



			YOUR VOTE IS IMPORTANT. Whether or not you attend the Annual Meeting, it is important that your shares be represented and voted at the Annual Meeting. Therefore, we urge you to promptly vote and submit your proxy via the Internet, by phone or by mail.

On behalf of the Company's Board of Directors, thank you for your support of and interest in PagerDuty.

Sincerely,

Jennifer Tejada

CEO and Chair of the Board of Directors

Notice of Annual Meeting of Stockholders

Meeting Details


DATE AND TIME Wednesday, June 14, 2023 at 2:00 p.m. Pacific Time	PLACE www.virtualshareholdermeeting.com/PD2023.	RECORD DATE April 18, 2023 (the “Record Date”)

Items of Business


1			To elect the Board of Directors’ nominees, Jennifer Tejada, Sameer Dholakia and William Losch, as Class I directors to hold office until the 2026 Annual Meeting of Stockholders.
2			To ratify the selection of Ernst & Young LLP by the Audit Committee of the Board of Directors as the independent registered public accounting firm of the Company for its fiscal year ending January 31, 2024.
3			To conduct an advisory, non-binding vote to approve the compensation of our named executive officers.
4			To conduct any other business properly brought before the meeting.

YOUR VOTE IS IMPORTANT. Whether or not you plan to attend the Annual Meeting, we urge you to submit your vote via the Internet, telephone or mail as soon as possible to ensure your shares are represented. For additional instructions for each of these voting options, please refer to the proxy card. Returning the proxy does not deprive you of your right to attend the Annual Meeting and to vote your shares at the Annual Meeting. The Proxy Statement explains proxy voting and the matters to be voted on in more detail.

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting to be Held on June 14, 2023. Our proxy materials, including the Proxy Statement and Annual Report to Stockholders, are being made available on or about May 2, 2023 at the following website: www.proxyvote.com, as well as on our investor relations webpage at https://investor.pagerduty.com in the “Financials” section under “SEC Filings.” We are providing access to our proxy materials over the Internet under the rules adopted by the U.S. Securities and Exchange Commission.

By Order of the Board of Directors,


Shelley Webb SVP, General Counsel and Secretary						San Francisco, California May 2, 2023



			Your vote is important. To vote your shares, please follow the instructions in the Notice of Internet Availability of Proxy Materials, which is being mailed to you on or about May 2, 2023.

Table of Contents


QUESTIONS AND ANSWERS ABOUT THESE PROXY MATERIALS AND VOTING			1
BOARD OF DIRECTORS AND CORPORATE GOVERNANCE			6
PROPOSAL 1 - ELECTION OF DIRECTORS			22
PROPOSAL 2 - RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			23
PROPOSAL 3 - ADVISORY, NON-BINDING VOTE TO APPROVE THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS			26

AUDIT COMMITTEE REPORT			25
EXECUTIVE OFFICERS			27
COMPENSATION DISCUSSION & ANALYSIS			28
EXECUTIVE COMPENSATION			53
ADDITIONAL COMPENSATION MATTERS			68
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT			75
TRANSACTIONS WITH RELATED PERSONS AND INDEMNIFICATION			77
OTHER MATTERS			80

TABLE OF CONTENTS

Proxy Statement for the 2023
Annual Meeting of Stockholders

This proxy statement (this “Proxy Statement”) and form of proxy are being provided to you in connection with the solicitation of proxies by our Board of Directors (the “Board”) for use at our 2023 Annual Meeting of Stockholders (the “Annual Meeting”), and any postponements, adjournments or continuations thereof. The Annual Meeting will be held on June 14, 2023 at 2:00 p.m. Pacific Time, via live audio webcast at www.virtualshareholdermeeting.com/PD2023. Stockholders of record as of April 18, 2023 (the “Record Date”) are invited to attend the Annual Meeting and are entitled to vote on the proposals described in this Proxy Statement.

The Notice of Internet Availability of Proxy Materials (the “Notice”) containing instructions on how to access this Proxy Statement and our Annual Report on Form 10-K for the fiscal year ended January 31, 2023 (the “Annual Report”) is first being mailed on or about May 2, 2023 to all stockholders entitled to vote at the Annual Meeting.

Questions and Answers About These Proxy Materials and Voting

The information provided in the “question and answer” format below addresses certain frequently asked questions but is not intended to be a summary of all matters contained in this Proxy Statement. Please read the entire Proxy Statement carefully before voting your shares.

WHY DID I RECEIVE A NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS ON THE INTERNET?

Our Board is providing these proxy materials to you in connection with our Board’s solicitation of proxies for use at the Annual Meeting, which will take place on June 14, 2023. Stockholders are invited to attend the Annual Meeting and are requested to vote on the proposals described in this Proxy Statement.

All stockholders will have the ability to access the proxy materials via the Internet, including this Proxy Statement and our Annual Report, as filed with the Securities and Exchange Commission (the “SEC”) beginning on May 2, 2023. The Notice includes information on how to access the proxy materials, how to submit your vote over the Internet or by phone, or how to request a paper copy of the proxy materials. This Proxy Statement and the Annual Report are available at www.proxyvote.com. If you receive a Notice by mail, you will not receive a printed copy of the proxy materials in the mail unless you specifically request these materials.

WHO CAN VOTE AT THE ANNUAL MEETING?

Holders of our common stock at the close of business on April 18, 2023, the record date for the Annual Meeting (the “Record Date”), are entitled to notice of and to vote at the Annual Meeting. Each stockholder is entitled to one vote for each share of our common stock held as of the Record Date. As of the Record Date, there were 92,089,235 shares of common stock outstanding and entitled to vote. Stockholders are not permitted to cumulate votes with respect to the election of directors.

WHAT IS THE DIFFERENCE BETWEEN HOLDING SHARES AS A STOCKHOLDER OF RECORD
AND AS A BENEFICIAL OWNER?

Stockholder of Record: Shares Registered in Your Name. If, at the close of business on the Record Date, your shares were registered directly in your name with American Stock Transfer and Trust Company, LLC, our transfer agent, then you are considered the stockholder of record with respect to those shares. As the stockholder of record, you have the right to grant your voting proxy directly to the individuals listed on the proxy card or to vote on your own behalf at the Annual Meeting.

Beneficial Owners: Shares Registered in the Name of a Broker, Bank or Other Nominee. If, at the close of business on the Record Date, your shares were held in a stock brokerage account or by a bank or other nominee on your behalf, then you are considered the beneficial owner of shares held in “street name.” As the beneficial owner, you have the right to direct your broker, bank or other nominee how to vote your shares by following the voting instructions your broker, bank or other nominee provides. If you do not provide your broker, bank or other nominee with instructions on how to vote your shares, your broker, bank or other nominee may, in its discretion, vote your shares with respect to routine matters but may not vote your shares with respect to any non-routine matters. For additional information, see “What if I do not specify how my shares are to be voted?” below.


PagerDuty			1			2023 Proxy Statement

TABLE OF CONTENTS

DO I HAVE TO DO ANYTHING IN ADVANCE IF I PLAN TO ATTEND THE ANNUAL MEETING?

The Annual Meeting will be a virtual meeting of stockholders, which will be conducted via live audio webcast. You are entitled to participate in the Annual Meeting only if you were a holder of our common stock as of the close of business on the Record Date or if you hold a valid proxy for the Annual Meeting.

You will be able to attend the Annual Meeting and submit your questions during the Annual Meeting by visiting www.virtualshareholdermeeting.com/PD2023. You also will be able to vote your shares electronically at the Annual Meeting.

To participate in the Annual Meeting, you will need the control number included on your Notice or proxy card. The live audio webcast will begin promptly at 2:00 p.m. Pacific Time. We encourage you to access the meeting prior to the start time. Online check-in will begin at 1:45 p.m. Pacific Time, and you should allow ample time for the check-in procedures.

HOW CAN I GET HELP IF I HAVE TROUBLE CHECKING IN OR LISTENING TO THE MEETING ONLINE?

If you encounter any difficulties accessing the virtual meeting during the check-in or meeting time, please call the technical support number that will be posted on the Virtual Shareholder Meeting log-in page.

WHAT AM I VOTING ON?

There are three matters scheduled for a vote:

•Election of three Class I directors (Proposal 1);

•Ratification of the selection of Ernst & Young LLP by the Audit Committee of the Board as independent registered public accounting firm of the Company for its fiscal year ending January 31, 2024 (Proposal 2); and

•An advisory, non-binding vote to approve the compensation of our named executive officers (Proposal 3).

WHAT IF ANOTHER MATTER IS PROPERLY BROUGHT BEFORE THE MEETING?

The Board 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 on those matters in accordance with their best judgment.

HOW DO I VOTE AND WHAT ARE THE VOTING DEADLINES?

Stockholder of Record: Shares Registered in Your Name. If you are a stockholder of record, you can vote in one of the following ways:

•You may vote via the Internet. To vote via the Internet, go to www.proxyvote.com to complete an electronic proxy card. You will be asked to provide the control number from the proxy card you receive. Your vote must be received by 11:59 p.m. Eastern Time on June 13, 2023 to be counted. If you vote via the Internet, you do not need to return a proxy card by mail.

•You may vote by telephone. To vote by telephone, dial 1-800-690-6903 (the call is toll-free in the United States and Canada; toll charges apply to calls from other countries) and follow the recorded instructions. You will be asked to provide the control number from the proxy card. Your vote must be received by 11:59 p.m. Eastern Time on June 13, 2023 to be counted. If you vote by telephone, you do not need to return a proxy card by mail.

•You may vote by mail. To vote by mail using the proxy card (if you requested paper copies of the proxy materials to be mailed to you), you need to complete, date and sign the proxy card and return it promptly by mail in the envelope provided so that it is received no later than June 13, 2023. The persons named in the proxy card will vote the shares you own in accordance with your instructions on the proxy card you mail.

•You may vote at the Annual Meeting. To vote at the Annual Meeting, following the instructions at www.virtualshareholdermeeting.com/PD2023 (have your Notice or proxy card in hand when you visit the website).

Beneficial Owners: Shares Registered in the Name of a Broker, Bank or Other Nominee. If you are the beneficial owner of shares held of record by a broker, bank or other nominee, you will receive voting instructions from your broker, bank or other nominee. You must follow the voting instructions provided by your broker, bank or other nominee in order to instruct your broker, bank or other nominee how to vote your shares. The availability of Internet and telephone voting options will depend on the voting process of your broker, bank or other nominee.


PagerDuty			2			2023 Proxy Statement

TABLE OF CONTENTS

CAN I CHANGE MY VOTE OR REVOKE MY PROXY?

Stockholder of Record: Shares Registered in Your Name. If you are a stockholder of record, you may revoke your proxy or change your proxy instructions at any time before your proxy is voted at the Annual Meeting by:

•entering a new vote via the Internet or by telephone;

•signing and returning a new proxy card with a later date;

•delivering a written revocation to our Secretary at PagerDuty, Inc., 600 Townsend St. Suite 200, San Francisco, CA 94103, by 11:59 p.m. Eastern Time on June 13, 2023; or

•following the instructions at www.virtualshareholdermeeting.com/PD2023.

Beneficial Owners: Shares Registered in the Name of a Broker, Bank or Other Nominee. If you are the beneficial owner of your shares, you must contact the broker, bank or other nominee holding your shares and follow their instructions to change your vote or revoke your proxy.

WHAT IF I DO NOT SPECIFY HOW MY SHARES ARE TO BE VOTED?

Stockholder of Record: If you are a stockholder of record and do not vote by completing your proxy card, by telephone, through the Internet, or at the 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 the three nominees as Class I directors, “FOR” the ratification of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending January 31, 2024, and “FOR” the approval, on an advisory, non-binding basis, of the compensation of our named executive officers, as disclosed in this Proxy Statement. 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 using his or her best judgment.

Beneficial Owners: Broker non-votes occur when shares held by a broker for a beneficial owner are not voted either because (i) the broker did not receive voting instructions from the beneficial owner or (ii) the broker lacked discretionary authority to vote the shares. Abstentions represent a stockholder’s affirmative choice to decline to vote on a proposal, and occur when shares present at the meeting are marked “abstain.” Broker non-votes and abstentions are counted for purposes of determining whether a quorum is present.

A broker has discretionary authority to vote shares held for a beneficial owner on “routine” matters without instructions from the beneficial owner of those shares. On the other hand, absent instructions from the beneficial owner of such shares, a broker is not entitled to vote shares held for a beneficial owner on “non-routine” matters. Brokers, banks or other nominees will not have discretionary voting power to vote your shares without your voting instructions on any of the items being considered at the Annual Meeting, except for Proposal 2 (ratification of Ernst & Young LLP as our independent registered public accounting firm).

If you are a beneficial owner of shares held in street name, in order to ensure your shares are voted in the way you would prefer, you must provide voting instructions to your broker, bank or other agent by the deadline provided in the materials you receive from your broker, bank or other agent.

HOW ARE VOTES COUNTED?

Votes will be counted by the inspector of election appointed for the Annual Meeting, who will separately count, for the proposal to elect directors, votes “For” and “Withhold” and broker non-votes; and, with respect to other proposals, votes “For” and “Against,” abstentions and, if applicable, broker non-votes. Broker non-votes have no effect and will not be counted towards the vote total for any proposal.


PagerDuty			3			2023 Proxy Statement

TABLE OF CONTENTS

HOW MANY VOTES ARE NEEDED TO APPROVE EACH PROPOSAL?

The following table summarizes the minimum vote needed to approve each proposal and the effect of abstentions and broker non-votes.

Proposal Number

Proposal Description

Vote Required
for Approval

Effect of Abstentions

Effect of Broker Non-Votes

Election of Directors

Nominees receiving the most “For” votes; withheld votes will have no effect

No effect

Ratification of the selection of Ernst & Young LLP as the Company’s independent registered public accounting firm for the fiscal year ending January 31, 2024.

“For” votes from the holders of a majority of shares present or represented by proxy and entitled to vote on the matter

Against

Not applicable(1)

An advisory, non-binding vote to approve the compensation of our named executive officers

“For” votes from the holders of a majority of shares present or represented by proxy and entitled to vote on the matter

Against

No effect

(1)This proposal is considered to be a “routine” matter under the New York Stock Exchange (the “NYSE”) rules. Accordingly, if you hold your shares in street name and do not provide voting instructions to your broker, bank or other agent that holds your shares, your broker, bank or other agent has discretionary authority under NYSE rules to vote your shares on this proposal.

WHAT IS THE QUORUM REQUIREMENT?

A quorum of stockholders is necessary to hold a valid meeting. A quorum will be present if stockholders holding a majority of the outstanding shares entitled to vote are present virtually during the virtual meeting or represented by proxy. On the record date, there were 92,089,235 shares outstanding and entitled to vote. Thus, the holders of at least 46,044,618 shares must be present virtually or represented by proxy at the Annual 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 agent) or if you vote at the Annual Meeting. Abstentions and broker non-votes will be counted towards the quorum requirement. If there is no quorum, the holders of a majority of shares present virtually during the meeting or represented by proxy may adjourn the meeting to another date.

WHY A VIRTUAL-ONLY ONLINE MEETING?

Conducting the Annual Meeting virtually allows for remote participation and increases the opportunity for all stockholders to participate and communicate their views to a much wider audience. Stockholder rights are not affected. Additionally, we use software that verifies the identity of each participating stockholder and ensures during the question and answer portion of the meeting that they are granted the same rights they would have at an in-person meeting.

Our virtual Annual Meeting allows stockholders to submit questions and comments before and during the Annual Meeting. After the Annual Meeting, we will spend up to 15 minutes answering stockholder questions that comply with the rules of conduct for the Annual Meeting, which will be posted on the virtual Annual Meeting web portal. If we receive substantially similar questions, we will group such questions together and provide a single response to avoid repetition.

WHAT DOES IT MEAN IF I RECEIVE MORE THAN ONE NOTICE?

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 each of the Notices to ensure that all of your shares are voted.

I SHARE AN ADDRESS WITH ANOTHER STOCKHOLDER, AND WE RECEIVED ONLY ONE PAPER COPY OF THE PROXY MATERIALS. HOW MAY I OBTAIN AN ADDITIONAL COPY OF THE PROXY MATERIALS?

We have adopted an SEC-approved procedure called “householding.” Under this procedure, we will deliver only one copy of our Notice of Internet Availability of Proxy Materials, and for those stockholders that requested a paper copy of proxy materials in the mail, one copy of our Annual Report to stockholders and this Proxy Statement, to multiple stockholders who share the same address (if they appear to be members of the same family) unless we have received contrary instructions from


PagerDuty			4			2023 Proxy Statement

TABLE OF CONTENTS

an affected stockholder. Stockholders who participate in householding will continue to receive separate proxy cards if they received a paper copy of proxy materials in the mail. This procedure reduces our printing and mailing costs. Upon written or oral request, we will promptly deliver a separate copy of the proxy materials and annual report to any stockholder at a shared address to which we delivered a single copy of any of these documents. To receive a separate copy, or, if you are receiving multiple copies, to request that we only send a single copy of next year’s proxy materials and annual report, you may contact us as follows:

PagerDuty, Inc.

Attention: Secretary

600 Townsend St., Suite 200

San Francisco, CA 94103

(844) 800-3889

Stockholders who hold shares in street name may contact their brokerage firm, bank, broker-dealer or other nominee to request information about householding.

WHAT HAPPENS IF THE ANNUAL MEETING IS POSTPONED OR ADJOURNED?

Your proxy may be voted at the postponed or adjourned Annual Meeting. You will still be able to change your proxy until it is voted. Any adjournment of the Annual Meeting can be accessed at the same website listed above and you may vote at any postponed or adjourned Annual Meeting using the control number listed in your Notice or proxy card.

HOW CAN I FIND OUT THE RESULTS OF THE VOTING AT THE ANNUAL MEETING?

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.

WHO IS PAYING FOR THIS PROXY SOLICITATION?

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

WHEN ARE STOCKHOLDER PROPOSALS AND DIRECTOR NOMINATIONS DUE FOR NEXT YEAR’S
ANNUAL MEETING?

To be considered for inclusion in next year’s proxy materials, your proposal must be submitted in writing by January 3, 2024, to our Secretary at 600 Townsend St., Suite 200, San Francisco, California 94103, and you must comply with all applicable requirements of Rule 14a-8 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Pursuant to our amended and restated bylaws, 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 not later than the close of business on March 16, 2024 and no earlier than the close of business on February 15, 2024; provided, however, that if next year’s annual meeting is advanced more than 30 days prior to or delayed by more than 30 days after June 14, 2024, your proposal must be submitted not earlier than the close of business on the 120th day prior to such annual meeting and not later than the close of business on the 90th day prior to such annual meeting or the 10th day following the day on which public announcement of such meeting is first made. You are advised to review our amended and restated bylaws, which contain additional requirements about advance notice of stockholder proposals and director nominations.

In order for stockholders to give timely notice of director nominations at our 2024 annual meeting for inclusion on a universal proxy card under Rule 14a-19 of the Exchange Act (“Rule 14a-19”), notice must be submitted by the same deadlines as disclosed above which are set forth in our amended and restated bylaws and must also include the information in the notice required by our amended and restated bylaws and by Rule 14a-19(b)(2) and Rule 14a-19(b)(3) of the Exchange Act.


PagerDuty			5			2023 Proxy Statement

TABLE OF CONTENTS

Board of Directors and Corporate Governance

Our business is managed under the direction of our Board of Directors (the “Board”), which currently has nine members. Seven of our directors are independent within the meaning of the independence requirements of the New York Stock Exchange (the “NYSE”). Our Board is divided into three classes. Each class consists, as nearly as possible, of one-third of the total number of directors, and each class has a three-year term. Vacancies on the Board may be filled only by persons elected by a majority of the remaining directors. A director elected 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 three directors in the class whose term of office expires in 2023. Each of the nominees listed below is currently a director of the Company. Mr. Losch was first identified as a prospective director candidate by recommendation of members of our Board. If elected at the Annual Meeting, each of these nominees would serve until the 2026 annual meeting and until his or her successor has been duly elected and qualified, or, if sooner, until the director’s death, resignation or removal. It is the Company’s policy to encourage directors and nominees for director to attend the Annual Meeting. All current members of our Board at the time of the 2022 annual meeting of stockholders attended the 2022 annual meeting of stockholders, with the exception of Ms. Gomez and Mr. Gallimore.

Below is a summary of the primary experience, qualifications and skills that our director nominees and continuing directors bring to the Board:



Experience		Description	Number of Directors with the Experience

	Public Company CEO	Directors who have served as public company CEOs are important to us because they have the experience and perspective to analyze, shape, and oversee the execution of important operational and policy issues	nnnnnnnnn
	Global Experience	Global experience can provide valuable business and cultural perspectives regarding many important aspects of our business as we are a global organization with sales and other offices around the world	nnnnnnnnn
	Technology, Product, and Cybersecurity	Directors with deep insight in technology infrastructure, business products, and cybersecurity risks are particularly important to us given our focus on product innovation and expanding our service offerings	nnnnnnnnn
	Sales and Marketing	Experience building global sales, marketing, and brand-building in new markets and opportunities for innovation and disruption are important to us to grow our revenue	nnnnnnnnn
	Finance	Directors with significant expertise in corporate finance, financial accounting, financial strategy, and financial reporting are valuable to us in order to promote effective capital allocation, robust controls, and oversight	nnnnnnnnn
	Corporate Development, Strategy, and M&A	Experience in business development, corporate strategy, and mergers and acquisitions that includes skills in assessing and analyzing proposed acquisitions along with the Company’s strategy and long-term corporate development	nnnnnnnnn
	Human Capital Management / Talent / Inclusion and Diversity	Expertise in the implementation of a successful framework for workforce acquisition, management, and optimization, and aligning company culture that results in the attraction, development and retention of top candidates with diverse skills and backgrounds are important to us because our corporate culture is critical component of our success	nnnnnnnnn
	Scaling a SaaS Company	Directors with experience growing successful SaaS companies, reaching scale and maturity are important to us as we scale to become a $1B revenue company	nnnnnnnnn
	Governance, Risk, Regulatory, and Compliance	Experience in public company corporate governance, enterprise risk, privacy, compliance, regulatory, public policy, and creating long term sustainable value are extremely relevant to PagerDuty’s business and important to us in order to protect stockholder value, while balancing other constituencies’ interests	nnnnnnnnn


PagerDuty			6			2023 Proxy Statement

TABLE OF CONTENTS

The following table sets forth information, as of April 18, 2023, with respect to our directors who we expect to continue in office after the Annual Meeting, including the three nominees for election at the Annual Meeting:

Name

Age

Director
Since

Independent

Audit

Compensation

Corporate Governance and Nominating

Class I Directors-Nominees for Election at the Current Annual Meeting

Jennifer Tejada

July 2016

Sameer Dholakia

December 2019

William Losch

August 2022

Class II Directors-Continuing in Office until the 2024 Annual Meeting

Alec Gallimore

November 2020

Rathi Murthy

March 2019

Chair

Alex Solomon

November 2010

Class III Directors-Continuing in Office until the 2025 Annual Meeting

Elena Gomez

October 2018

Chair

Zachary Nelson

June 2018

Chair

Bonita Stewart

January 2021

Board Diversity


GENDER 44% Female			ETHNIC DIVERSITY 67% Ethnically Diverse			INDEPENDENCE 78% Independent


PagerDuty			7			2023 Proxy Statement

TABLE OF CONTENTS

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

Nominees for Election for a Three-Year Term Expiring
at the 2026 Annual Meeting


Jennifer Tejada AGE: 52 DIRECTOR SINCE: 2016			Ms. Tejada has served as our Chief Executive Officer and as a member of our Board since July 2016. From July 2013 to July 2015, Ms. Tejada served as President and Chief Executive Officer at Keynote Systems, Inc., a software company specializing in digital performance analytics and web and mobile testing. Ms. Tejada currently serves on the board of directors of The Estée Lauder Companies Inc., a multinational manufacturer and marketer of beauty products, and she previously served on the board of directors of UiPath, Inc., global software company that develops a platform for robotic process automation, from September 2020 until April 2023. Prior to her role at PagerDuty, Ms. Tejada was the CEO of Keynote Systems where she led the company to strong profitable growth before its acquisition by Dynatrace in 2015. Before Keynote, Ms. Tejada was Executive Vice President and Chief Strategy Officer at the enterprise software company Mincom leading its global strategy up to its acquisition in late 2011 by ABB. She has also held senior positions at Procter & Gamble and i2 Technologies (acquired by JDA Software). Ms. Tejada holds a B.A. in Business Management and Organizational Behavior from the University of Michigan. Ms. Tejada was selected to serve on our Board because of the experience and perspective she provides as our Chief Executive Officer, as well as her broad executive experience successfully leading, scaling, and optimizing global technology companies.


Sameer Dholakia AGE: 49 DIRECTOR SINCE: 2019			Mr. Dholakia has served on our Board since December 2019. Mr. Dholakia has served as a partner at Bessemer Venture Partners, a venture capital and private equity firm, since May 2022, and has served as the Chief Executive Officer of Twilio SendGrid at Twilio, Inc., a cloud communication platform, from Twilio’s acquisition of SendGrid, Inc., a customer communication platform, in February 2019 to June 2020. From 2014 to February 2019, he served as the Chief Executive Officer and a member of the board of directors of SendGrid, Inc. and as Chairman of the board from September 2017 to February 2019. Prior to joining SendGrid, Mr. Dholakia served at Citrix Systems, Inc., an enterprise software company, as Group Vice President and General Manager of the Cloud Platforms group from 2011 to 2014 and as the Vice President of Marketing from 2010 to 2011. He joined Citrix in 2010 following Citrix’s acquisition of VMLogix, Inc., a provider of virtualization management software, where he served as Chief Executive Officer from 2007 to 2010. Mr. Dholakia has also served on the board of directors of ServiceTitan, Inc., a software company, since 2021. Mr. Dholakia holds a B.A. in Economics and an M.A. in Organizational Studies from Stanford University and an M.B.A. from Harvard Business School. Mr. Dholakia was selected to serve on our Board because of his wealth of knowledge in building and scaling great companies, extensive experience working in the technology sector, and senior leadership experience at technology companies.


PagerDuty			8			2023 Proxy Statement

TABLE OF CONTENTS


William Losch AGE: 61 DIRECTOR SINCE: 2022			Mr. Losch has served on our Board since August 2022. He has been an advisor to Okta, Inc., an identity management platform for enterprises, since his retirement as Chief Financial Officer of Okta in March 2021. From June 2013 until his retirement in March 2021, he served as Chief Financial Officer of Okta, and from June 2007 to June 2013, he served as Chief Financial Officer at MobiTV, Inc., a technology platform provider of multiscreen video delivery services. From October 2004 to May 2007, he served as the Chief Accounting Officer at DreamWorks Animation, SKG, Inc., an animation company. From March 1998 to July 2003, he served in various finance positions, most recently as Vice President of Finance and Chief Accounting Officer, at Yahoo! Inc., an internet company. Mr. Losch currently serves on the boards of directors of two private companies: Druva, Inc., a cloud data protection and management as a service and Onfido, Inc. an identity verification and authentication provider. Mr. Losch holds a B.A. in Economics from the University of California, Los Angeles. Mr. Losch was selected to serve on our Board because of his more than three decades of successful experience providing financial and operational leadership for high-performing SaaS companies.

Directors Continuing in Office Until the 2024 Annual Meeting


Alec Gallimore AGE: 59 DIRECTOR SINCE: 2020			Dr. Gallimore has served on our Board since November 2020. Dr. Gallimore has served as the Robert J. Vlasic Dean of Engineering at the University of Michigan since 2016 and the Richard F. and Eleanor A. Towner Professor of Engineering at the University of Michigan since 2015. He has held various positions of increasing responsibility at the University of Michigan since joining the institution in 1992. Starting on July 1, 2023, Dr. Gallimore will serve as Duke University’s next provost and chief academic officer. Dr. Gallimore has served on several NASA and U.S. Department of Defense boards and studies, including as a member of the United States Air Force Scientific Advisory Board. He is a fellow of the American Institute of Astronautics and Aeronautics and a member of the National Academy of Engineering. Dr. Gallimore currently serves on the board of directors for ANSYS, Inc., an engineering simulation software company, on the board of trustees for the Institute for Defense Analyses (a not-for-profit entity), and as a non-executive director for Bechtel Corporation, an engineering, procurement, construction, and project management company. Dr. Gallimore holds a B.S. in Aeronautical Engineering from Rensselaer Polytechnic Institute and an M.A. and Ph.D. in Aerospace Engineering, with a focus on plasma physics, from Princeton University. Dr. Gallimore was selected to serve on our Board because of his extensive technical expertise and experience, and leadership in engineering R&D and education.


PagerDuty			9			2023 Proxy Statement

TABLE OF CONTENTS


Rathi Murthy AGE: 57 DIRECTOR SINCE: 2019			Ms. Murthy has served on our Board since March 2019. Since June 2021, Ms. Murthy has served as the President & Chief Technology Officer of Expedia Group, managing all of product and technology. Ms. Murthy previously served as the Chief Technology Officer of Verizon Media, a division of Verizon Communications, Inc., a telecommunications company, from January 2020 until May 2021. Ms. Murthy served as Chief Technology Officer at Gap Inc., a clothing and accessories retailer, from March 2016 to January 2020. From September 2012 to March 2016, Ms. Murthy served in various roles at American Express Company, a multinational financial services company, including Senior Vice President and Chief Information Officer of Enterprise Growth from January 2015 to March 2016 and Vice President, Technology from September 2012 to January 2015. Ms. Murthy holds a B.S. in Electrical Engineering from Bangalore University and an M.S. in Computer Engineering from Santa Clara University. Ms. Murthy was selected to serve on our Board because of her extensive technology and engineering experience, developing and building platforms and products for emerging technologies, and senior leadership experience in technology at public companies.


Alex Solomon AGE: 40 DIRECTOR SINCE: 2010			Mr. Solomon co-founded our company and has served as our General Manager of Flexible Platform since January 2021, and as a member of our Board since November 2010. Mr. Solomon served as our Chief Technology Officer from July 2016 to January 2021, and as our Chief Executive Officer from May 2010 to July 2016. Mr. Solomon holds a B.S.E. from the University of Waterloo. Mr. Solomon was selected to serve on our Board because of his experience as our co-founder and former Chief Executive Officer.


PagerDuty			10			2023 Proxy Statement

TABLE OF CONTENTS

Directors Continuing in Office Until the 2025 Annual Meeting


Elena Gomez AGE: 53 DIRECTOR SINCE: 2018			Ms. Gomez has served on our Board since October 2018. Ms. Gomez is currently the Chief Financial Officer of Toast, Inc., a cloud-based restaurant software company. From May 2016 until May 2021, Ms. Gomez served as Chief Financial Officer at Zendesk, Inc., a global company that builds software for customer service and engagement. From July 2010 to April 2016, Ms. Gomez served in senior finance roles at Salesforce, Inc., a global enterprise software company, including Senior Vice President Go To Market Distribution from July 2015 to April 2016, Vice President Sales and Support and Marketing Finance from June 2011 to June 2015, and Senior Director Marketing and General and Administrative Finance from July 2010 to June 2011. Prior to that, she held finance roles at Visa Inc., a financial services company, and The Charles Schwab Corporation, a brokerage and banking company. Ms. Gomez currently serves on the board of directors of Smartsheet Inc. and on the board of directors of the Haas School of Business at the University of California, Berkeley. Ms. Gomez holds a B.S. in Business Administration from the Haas School of Business at the University of California, Berkeley. Ms. Gomez was selected to serve on our Board because of her financial expertise as well as her extensive experience working in the technology sector and senior leadership experience at technology companies and public companies.


Zachary Nelson AGE: 61 DIRECTOR SINCE: 2018			Mr. Nelson has served on our Board since June 2018. Since December 2021, he has served as Chief Executive Officer of ZE Investments, a private investment company. From July 2002 to June 2017, Mr. Nelson served as the Chief Executive Officer at NetSuite Inc., a business management software company that was acquired by Oracle Corporation, a computer technology company, in November 2016. Since August 2021, Mr. Nelson has served on the board of directors as well as the audit committee of Freshworks, Inc., a software solutions company. Since January 2022, he has served on the board of directors of Snyk Limited, a provider of developer-first tooling and security intelligence. Mr. Nelson holds a B.S. in Biological Sciences and an M.A. in Anthropology from Stanford University. Mr. Nelson was selected to serve on our Board because of his experience building and scaling high-velocity cloud software companies and senior leadership experience at technology companies.


PagerDuty			11			2023 Proxy Statement

TABLE OF CONTENTS


Bonita Stewart AGE: 65 DIRECTOR SINCE: 2021			Ms. Stewart has served on our Board since January 2021. Since 2006, Ms. Stewart has served in various roles at Google, Inc., a wholly-owned subsidiary of Alphabet Inc., a global technology company, including her current role as Board Partner for Gradient Ventures, Google’s early stage venture fund investing in artificial intelligence enabled companies. At Google, Ms. Stewart previously served as Vice President, Global Partnerships from July 2016 to June 2020; as Vice President, Americas, Partner Business Solutions from August 2012 to December 2015; as Vice President, U.S. Sales and Operations from 2011 to 2012; as Managing Director, U.S. Sales from 2009 to 2010; and as Industry Director, U.S. Automotive from 2006 to 2009. Ms. Stewart has served on the board of directors of Deckers Outdoor Corporation, a footwear design and distribution company, since September 2014. She also served on the boards of directors of PluralSight, Inc., a leading cloud- based technology skills development platform, from October 2018 to April 2021, and Volta, Inc., an electric vehicle charging infrastructure network, from August 2021 until March 2023. Ms. Stewart holds a B.A. degree in Journalism from Howard University and an M.B.A. degree from Harvard Business School. Ms. Stewart was selected to serve on our Board because of her extensive experience leading multi-billion dollar operations, accelerating digital technology adoption and driving business transformation for major corporations in the IT, automotive and technology fields.

Director Independence

Our common stock is listed on the NYSE. Under the listing requirements and rules of the NYSE, independent directors must comprise a majority of our Board. In addition, the rules of the NYSE require that, subject to specified exceptions, each member of a listed company’s audit, compensation and nominating and corporate governance committees be independent. Under the rules of the NYSE, a director will only qualify as an “independent director” if the Board determines that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. Compensation committee members must not have a relationship with us that is material to the director’s ability to be independent from management in connection with the duties of a compensation committee member. Additionally, audit committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act. To be considered independent for purposes of Rule 10A-3, a member of an audit committee of a listed company may not, other than in his or her capacity as a member of the audit committee, the board of directors or any other board committee accept, directly or indirectly, any consulting, advisory or other compensatory fee from the listed company or any of its subsidiaries or be an affiliated person of the listed company or any of its subsidiaries.

Our Board has undertaken a review of the independence of the directors and considered whether any director has a material relationship with us that could compromise his or her ability to exercise independent judgment in carrying out his or her responsibilities as required by the rules of the NYSE. Based upon information requested from and provided by each director concerning such director’s background, employment and affiliations, including family relationships, our Board determined that Mmes. Gomez, Murthy and Stewart and Messrs. Dholakia, Gallimore, Losch, and Nelson, representing seven of our nine directors, are “independent directors” as defined under current rules and regulations of the SEC and the listing standards of the NYSE. In making these determinations, our Board considered the current and prior relationships that each non-employee director has with the Company and all other facts and circumstances that our Board deemed relevant in determining their independence, including the beneficial ownership of our capital stock by each non-employee director and the transactions involving them described in “Transactions with Related Persons and Indemnification—Certain Related Person Transactions.”


PagerDuty			12			2023 Proxy Statement

TABLE OF CONTENTS

Board Leadership Structure

Jennifer Tejada, our Chief Executive Officer, serves as Chair of our Board and presides over meetings of our Board and carries out such other duties as are customarily carried out by the chair of a board. Ms. Tejada brings valuable insight to our Board due to the perspective and experience she brings as Chief Executive Officer. Our Board has appointed Zachary Nelson to serve as our presiding director. Our presiding director presides over periodic meetings of our independent directors, serves as a liaison between our Chair of the Board and the independent directors, and performs such additional duties as our Board may otherwise determine and delegate.

Role of the Board in Risk Oversight

One of the Board’s key functions is informed oversight of the Company’s risk management process which risks include, among others, strategic, financial, business and operational, cybersecurity, legal and regulatory compliance, and reputational risks. The Board believes that its current leadership structure facilitates its risk oversight responsibilities. In particular, the Board believes the majority-independent Board and independent Board committees provide a well-functioning and effective balance. Although the Board does not have a standing risk management committee, it administers this oversight function directly through the Audit Committee, the Board as a whole, as well as through its other standing committees that address risks inherent in their respective areas of oversight. In particular, the Board is responsible for monitoring and assessing strategic risk exposure, including a determination of the nature and level of risk appropriate for the Company.

The Audit Committee has the responsibility to consider and discuss our major financial risk exposures and the steps our management has taken to monitor and control these exposures, including guidelines and policies to govern the process by which risk assessment and management is undertaken. Furthermore, the Audit Committee plays a role in overseeing risks associated with cybersecurity, information security and data privacy, and regularly reviews with management the Company’s data security programs and assessment, management and mitigation of such risks. The Audit Committee also monitors compliance with legal and regulatory requirements, in addition to oversight of the performance of our internal audit function. The Nominating and Corporate Governance Committee (the “Nominating Committee”) oversees risks related to our overall corporate governance, including Board and committee composition, Board size and structure and director independence, as well as succession planning. The Compensation Committee assesses and monitors whether any of our compensation policies and programs has the potential to encourage excessive risk-taking. Both the Board as a whole and the various standing committees receive periodic reports from executive management, as well as incidental reports as matters may arise. It is the responsibility of the committee chairs to report findings regarding material risk exposures to the Board as appropriate.

Meetings of the Board

Our Board is responsible for the oversight of company management and the strategy of the Company and for establishing corporate policies. Our Board and its committees meet throughout the year on a regular schedule, and also hold special meetings and act by written consent from time to time. The Board met seven times during the last fiscal year. All Board members attended 75% or more of the aggregate number of meetings of the Board and of the committees on which he or she served, held during the portion of the last fiscal year for which he or she was a director or committee member, except Mr. Solomon, who attended five of the seven Board meetings, or 71.43% of such meetings, missing two special Board meetings due to previous commitments.

We encourage our directors and nominees for director to attend our annual meeting of stockholders. All current members of our Board at the time of the 2022 annual meeting of stockholders attended the meeting with the exception of Mr. Gallimore and Ms. Gomez.


PagerDuty			13			2023 Proxy Statement

TABLE OF CONTENTS

Committees of the Board

Our Board has established an Audit Committee, a Compensation Committee and a Nominating Committee. From time to time, our Board may establish other committees to facilitate the management of our business. The composition and responsibilities of each of the committees as of May 2, 2023 is described below. Members serve on these committees until their resignation or until otherwise determined by the Board.

Each committee operates under a written charter that satisfies the applicable rules of the SEC and the listing standards of the NYSE. Copies of each charter are posted on our website at https://investor.pagerduty.com/governance/governance-documents. The inclusion of our website address in this Proxy Statement does not include or incorporate by reference the information on our website into this Proxy Statement.



Name of Director	Audit Committee	Compensation Committee	Nominating and Corporate Governance Committee

Jennifer Tejada
Sameer Dholakia		Member
Alec Gallimore	Member
Elena Gomez	Chair
William Losch	Member
Rathi Murthy		Member	Chair
Zachary Nelson		Chair	Member
Alex Solomon
Bonita Stewart	Member		Member
Total Number of Meetings in Fiscal Year 2023	4	7	4


PagerDuty			14			2023 Proxy Statement

TABLE OF CONTENTS


Audit Committee MEMBERS: ELENA GOMEZ (CHAIR) ALEC GALLIMORE WILLIAM LOSCH BONITA STEWART			The Audit Committee oversees the Company’s corporate accounting and financial reporting processes and audits of its financial statements. The principal duties and responsibilities of our Audit Committee include, among other things: •helping our Board oversee our corporate accounting and financial reporting processes, systems of internal control, and financial statement audits, and the integrity of our financial statements; •managing the selection, engagement terms, fees, qualifications, independence, and performance of qualified firms to serve as independent registered public accounting firms to audit our financial statements; •discussing the scope and results of the audit with the independent registered public accounting firms, and reviewing, with management and the independent accountants, our interim and year-end operating results; •developing and reviewing procedures for employees to submit concerns anonymously about questionable accounting or auditing matters; •overseeing our risk identification, assessment and management practices, processes and policies in all areas of our business, including financial and accounting; •overseeing compliance with our Code of Business Conduct and Ethics; •reviewing and approving related-party transactions; •obtaining and reviewing a report by the independent registered public accounting firms, at least annually, that describes the firm’s internal quality-control procedures, any material issues with such procedures, and any steps taken to address such issues when required by applicable law; and •approving (or, as permitted, pre-approving) all audit and all permissible non-audit services, other than de minimis non-audit services, to be performed by the independent registered public accounting firms. Each member of our Audit Committee meets the requirements for independence under the listing standards of the NYSE and the applicable rules and regulations of the SEC. Each member of our Audit Committee also meets the financial literacy requirements of the listing standards of the NYSE. In addition, our Board has determined that each of Ms. Gomez and Mr. Losch is an “audit committee financial expert” within the meaning of Item 407(d) of Regulation S-K under the Securities Act of 1933, as amended (the “Securities Act”).


PagerDuty			15			2023 Proxy Statement

TABLE OF CONTENTS


Compensation Committee MEMBERS: ZACHARY NELSON (CHAIR) SAMEER DHOLAKIA RATHI MURTHY			Our Compensation Committee is responsible for, among other things: •reviewing and approving, or recommending that our Board approve, the compensatory arrangements of our executive officers and other senior management, as appropriate; •reviewing and recommending to our Board the compensation of our non-employee directors; •administering our equity award plans, compensation plans and similar programs; •evaluating and adopting compensation plans and programs and evaluating and recommending to our Board for approval the modification or termination of our existing plans and programs; and •reviewing and establishing general policies relating to compensation and benefits of our employees and reviewing our overall compensation strategy. Each member of our Compensation Committee meets the requirements for independence under the listing standards of the NYSE and the applicable rules and regulations of the SEC. Each member of the compensation committee is also a non-employee director, as defined pursuant to Rule 16b-3 promulgated under the Exchange Act.

COMPENSATION COMMITTEE PROCESSES AND PROCEDURES

Typically, the Compensation Committee meets quarterly and with greater frequency, if necessary. The agenda for each meeting is usually developed by the Chair of the Compensation Committee, in consultation with the Company’s Chief People Officer and Compensia, Inc. (“Compensia”). 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 her compensation or individual performance objectives. The charter of the Compensation Committee grants the Compensation Committee full access to all books, records, facilities and personnel of the Company. In addition, under the charter, the Compensation Committee has the authority to obtain, at the expense of the Company, 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 advisors 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 advisor to the Compensation Committee, other than in-house legal counsel and certain other types of advisors, only after taking into consideration six factors, prescribed by the SEC and the NYSE, that bear upon the advisor’s independence; however, there is no requirement that any advisor be independent.


PagerDuty			16			2023 Proxy Statement

TABLE OF CONTENTS

During the past fiscal year, after taking into consideration the six factors prescribed by the SEC and the NYSE, the Compensation Committee engaged Compensia as its compensation consultant. The Compensation Committee requested that Compensia:

•assist in evaluating, developing and implementing an executive compensation program in connection with the Company’s transition to a public company;

•assist in developing a non-employee director compensation program; and

•develop a comparative group of companies and perform analyses of competitive performance and compensation levels for that group.

Compensia representatives meet regularly with our Compensation Committee during its regular meetings, including in executive sessions from time to time without any members of management present. Compensia works directly with our Compensation Committee (and not on behalf of management) to assist our Compensation Committee in satisfying its responsibilities and will undertake no projects for management without our Compensation Committee’s approval. No work performed by Compensia during fiscal year 2023 raised a conflict of interest.

Under its charter, the Compensation Committee may form, and delegate authority to, subcommittees as appropriate. In fiscal year 2023, the Compensation Committee delegated authority to the Chief Executive Officer to grant, without any further action required by the Compensation Committee, equity awards to employees and consultants who are not officers or directors of the Company or direct-reports to the Chief Executive Officer. The purpose of this delegation of authority is to enhance the flexibility of equity award administration within the Company and to facilitate the timely grant of equity awards to non-executive employees, particularly new employees, within specified limits approved by the Compensation Committee. In particular, under this delegation of authority, the Chief Executive Officer may make awards in an individual amount of up to 100,000 restricted stock units (“RSUs”) or stock options to purchase up to 200,000 shares or a combination of 150,000 RSUs and stock options, subject to an aggregate value limit of $2 million, to eligible employees per fiscal year. Typically, as part of its oversight function, the Compensation Committee will review the list of grants made by the Chief Executive Officer at each regularly scheduled meeting.

The Compensation Committee considers matters related to individual compensation, such as compensation for new executive hires, as well as high-level strategic issues, such as the efficacy of the Company’s compensation strategy, potential modifications to that strategy and new trends, plans or approaches to compensation, at various meetings throughout the year. Generally, the Compensation Committee’s process comprises two related elements: the determination of compensation levels and the establishment of performance objectives for the current year. For executives other than the Chief Executive Officer, the Compensation Committee solicits and considers evaluations and recommendations submitted to the Compensation Committee by the Chief Executive Officer. In the case of the Chief Executive Officer, the evaluation of her performance is conducted by the Compensation Committee, which determines any adjustments to her compensation as well as awards to be granted. For all executives as part of its deliberations, the Compensation Committee may review and consider, as appropriate, materials such as financial reports and projections, operational data, tax and accounting information, tally sheets that set forth the total compensation that may become payable to executives in various hypothetical scenarios, stock ownership information, Company stock performance data, analyses of historical executive compensation levels and current Company-wide compensation levels, and recommendations of the Compensation Committee’s compensation consultant, including analyses of executive compensation paid at other companies identified by the compensation consultant.

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

Our Compensation Committee is currently comprised of Messrs. Nelson and Dholakia and Ms. Murthy, none of whom is or has been an officer or employee of our company. None of our executive officers currently serves, or in the past year 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 or Compensation Committee.


PagerDuty			17			2023 Proxy Statement

TABLE OF CONTENTS


Nominating and Corporate Governance Committee MEMBERS: RATHI MURTHY (CHAIR) ZACHARY NELSON BONITA STEWART			Our Nominating Committee is responsible for, among other things: •identifying and evaluating candidates, including the nomination of incumbent directors for re-election and nominees recommended by stockholders, to serve on our Board; •reviewing the performance of our Board, including committees of the Board, and management; •considering and making recommendations to our Board regarding the composition of our Board and its committees; •instituting plans or programs for the continuing education of directors and orientation of new directors; •reviewing our environmental, social and governance (“ESG”) activities and programs and, as appropriate, our public disclosures related to ESG matters; •developing and making recommendations to our Board regarding corporate governance guidelines and matters; and •reviewing plans for succession to the offices of our executive officers and making recommendations to our Board regarding selection of appropriate individuals to succeed to these positions. Each member of our Nominating Committee meets the requirements for independence under the listing standards of the NYSE.

CONSIDERATIONS IN EVALUATING DIRECTOR NOMINEES

Our Nominating Committee uses a variety of methods for identifying and evaluating potential director candidates. In its evaluation of director candidates, including the current directors eligible for re-election, our Nominating Committee will consider the current size and composition of our Board and the needs of our Board and the respective committees of our Board. Some of the qualifications that our Nominating Committee considers include, without limitation, experience of particular relevance to us and our Board, accomplishments, superior credentials, independence, area of expertise, and the highest ethical and moral standards. Although our Board does not maintain a specific policy with respect to board diversity, our Board believes that the Board should be a diverse body, and the Nominating Committee considers a broad range of backgrounds and experiences. Our Board regularly assesses the diversity of its members and nominees as part of its annual evaluation process. Our Board believes that our directors represent a diverse and broad range of attributes, qualifications, experiences, and skills to provide an effective mix of viewpoints and knowledge. Our Board includes four female directors and a majority of the directors on our Board are from underrepresented minority groups.

In making determinations regarding nominations of directors, the Nominating Committee may take into account the benefits of diverse viewpoints. Any search firm retained by our Nominating Committee to find director candidates would be instructed to take into account all of the considerations used by our Nominating Committee. After completing its review and evaluation of director candidates, our Nominating Committee recommends to our full Board the director nominees for selection.

STOCKHOLDER RECOMMENDATIONS FOR NOMINATIONS TO THE BOARD OF DIRECTORS

Our Nominating Committee will consider candidates for director recommended by our stockholders who are stockholders of record at the time of the submission of the director recommendation and on the record date for the determination of stockholders entitled to vote at the annual meeting, so long as such recommendations comply with our amended and restated certificate of incorporation and amended and restated bylaws and applicable laws, rules and regulations, including those promulgated by the SEC. The Nominating Committee will evaluate such recommendations in accordance with its charter, our amended and restated bylaws, our policies and procedures for director candidates, as well as the regular director nominee criteria described above. This process is designed to ensure that our Board includes members with diverse backgrounds, skills and experience, including appropriate financial and other expertise relevant to our business.


PagerDuty			18			2023 Proxy Statement

TABLE OF CONTENTS

Stockholders who wish to recommend individuals for consideration by the Nominating Committee to become nominees for election to the Board may do so by delivering a written recommendation to the Nominating Committee at the following address: c/o PagerDuty, Inc., 600 Townsend St., Suite 200, San Francisco, CA 94103, Attn: Secretary, no later than the close of business on the 90th day nor earlier than the close of business on the 120th day prior to the first anniversary of the preceding year’s annual meeting. Submissions must include the full name and address of the stockholder on whose behalf the submission is made, the number of shares owned beneficially by such stockholder as of the date of the submission, the full name of the proposed nominee, a description of the proposed nominee’s business experience for at least the previous five years, complete biographical information, a description of the proposed nominee’s qualifications as a director and any additional information required by our amended and restated bylaws. Our Nominating Committee has discretion to decide which individuals to recommend for nomination as directors. Any such submission must be accompanied by the written consent of the proposed nominee to be named as a nominee and to serve as a director if elected.

Communications with our Board of Directors

Stockholders or interested parties who wish to communicate with our Board or with an individual director may do so by mail to our Board or the individual director, care of our Secretary at 600 Townsend St., Suite 200, San Francisco, CA 94103. The communication should indicate that it contains a stockholder or interested party communication. Our General Counsel or his/her designee, in consultation with appropriate directors as necessary, will review all incoming communications and, if appropriate, all such communications will be forwarded to the director or directors to whom the communications are addressed or, if none are specified, to the Chair of our Board.

Corporate Governance Guidelines and Code of Business Conduct and Ethics

Our Board has adopted Corporate Governance Guidelines. These guidelines address items such as the qualifications and responsibilities of our directors and director candidates and corporate governance policies and standards applicable to us in general. In addition, our Board has adopted a Code of Business Conduct and Ethics that applies to all of our employees, officers and directors, including our chief executive officer, chief financial officer, and other executive and senior financial officers. The full text of our Corporate Governance Guidelines and our Code of Business Conduct and Ethics is posted on our investor relations webpage at https://investor.pagerduty.com/governance/governance-documents. We intend to post any amendments to our Code of Business Conduct and Ethics, and any waivers of our Code of Business Conduct and Ethics for directors and executive officers, on the same website or in a Current Report on Form 8-K filed with the SEC. The inclusion of our website address in this Proxy Statement does not include or incorporate by reference into this Proxy Statement the information on or accessible through our website.


PagerDuty			19			2023 Proxy Statement

TABLE OF CONTENTS

Director Compensation

The following table sets forth information regarding the compensation of our directors during the fiscal year ended January 31, 2023, other than Jennifer Tejada, our Chief Executive Officer, who is also a member of our Board but did not receive any additional compensation for service as a director. The compensation of Ms. Tejada as a named executive officer is set forth below under “Executive Compensation—Summary Compensation Table for Fiscal Year 2023.” The table below includes information regarding the compensation of Alex Solomon, our co-founder and Chief Technology Officer, who is an employee of the Company and a member of our Board, but did not receive any compensation for service as a director.


Name	Fees Earned or Paid in Cash ($)	Option Awards ($)(1)(2)	Stock Awards ($)(1)(2)	All Other Compensation ($)	Total ($)
Sameer Dholakia	51,048	—	184,988	—	236,036
Alec Gallimore	45,000	—	184,988	—	229,988
Elena Gomez	55,000	—	184,988	—	239,988
William Losch(3)	21,699	—	449,988	—	471,687
Rathi Murthy	50,500	—	184,988	—	235,488
Zachary Nelson	54,000	—	184,988	—	238,988
Alex Solomon(4)	—	—	904,640	281,646	1,186,286
Bonita Stewart	49,000	—	184,988	—	233,988

(1)The amounts disclosed represent the aggregate grant date fair value of the stock awards granted under our 2019 Equity Incentive Plan (the “2019 Plan”), computed in accordance with Financial Accounting Standards Board Accounting Standards Codification ASC Topic 718 (ASC Topic 718). Such grant-date fair value does not take into account any estimated forfeitures related to service-vesting conditions. The assumptions used in calculating the grant date fair value of the stock awards reported in these columns are set forth in the notes to our audited financial statements included in our Annual Report. These amounts do not reflect the actual economic value that may be realized by the director. For additional information, refer to Note 12 to our consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2023.

(2)As of January 31, 2023, our non-employee directors held outstanding stock options to purchase shares of common stock and outstanding RSUs. Ms. Gomez and Ms. Murthy held 181,140 and 148,881 outstanding stock options, respectively. Mr. Dholakia, Mr. Gallimore, Ms. Gomez, Mr. Losch, Ms. Murthy, Mr. Nelson, and Ms. Stewart held 7,695, 12,082, 7,695, 16,094, 7,695, 7,695, and 11,110 outstanding RSUs, respectively. This includes awards for non-employee director compensation as well as non-director compensation for Mr. Solomon, who does not receive additional compensation for service as a director.

(3)Mr. Losch was appointed to the Board on August 9, 2022.

(4)Mr. Solomon is an employee of the Company and only received compensation in the fiscal year ended January 31, 2023, for his services as an employee. In the fiscal year ended January 31, 2023, Mr. Solomon earned a salary of $208,333, bonus of $72,418, received a gift card ($600) that every eligible employee received as well as the associated tax gross-up ($295) on such gift card, an RSU stock award with a grant date fair value of $723,719 and a PSU award with a grant date fair value of $180,921, in each case computed in accordance with ASC Topic 718. With respect to PSU award, the grant date fair value in the table is calculated assuming probable outcome of the applicable performance condition, measured as of the grant date in accordance with ASC Topic 718. The grant date fair value of the PSU award, assuming achievement of the maximum level of performance under the applicable performance conditions is $361,842. The shares underlying the RSU award vests in 16 quarterly installments, commencing three months after the grant date, subject to continuous service through each such date. The units subject to the PSU award vest, if at all, based upon the same performance conditions and vesting requirements as the PSU awards granted to our NEOs on April 2, 2022, as further described in “Compensation Discussion and Analysis – Compensation Elements – Design of Fiscal 2023 PSU Awards” below. Because the performance metric for the PSUs was not met, this resulted in 0% of the target PSUs granted to Mr. Solomon becoming eligible PSUs, and as a result, all of the PSUs granted to Mr. Solomon in fiscal 2023 were canceled in their entirety. Mr. Solomon did not receive any additional compensation for service as a director.


PagerDuty			20			2023 Proxy Statement

TABLE OF CONTENTS

STOCKHOLDER RECOMMENDATIONS FOR NOMINATIONS TO THE BOARD OF DIRECTORS

In March 2019, our Board approved a director compensation policy for non-employee directors that became effective in connection with our initial public offering (“IPO”). Pursuant to this policy, our non-employee directors receive the following compensation.

Equity Compensation

Any person who is elected or appointed as a non-employee director for the first time will receive an initial award of RSUs having a value of $450,000 on the date of grant (the “Initial Grant”). The Initial Grant will vest in three equal annual installments on the anniversary date on which the non-employee director was appointed to our Board, subject to the director’s continuous service to us through each such date.

On the date of each annual meeting of stockholders, each non-employee director who will continue as a non-employee director following such meeting will be granted an annual award of RSUs having a fair market value of $185,000 on the date of grant (the “Annual Grant”). The Annual Grant will fully vest on the earlier of the first anniversary of the grant date or immediately prior to the next annual meeting of stockholders, subject to the director’s continuous service to us through each such date. A non-employee director who is elected for the first time six months or less prior to the date of our next annual meeting of stockholders will not be eligible to receive such Annual Grant at the first annual meeting of stockholders following his or her appointment or election.

Cash Compensation

In addition, each non-employee director is entitled to receive the following cash compensation for services on our Board and its committees as follows:

•$35,000 annual cash retainer for service as a Board member and an additional annual cash retainer of $15,000 for service as lead independent director of our Board, if any;

•$20,000 annual cash retainer for service as chair of the Audit Committee and $10,000 per year for service as a member of the Audit Committee;

•$15,000 annual cash retainer for service as chair of the Compensation Committee and $7,500 per year for service as a member of the Compensation Committee; and

•$8,000 annual cash retainer for service as chair of the Nominating Committee and $4,000 per year for service as a member of the Nominating Committee.

The annual cash compensation amounts are payable in equal quarterly installments, in arrears following the end of each quarter in which the service occurred, pro-rated for any partial quarters.

Director Compensation Limits

Director compensation limits are in place that may not be increased without stockholder approval. Under the terms of the 2019 Equity Incentive Plan, the maximum number of shares of common stock subject to awards granted and cash fees paid by us during any one calendar year to any non-employee director for service on our Board will not exceed $750,000 in total value (calculating the value of the awards based on the grant date fair value for financial reporting purposes), or, with respect to the calendar year in which a non-employee director is first appointed or elected to our Board, $1,000,000.

Expenses

We will reimburse each eligible non-employee director for ordinary, necessary and reasonable out-of-pocket travel expenses to cover in-person attendance at and participation in meetings of our Board and any committee of the Board.


PagerDuty			21			2023 Proxy Statement

TABLE OF CONTENTS

PROPOSAL 1

Election of Directors

Our Board currently has nine members, and, in accordance with our certificate of incorporation, is divided into three classes with staggered three-year terms. One class is elected each year at the annual meeting of stockholders for a term of three years. At the Annual Meeting, three Class I directors will be elected for a three-year term to succeed the same class whose term is then expiring. Each director’s term continues until the election and qualification of such director’s successor, or such director’s earlier death, resignation or removal. There are three Class I directors in the class whose term of office expires in 2023:


n Jennifer Tejada	n Sameer Dholakia	n William Losch

Nominees

Our Board has nominated Jennifer Tejada, Sameer Dholakia and William Losch for election as Class I directors at the Annual Meeting. If elected, each of Ms. Tejada, Mr. Dholakia and Mr. Losch will serve as Class I directors until the 2026 annual meeting of stockholders or until their successors are elected and qualified, or their earlier death, resignation or removal. Each of the nominees is currently a director of the Company. For information concerning the nominees, see the section titled “Board of Directors and Corporate Governance.”

Unless you direct otherwise through your proxy voting instructions, the persons named as proxies will vote all proxies received “FOR” the election of each nominee. If any nominee is unable or unwilling to serve at the time of the Annual Meeting, the persons named as proxies may vote for a substitute nominee chosen by the present Board. In the alternative, the proxies may vote only for the remaining nominee, leaving a vacancy on our Board. Our Board may fill such vacancy at a later date or reduce the size of our Board. Each of the nominees is a current member of our Board and has consented to serve if elected, and we have no reason to believe that any of the nominees will be unwilling or unable to serve if elected as a director.

Vote Required

The election of Class I directors requires a plurality vote of the shares of our common stock present virtually or by proxy at the Annual Meeting and entitled to vote thereon to be approved. Accordingly, the three nominees receiving the highest number of “FOR” votes will be elected. Broker non-votes will have no effect on this proposal.



			THE BOARD RECOMMENDS A VOTE “FOR” THE ELECTION OF EACH OF THE THREE DIRECTORS NOMINATED BY OUR BOARD AND NAMED IN THIS PROXY STATEMENT AS CLASS I DIRECTORS TO SERVE FOR A THREE-YEAR TERM.


PagerDuty			22			2023 Proxy Statement

TABLE OF CONTENTS

PROPOSAL 2

Ratification of Selection of Independent
Registered Public Accounting Firm

Our Audit Committee has appointed Ernst & Young LLP as our independent registered public accounting firm to audit our consolidated financial statements for our fiscal year ending January 31, 2024. Ernst & Young LLP has served as our independent registered public accounting firm since 2015.

At the Annual Meeting, stockholders are being asked to ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for our fiscal year ending January 31, 2024. Stockholder ratification of the appointment of Ernst & Young LLP is not required by our bylaws or other applicable legal requirements. However, our Board is submitting the appointment of Ernst & Young LLP to our stockholders for ratification as a matter of good corporate governance. In the event that this appointment is not ratified by the affirmative vote of a majority of the shares present virtually or by proxy at the Annual Meeting and entitled to vote, such appointment will be reconsidered by our Audit Committee. Even if the appointment is ratified, our Audit Committee, in its sole discretion, may appoint another independent registered public accounting firm at any time during our fiscal year ending January 31, 2024 if our Audit Committee believes that such a change would be in the best interests of the Company and its stockholders. If the appointment is not ratified by our stockholders, the Audit Committee may reconsider whether it should appoint another independent registered public accounting firm. A representative of Ernst & Young LLP is expected to be present at the Annual Meeting, will have an opportunity to make a statement if he or she wishes to do so, and is expected to be available to respond to appropriate questions from stockholders.

Fees Paid to the Independent Registered Public Accounting Firm

The following table presents fees for professional audit services and other services rendered to us by Ernst & Young LLP for our fiscal years ended January 31, 2023 and January 31, 2022.



	2023 ($)	2022 ($)

Audit Fees(1)	3,137,000	2,584,801
Audit-Related Fees(2)	249,870	360,650
Tax Fees(3)	224,891	50,807
All Other Fees(4)	3,500	4,310
Total Fees	3,615,261	3,000,568

(1)Consist of aggregate fees for professional services provided in connection with the annual audits of our consolidated financial statements and internal control over financial reporting, the review of our quarterly condensed consolidated financial statements, and fees related to accounting matters that were addressed during the annual audit and quarterly reviews. This category also includes fees for services that were incurred in connection with statutory and regulatory filings or engagements.

(2)Consist of aggregate fees for professional services that were reasonably related to the performance of audits or reviews of our consolidated financial statements and were not reported above under “Audit Fees.”

(3)Consist of aggregate fees for tax compliance and consultation services.

(4)Consist of aggregate fees billed for products and services provided by the independent registered public accounting firm other than those disclosed above, which include subscription fees paid for access to online accounting research software applications and data.


PagerDuty			23			2023 Proxy Statement

TABLE OF CONTENTS

Pre-Approval Policies and Procedures

The Audit Committee has adopted a policy and procedures for the pre-approval of audit and non-audit services rendered by the Company’s independent registered public accounting firm, Ernst & Young LLP. Pre-approval may 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. All of the services provided by Ernst & Young LLP for the years ended January 31, 2023 and 2022 described above were pre-approved by the Audit Committee.

The Audit Committee has determined that the rendering of services other than audit services by Ernst & Young LLP is compatible with maintaining the principal accountant’s independence.

Vote Required

The ratification of the appointment of Ernst & Young LLP requires the affirmative vote of a majority of the shares of our common stock present virtually or by proxy at the Annual Meeting and entitled to vote thereon. Abstentions will have the effect of a vote against the proposal.



			THE BOARD RECOMMENDS A VOTE “FOR” PROPOSAL 2, THE RATIFICATION OF THE APPOINTMENT OF ERNST & YOUNG LLP AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR OUR FISCAL YEAR ENDING JANUARY 31, 2024.


PagerDuty			24			2023 Proxy Statement

TABLE OF CONTENTS

Audit Committee Report

The information contained in the following Audit Committee Report shall not be deemed to be soliciting material or to be filed with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act or the Exchange Act, except to the extent that PagerDuty, Inc. specifically incorporates it by reference in such filing.

The Audit Committee serves as the representative of our Board with respect to its oversight of:

•our accounting and financial reporting processes and the audit of our financial statements;

•the integrity of our financial statements;

•our compliance with legal and regulatory requirements;

•inquiring about significant risks, reviewing our policies for risk assessment and risk management, and assessing the steps management has taken to control these risks; and

•the independent registered public accounting firm’s appointment, qualifications and independence.

The Audit Committee also reviews the performance of our independent registered public accounting firm, Ernst & Young LLP, in the annual audit of our financial statements and in assignments unrelated to the audit, and reviews the independent registered public accounting firm’s fees.

The Audit Committee is composed of four non-employee directors. Our Board has determined that each member of the Audit Committee is independent, and that each of Ms. Gomez and Mr. Losch is an “audit committee financial expert” under the SEC rules.

The Audit Committee provides our Board such information and materials as it may deem necessary to make our Board aware of financial matters requiring the attention of our Board. The Audit Committee reviews our financial disclosures and meets privately, outside the presence of our management, with our independent registered public accounting firm. In fulfilling its oversight responsibilities, the Audit Committee reviewed and discussed the audited financial statements in the Annual Report on Form 10-K for the fiscal year ended January 31, 2023 with management, including a discussion of the quality and substance of the accounting principles, the reasonableness of significant judgments made in connection with the audited financial statements, and the clarity of disclosures in the financial statements. The Audit Committee reports on these meetings to our Board.

The Audit Committee reviewed and discussed our audited consolidated financial statements with management and Ernst & Young LLP, our independent registered public accounting firm. The Audit Committee has discussed with Ernst & Young LLP the matters required to be discussed by Auditing Standard No. 1301, Communications with Audit Committees, issued by the Public Company Accounting Oversight Board (the “PCAOB”).

The Audit Committee received and reviewed the written disclosures and the letter from Ernst & Young LLP required by the applicable requirements of the PCAOB regarding Ernst & Young LLP’s communications with the audit committee concerning independence, and discussed with Ernst & Young LLP its independence. In addition, the Audit Committee discussed with Ernst & Young LLP its independence from management and the Company, including matters in the letter from Ernst & Young LLP required by PCAOB Rule 3526, Communication with Audit Committees Concerning Independence, and considered the compatibility of non-audit services with Ernst & Young LLP’s independence.

Based on the review and discussions referred to above, the Audit Committee recommended to our Board that our audited consolidated financial statements be included in the Annual Report on Form 10-K for the fiscal year ended January 31, 2023 for filing with the SEC. The Audit Committee also has selected Ernst & Young LLP as the independent registered public accounting firm for fiscal year 2024. Our Board recommends that stockholders ratify this selection at the Annual Meeting.

Respectfully submitted by the members of the Audit Committee of the Board:

Elena Gomez (Chair) Alec Gallimore

William Losch Bonita Stewart


PagerDuty			25			2023 Proxy Statement

TABLE OF CONTENTS

PROPOSAL 3

Advisory, Non-Binding Vote to Approve the Compensation of Our Named Executive Officers

We are asking our stockholders to vote to approve, on an advisory, non-binding basis, the compensation of our named executive officers for fiscal 2023 as disclosed in this Proxy Statement, in accordance with the requirements of Section 14A of the Exchange Act. As described in detail under the heading “Compensation Discussion and Analysis,” our executive compensation program is designed to drive and reward performance and align the compensation of our named executive officers with the long-term interests of our stockholders. Please read the “Compensation Discussion and Analysis” and the compensation tables and narrative disclosure that follow for additional details about our executive compensation program, including information about the fiscal 2023 compensation of our named executive officers.

This proposal, commonly known as a “say-on-pay” proposal, gives our stockholders the opportunity to express their views on our named executive officers’ compensation as a whole. This vote is not intended to address any specific element of compensation but rather the overall compensation of our named executive officers and the philosophy, policies and practices described in this Proxy Statement. Our Board and our Compensation Committee believe that these policies and practices are effective in implementing our compensation philosophy and in achieving our compensation program goals.

Accordingly, we are asking our stockholders to vote “FOR” the following resolution:

RESOLVED, that the stockholders hereby approve, on an advisory, non-binding basis, the compensation paid to the Company’s named executive officers, as disclosed in the Company’s Proxy Statement for the 2023 Annual Meeting of Stockholders, pursuant to the compensation disclosure rules of the SEC, including in the Compensation Discussion and Analysis, the compensation tables and the narrative discussions that accompany the compensation tables.

Vote Required

The approval of this advisory non-binding proposal requires the affirmative vote of a majority of the shares of our common stock present virtually or by proxy at the Annual Meeting and entitled to vote thereon. Broker non-votes will have no effect on this proposal. Abstentions will have the effect of a vote against the proposal.

As an advisory vote, the outcome of the vote on this proposal is not binding. However, our management team, our Board and our Compensation Committee, which is responsible for designing and administering our executive compensation program, will consider the opinions expressed by our stockholders, whether through this vote or otherwise, and will consider the outcome of this vote when making future executive compensation decisions.

We currently conduct annual advisory votes on executive compensation and expect to conduct the next advisory vote at our next annual meeting of stockholders in 2024.



			THE BOARD RECOMMENDS A VOTE “FOR” THE APPROVAL, ON AN ADVISORY, NON-BINDING BASIS, OF THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS, AS DISCLOSED IN THIS PROXY STATEMENT.


PagerDuty			26			2023 Proxy Statement

TABLE OF CONTENTS

Executive Officers

The following table sets forth information concerning our executive officers as of April 18, 2023. Our executive officers are appointed by, and serve at the discretion of, the Board and each holds office until his or her successor is duly elected and qualified or until his or her earlier resignation or removal. There are no family relationships among any of our directors or executive officers.


Name	Age	Position

Jennifer Tejada	52	Chief Executive Officer and Chair of the Board
Howard Wilson	58	Chief Financial Officer
Shelley Webb	41	Senior Vice President, Legal, General Counsel and Secretary

Executive Officers

JENNIFER TEJADA

Biographical information regarding Ms. Tejada can be found in the table under the section titled “Directors Continuing in Office Until the 2023 Annual Meeting” beginning on page 7 of this Proxy Statement.

HOWARD WILSON

Mr. Wilson has served as our Chief Financial Officer since September 2018 and served as our acting Chief Financial Officer from December 2017 to September 2018. Mr. Wilson also served as our Chief Commercial Officer from January 2017 to September 2018. From August 2016 to June 2018, Mr. Wilson served as an Executive Consultant and Leadership Advisor at The BluePrint Lab, a consulting company. From April 2015 to July 2016, Mr. Wilson served as General Manager, Digital Experience Management at Dynatrace, LLC, an application performance management software company. From October 2013 to December 2015, Mr. Wilson served as Chief Commercial Officer and Executive Vice President at Keynote Systems. Mr. Wilson holds a B.Sc. in Information Systems and Psychology from the University of South Africa.

SHELLEY WEBB

Ms. Webb has served as our Senior Vice President, Legal, and General Counsel since April 2022 and as our Senior Vice President, Legal, and General Counsel and Secretary since May 2022. From September 2013 to March 2022, Ms. Webb served in senior legal roles at Intel Corporation, including Vice President and Group General Counsel for Intel’s Client Computing Group, its largest business unit delivering $40B in annual revenue, Associate General Counsel and Director of Intel Product Assurance and Security Legal, and Associate General Counsel for Antitrust and Commercial Litigation. Ms. Webb began her career as a litigator at Williams & Connolly in Washington, D.C. Ms. Webb holds a B.A. in Economics and Government from the University of Virginia and a J.D. from Stanford Law School.


PagerDuty			27			2023 Proxy Statement

TABLE OF CONTENTS

Compensation Discussion and Analysis

Introduction

This Compensation Discussion and Analysis (“CD&A”) provides information regarding the fiscal 2023 compensation program for our Named Executive Officers (“NEOs”), including our principal executive officer, our principal financial officer and three additional individuals who served as executive officers in 2023. For fiscal 2023, our NEOs, whose compensation is discussed in this CD&A and shown in the executive compensation tables below, were:

•Jennifer Tejada, our Chief Executive Officer (our “CEO”) and Chairperson of the Board (principal executive officer);

•Howard Wilson, our Chief Financial Officer (our “CFO”) (principal financial officer);

•Shelley Webb, our Senior Vice President, Legal, General Counsel and Secretary(1);

•David Justice, our Executive Vice President, Chief Revenue Officer(2); and

•Stacey Giamalis, our former Senior Vice President, Legal, General Counsel, and Secretary(3).

(1)Ms. Webb was appointed as our Senior Vice President, Legal and General Counsel, effective April 25, 2022, and Senior Vice President, Legal and General Counsel and Secretary, effective May 26, 2022.

(2)Mr. Justice ceased serving as our Chief Revenue Officer effective February 3, 2023. Mr. Justice is a NEO for 2023 due to his service as Executive Vice President, Chief Revenue Officer through the end of fiscal year 2023, but he is not a current PagerDuty executive officer.

(3)Ms. Giamalis ceased serving as Senior Vice President, Legal, General Counsel and Secretary on April 25, 2022, and continued to provide services during a transition period until May 6, 2022. In recognition of the transition services that Ms. Giamalis agreed to provide following her cessation as our Senior Vice President, Legal, General Counsel, and Secretary, we agreed to provide her with a lump sum payment equal to six months of her annual base salary and 12 months of COBRA premiums through May 31, 2023. The Compensation Committee believed that such payments as set forth in PagerDuty, Inc. Amended and Restated Executive Severance and Change in Control Policy (the “Severance Policy”) for termination “without cause” and benefits were reasonable and appropriate to ensure a smooth transition of her duties and responsibilities to her successor. Ms. Giamalis is an NEO for 2023 due to her service as Senior Vice President, Legal, General Counsel and Secretary during fiscal year 2023, but she is not a current PagerDuty executive officer.

In this CD&A, we describe the material elements of our executive compensation philosophy and programs during fiscal 2023, and provide the key facts and reasoning behind our Compensation Committee’s compensation decisions regarding the fiscal 2023 compensation of our NEOs.

Executive Summary

WHO WE ARE

PagerDuty is transforming critical work for modern enterprises. The PagerDuty Operations Cloud organizations can dramatically compress costs, radically accelerate productivity, and sustain seamless digital experiences. PagerDuty harnesses the power of technology to put people first: scaling teams with automation and keeping them in-context and in-flow. Teams and individuals are empowered to do the critical work that moves business forward – faster. Our customers turn to us to save money, drive growth, and build customer trust. Nearly half of the Fortune 500 and almost two thirds of the Fortune 100 trust PagerDuty to enable teams to automate and accelerate critical work – to transform operations and move business forward faster through incident response, AIOps, process automation, and customer service operations.

FISCAL 2023(1) PERFORMANCE HIGHLIGHTS

Amid global economic challenges, PagerDuty had a strong fiscal 2023 driven by our transition to a platform with a low total cost of ownership, rapid payback period and high return on investment (“ROI”), which resulted in a fiscal year of significant growth for PagerDuty.

We also achieved several major milestones as we improved our operating margin and achieved non-GAAP profitability a year ahead of plan. We delivered revenue of $370.8 million for the year, maintaining revenue growth of 32%. We also accelerated


PagerDuty			28			2023 Proxy Statement

TABLE OF CONTENTS

operating leverage in the second half of the year, positioning us well for long-term, sustainable, durable growth by improving operating margin. Financial highlights from fiscal 2023 include:

•Revenue: Fiscal year revenue was $370.8 million, an increase of 31.8% year-over-year.

•Gross Margin: U.S. GAAP gross margin was 81.0% compared to 82.8% for fiscal 2022. Non-GAAP(2) gross margin was 85.0% compared to non-GAAP gross margin of 84.6% for fiscal 2022.

•Operating Loss: U.S. GAAP operating loss was $129.4 million, or GAAP operating margin of negative 34.9%, compared to a $101.7 million loss, or U.S. GAAP operating margin of negative 36.1%, for fiscal 2022. Non-GAAP operating income was $3.5 million, or non-GAAP operating margin of 0.9% compared to a $23.1 million loss, or non-GAAP operating margin of negative 8.2%, for fiscal 2022.

•Net Loss Attributable to PagerDuty, Inc.: U.S. GAAP net loss attributable to PagerDuty, Inc. was $128.4 million compared to $107.5 million for fiscal 2022. U.S. GAAP net loss per share attributable to PagerDuty, Inc. was $1.45 compared to $1.27 for fiscal 2022. Non-GAAP net income attributable to PagerDuty, Inc. was $3.7 million compared to a non-GAAP net loss of $27.0 million for fiscal 2022. Non-GAAP net income per diluted share attributable to PagerDuty, Inc. was $0.07, compared to non-GAAP net loss per diluted share of $0.32 for fiscal 2022.

•Operating Cash Flow: Net cash provided by operations was $17.0 million or 4.6% of revenue, compared to net cash used in operations of $6.0 million, or negative 2.1% of revenue, for fiscal 2022. Free cash flow was $8.5 million or 2.3% of revenue, compared to negative $12.8 million or negative 4.6% of revenue, for fiscal 2022.

(1)Our fiscal year ends on January 31. References to fiscal 2023 refer to the fiscal year ended January 31, 2023.

(2)To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use certain non-GAAP financial measures. For a full reconciliation of the U.S. GAAP to non-GAAP measures, please see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations— Non-GAAP Financial Measures” of our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2023.

FISCAL 2023 EXECUTIVE COMPENSATION RESULTS

To support our growth strategy, we have built an executive team that is comprised of highly skilled individuals with experience leading and growing some of the top technology companies. With intensified competition for talent in the technology sector and our geographic region, our executives with their extensive industry experience and track record of success are targets for recruiting from both large technology companies and emerging growth companies. We address the competition for talent through the target pay levels for our executives that are deliberately designed to support our ability to attract, motivate and retain top industry talent that is capable of driving innovation and capitalizing on growth opportunities.

Amid macroeconomic volatility and highly competitive labor market environment, fiscal 2023 compensation program was specifically focused on stabilizing our executive team and ensuring that we have the right combination of talent and a cohesive leadership team to drive the long-term success of our Company.

Consistent with our pay-for-performance philosophy and our performance and compensation objectives for fiscal 2023, discussed below, our Compensation Committee took the following key actions with respect to the compensation of our NEOs for fiscal 2023:

•Target Cash Compensation – Approved increases to base salaries ranging from 7.3% to 15.4% for our incumbent NEOs (other than Ms. Giamalis) and target bonus percentages that are consistent with those of comparable executives at companies in our compensation peer group and at our competitors.

•Short-Term Incentive Compensation – Performance-based cash bonus opportunities dependent on key financial metrics that drive our business. Approved payouts equal to approximately 141.2% of target, based solely on our achievement of such metrics. Approved sales commission payments for Mr. Justice at 118% of target based on achievement of our sales and operating margin targets.

•Long-Term Incentive Compensation – PSU Awards – Equity compensation opportunities in the form of performance-vesting restricted stock unit (“PSU”) awards under the PagerDuty, Inc. 2019 Equity Incentive Plan


PagerDuty			29			2023 Proxy Statement

TABLE OF CONTENTS

(the “2019 Equity Plan”) that may be earned based on the achievement of the annual net new annual recurring revenue (“nnARR”) growth target for fiscal 2023 and satisfaction of a three-year time-based vesting schedule. We granted PSU awards with a target grant value in the amount of $10,000,000 to Ms. Tejada and with a target grant date value of $2,100,000 to each of Messrs. Wilson and Justice, and in July 2022 as part of her new hire award, we granted a PSU award to Ms. Webb with a target grant date value in the amount of $1,665,000. Ms. Giamalis did not receive a grant in fiscal year 2023 in light of her termination. Because we did not meet our threshold performance level of 80% of target necessary to earn 50% of the target PSUs, our NEOs did not earn any payout under their PSU awards for fiscal 2023, and accordingly, the PSU awards were canceled for no consideration.

•Long-Term Incentive Compensation – RSU Awards – Equity compensation opportunities in the form of time-based restricted stock unit (“RSU”) awards with a four year time-based vesting under 2019 Equity Plan that may be settled for shares of our common stock with a target grant date fair values in the amount of $10,000,000 to Ms. Tejada and with target grant date values of $4,900,000 to each of Messrs. Wilson and Justice. In July 2022, as part of her new hire award, we granted RSU awards with a target grant date value in the amount of $3,885,000 to Ms. Webb.

EXECUTIVE COMPENSATION POLICIES AND PRACTICES

We strive to maintain sound governance standards consistent with our executive compensation policies and practices. The Compensation Committee evaluates our executive compensation program on a regular basis to ensure that it is consistent with our short-term and long-term goals, given the dynamic nature of our business and the market in which we compete for executive talent. The following summarizes our executive compensation and related policies and practices:

What we do

What we do not do

Maintain an Independent Compensation Committee. The Compensation Committee consists solely of independent directors who establish our compensation practices.

No Guaranteed Bonuses. We do not provide guaranteed bonuses to our NEOs.

Retain an Independent Compensation Advisor. The Compensation Committee has engaged its own compensation consultant when designing and evaluating our compensation policies and programs.

No Executive Retirement Plans. We do not currently offer, nor do we have plans to offer, defined benefit pension plans or any non-qualified deferred compensation plans or arrangements to our NEOs other than the plans and arrangements that are available to all employees. Our NEOs are eligible to participate in our Section 401(k) retirement savings plan on the same basis as our other employees.

Annual Executive Compensation Review. The Compensation Committee annually reviews and approves of our compensation strategy.

No Hedging or Pledging. We prohibit our employees (including our NEOs) and the non-employee members of our Board from hedging or pledging our securities.

Annual Compensation Risk Assessment. The Compensation Committee annually reviews our compensation-related risk profile to ensure that our compensation program is not reasonably likely to have a material adverse effect on us.

No Significant Tax Payments on Perquisites. We do not provide significant tax reimbursement payments (including “gross-ups” following a change in control of our Company) on perquisites or other personal benefits.

Use a Pay-for-Performance Philosophy. More than 50% of our NEO’s compensation is directly linked to corporate performance, and therefore “at risk”; we also structure their target total direct compensation opportunities with a significant long-term equity component, thereby making a substantial portion of each NEO’s target total direct compensation dependent upon our stock price and/or total stockholder return over the long term.

No Special Welfare or Health Benefits. We do not provide our NEOs with any welfare or health benefit programs, other than participation in our broad-based employee programs.

Succession Planning. We review the risks associated with our key executive officer positions to ensure adequate succession plans are in place.

No Single-Trigger Protections. We do not provide single-trigger cash payments or RSU vesting acceleration for a change-in-control event.


PagerDuty			30			2023 Proxy Statement

TABLE OF CONTENTS

EXECUTIVE COMPENSATION PHILOSOPHY AND OBJECTIVES

Our executive compensation program is guided by our overarching philosophy of paying for demonstrable performance. Consistent with this philosophy, we have designed our executive compensation program to achieve the following primary objectives:

▪Provide market competitive compensation and benefit levels that will attract, retain, motivate, and reward a highly talented team of executive officers within the context of responsible cost management;

▪Establish a direct link between our financial, operational, and strategic objectives and results, as well as our values, and the compensation of our executive officers;

▪Align the interests and objectives of our executive officers with those of our stockholders by linking the long-term incentive compensation opportunities to stockholder value creation and their cash incentives to our annual performance;

▪Ensure that our executive compensation philosophy is built on the foundation of equitable pay and that we maintain pay equity considering each executive officer’s role, commensurate experience and skills; and

▪Offer total compensation opportunities to our executive officers that are competitive, fair, and equitable.

We structure the annual compensation of our NEOs using three principal elements: base salary, annual short-term incentive compensation opportunities and long-term incentive compensation opportunities in the form of equity awards. While the pay mix may vary from year to year, the ultimate goal is to achieve our compensation objectives as described above.

While we have not adopted strict year-to-year policies or guidelines for allocating compensation between current and long-term compensation, between cash and non-cash compensation, or among different forms of non-cash compensation, we believe our executive compensation program is reasonable, competitive and appropriately balances our goals and aligns NEOs’ interests with those of our stockholders. To ensure this alignment and to motivate and reward individual initiative and effort, a substantial portion of our NEOs’ target annual total direct compensation opportunity is both variable in nature and “at-risk.”

Our compensation philosophy emphasizes variable compensation that appropriately rewards our NEOs through two separate compensation elements:

▪First, we provide the opportunity to participate in our annual short-term incentive compensation plan (or, in the case of our Chief Revenue Officer, a sales commission plan), which provides cash payments based on the level of attainment of the short-term financial, operational, and strategic objectives set forth in our annual operating plan.

▪Equity awards comprise the primary “at-risk” portion of our NEOs’ compensation packages. In order to strengthen our pay-for-performance philosophy, the fiscal 2023 PSU awards comprise a majority of our NEOs’ target total direct compensation opportunities, the value of which depends entirely on a rigorous internal performance metric that drives long-term growth and influences the appreciation in the value of our common stock, thereby further incentivizing our NEOs to build sustainable long-term value for the benefit of our stockholders.

Each year, these variable pay elements ensure that our NEOs’ target total direct compensation is variable (rather than fixed), such that the amounts payable are commensurate with our actual performance and aligned with stockholder value creation. We believe that this design provides balanced incentives for our NEOs to drive financial performance and long-term growth.


PagerDuty			31			2023 Proxy Statement

TABLE OF CONTENTS

STOCKHOLDER ADVISORY VOTES ON NEO COMPENSATION

At our 2022 Annual Meeting of Stockholders, we conducted a non-binding stockholder advisory vote on the compensation of our named executive officers disclosed in our proxy statement filed in fiscal 2023 (commonly known as a “Say-on-Pay” vote). Approximately 63.1% of the shares represented and entitled to vote on the matter voted to approve, on an advisory basis, the fiscal 2022 compensation of our named executive officers.

Following this advisory vote, the Board and the Compensation Committee conducted an expanded stockholder outreach effort to understand the full range of stockholder perspectives that drove the decline in the Say-on-Pay support from the prior year and to develop appropriate, responsive actions.

Following our 2022 Annual Meeting of Stockholders and through the end of fiscal 2023, we held engagement meetings with our stockholders that touched on a number of topics, including our executive compensation program, corporate governance and sustainability practices. We gained valuable perspectives from our stockholders, which were conveyed to the full Board and relevant Board committees.

Stockholder Engagement Highlights

a.Top 18 stockholders contacted, representing ~ 61% of outstanding common stock

b.10 stockholders, representing ~43% of outstanding common stock, participated in the engagement meetings

c.7 meetings with stockholders representing ~35% of outstanding common stock were attended by at least one independent board member

Key Participants

a.Mr. Nelson, Chair of the Compensation Committee, and Mr. Dholakia, Member of the Compensation Committee

b.Representatives from the legal, investor relations, and sustainability teams

Throughout the engagement meetings, we heard a diverse set of perspectives. Our stockholders provided positive feedback on the Company’s strong strategy execution and commitment to social impact and ESG initiatives. Stockholders were generally supportive of our executive compensation program and appreciated the Compensation Committee’s efforts to retain key employees in support of the Company’s transformative growth effort.


PagerDuty			32			2023 Proxy Statement

TABLE OF CONTENTS

A majority of stockholders expressed a concern regarding a limited ratio of performance-based equity incentives in our CEO’s long-term incentive program design, which the Compensation Committee addressed by increasing the ratio of PSUs in fiscal 2023 to 50% (from 17% in fiscal 2022) of the CEO’s annual target long-term incentive award opportunity. The same ratio of PSUs was maintained for fiscal 2024 equity awards. Specific feedback that we received from our stockholders and our responses to their perspectives are summarized below.



What we heard			What we did in response


A majority of stockholders expressed a preference to see at least 50% of the CEO’s long-term incentive opportunities delivered in the form of PSUs			Consistent with the stockholder feedback obtained prior to our 2022 annual meeting, for fiscal 2023, the Compensation Committee increased the ratio of PSUs for our Chief Executive Officer to 50% from 17% of the long-term incentive opportunity to foster a stronger alignment with the interests of our stockholders. Underscoring the rigor of the performance targets and our commitment to our pay-for-performance philosophy, fiscal 2023 PSUs were canceled in full based on the achieved performance results that fell below the aggressive target and threshold performance level. In response to stockholder feedback obtained following our 2022 annual meeting, the Compensation Committee maintained the 50% ratio of PSUs for our CEO’s long-term incentive program in fiscal 2024. In addition to the Compensation Committee maintaining the 50% ratio of PSUs for our CEO’s long-term incentive program, the Compensation Committee also maintained the other NEOs 70%/30% ratio of RSUs and PSUs to ensure there is a sufficient ratio of performance awards for all NEOs.


Several stockholders expressed a preference to see diversified and expanded performance metrics in the long-term incentive program design to align with our broader long-term growth priorities			In response to stockholder feedback, for fiscal 2024 the Compensation Committee has added a relative TSR metric to our PSU awards to incentivize our relative TSR performance as compared to the S&P Software & Services Select Index. We believe that this enhancement will strengthen the alignment between the long-term incentive compensation opportunity provided to our CEO and our other named executive officers with creating sustainable long-term stockholder value while maintaining net new ARR as our leading objective for generating future growth. Net new ARR remains a key driver of our long-term growth and has been the financial performance measure used in our PSU awards for the past two fiscal years. We believe that using annual net new ARR growth goals encourage our named executive officers to work diligently to perform at “stretch” performance levels each year. The two performance measures for our fiscal 2024 PSU awards have been weighted 60% for net new ARR and 40% for relative TSR.


Several stockholders inquired about the rigor of the net new ARR metric for the PSU awards			The Compensation Committee goal in setting executive compensation is to balance aligning our executive compensation to stockholder value and long-term growth priorities as well as retaining the executives. The Compensation Committee believes that the performance goals were suitably rigorous, as demonstrated by the fact that the PSU awards granted to our NEOs in fiscal 2023 did not pay out because the threshold performance level was not achieved despite the company exceeding guidance and consensus expectations consistently. The Compensation Committee seeks to ensure that the target levels established for our PSU awards are sufficiently rigorous such that achievement requires a high level of performance by our named executive officers.


PagerDuty			33			2023 Proxy Statement

TABLE OF CONTENTS



What we heard			What we did in response


Several stockholders wanted to understand the rationale for negative operating margin performance hurdles			As part of our progress toward achieving profitability, our Compensation Committee believed that operating margin performance hurdles, despite being negative, aligned with the internal operating plan and reflected meaningful stretch achievement levels. We delivered strong revenue and non-GAAP operating margin performance during fiscal 2023 that exceeded expectations and we believe the annual incentive program was instrumental in driving these performance outcomes.


Several stockholders inquired about executive retention and wanted to ensure the executive compensation program supported continuity and cohesiveness of the leadership team			The Compensation Committee remains focused on ensuring effectiveness and stockholder alignment of our executive compensation program. Target incentive opportunities approved for fiscal 2023 reflected industry pay benchmarks for comparable executive roles and were designed to provide incentive value to support retention and mitigate costs and strategic disruption associated with the need to replace executive team members. Consistent with our commitment to pay-for-performance, the Compensation Committee did not adjust performance targets for fiscal 2023 PSU program despite the macroeconomic volatility in the second half of the year in alignment with our stockholders’ experience over the same period. Fiscal 2023 PSUs were forfeited in their entirety due to the achieved performance result that fell below the threshold performance level. The Compensation Committee remains focused on properly incentivizing our executive officers and rewarding performance that is aligned with the Company’s strategy, values and stockholder returns.

We value the opinions of our stockholders. Stockholder feedback, including through direct discussion and prior stockholder votes, is reported to our Board and the Compensation Committee as it relates to executive compensation throughout the year. Our goal is to be responsive to our stockholders when making compensation decisions for our executive officers, including our NEOs, and ensure we understand and address their concerns and observations. Our Board and the Compensation Committee will consider the outcome of this year’s Say-on-Pay vote (see Proposal 3 in this Proxy Statement) and future Say-on-Pay votes, as well as feedback received throughout the year, when making executive compensation decisions.

In addition, at our 2022 Annual Meeting of Stockholders, we conducted a non-binding stockholder advisory vote on the frequency of future Say-on-Pay votes (commonly known as a “Say-When-on-Pay” vote). Our stockholders expressed a preference for holding future Say-on-Pay votes on an annual, rather than a biennial or triennial, basis. Consistent with the recommendation of our Board and in recognition of this preference and other factors considered, our Board determined that, until the next Say-When-on-Pay vote, we will hold annual Say-on-Pay votes. Following the 2023 Annual Meeting of Stockholders to which this Proxy Statement relates, our next Say-on-Pay vote will take place at our 2024 Annual Meeting of Stockholders.

Compensation-Setting Process

ROLE OF COMPENSATION COMMITTEE

The Compensation Committee discharges many of the responsibilities of our Board relating to the compensation of our NEOs and the non-employee members of our Board. The Compensation Committee is primarily responsible for establishing and reviewing our general compensation strategy. In addition, the Compensation Committee has overall responsibility for overseeing our compensation and benefit plans and policies generally, as well as overseeing and evaluating the compensation plans, policies, and practices applicable to our NEOs, and administering our equity incentive plans. The Compensation Committee reviews and approves annually all compensation decisions relating to the compensation of our NEOs.

In carrying out its responsibilities, the Compensation Committee evaluates our compensation policies and practices with a focus on the degree to which these policies and practices reflect our executive compensation philosophy, develops strategies


PagerDuty			34			2023 Proxy Statement

TABLE OF CONTENTS

and makes decisions that it believes further our philosophy or align with developments in compensation practices, and reviews the performance of our NEOs when making decisions with respect to their compensation.

The Compensation Committee’s authority, duties, and responsibilities are further described in its charter, which is reviewed annually and revised and updated as warranted. The charter is available on our website at https://investor.pagerduty.com/governance/governance-documents.

The Compensation Committee retains an independent compensation consultant (as described below) to provide support in its review and assessment of our executive compensation program.

SETTING TARGET TOTAL DIRECT COMPENSATION

The Compensation Committee reviews the base salary levels, annual short-term incentive opportunities, and long-term incentive compensation opportunities of our NEOs and all related performance criteria at the beginning of each year, or more frequently as warranted. Adjustments are generally effective in the first quarter of the fiscal year.

In making decisions about the compensation of our NEOs the Compensation Committee relies primarily on the general experience of its members and subjective considerations of various factors, including the following:

•our executive compensation program objectives;

•our performance against the financial, operational, and strategic objectives established by the Compensation Committee and our Board;

•each individual NEO’s knowledge, skills, experience, qualifications, and tenure relative to other similarly-situated executives at the companies in our compensation peer group and in selected broad-based compensation surveys;

•the scope of each NEO’s role and responsibilities compared to other similarly-situated executives at the companies in our compensation peer group and in selected broad-based compensation surveys;

•the performance of each individual NEO, based on a subjective assessment of his or her contributions to our overall performance, ability to lead his or her business unit or function, and work as part of a team;

•the potential of each individual executive officer to contribute to our long-term financial, operational, and strategic objectives;

•our CEO’s compensation relative to that of our NEOs, and pay equity among our NEOs;

•our financial performance relative to our compensation and performance peers;

•the compensation practices of our compensation peer group and reflected in selected broad-based compensation surveys and the positioning of each NEO’s compensation in a ranking of compensation levels based on an analysis of competitive market data;

•the feedback received from our stockholders and the results of our annual say-on-pay advisory votes of our stockholders; and

•the recommendations of our CEO with respect to the compensation of our other NEOs.

These factors provide the framework for compensation decision-making and final decisions regarding the compensation opportunity for each NEO. No single factor is determinative in setting compensation levels, nor is the impact of any individual factor on the determination of pay levels quantifiable.

The Compensation Committee does not weight these factors in any predetermined manner, nor does it apply any formulas in developing its compensation recommendations. The members of the Compensation Committee consider all of this information in light of their individual experience, knowledge of the Company, knowledge of the competitive market, knowledge of each NEO, and business judgment in making their recommendations.

The Compensation Committee also considers the potential risks in our business when designing and administering our executive compensation program, and we believe our balanced approach to performance measurement and pay delivery works to avoid misaligned incentives for individuals to undertake excessive or inappropriate risk.


PagerDuty			35			2023 Proxy Statement

TABLE OF CONTENTS

ROLE OF MANAGEMENT

In discharging its responsibilities, the Compensation Committee works with members of our management, including our CEO. Our management assists the Compensation Committee by providing information on corporate and individual performance, competitive market data, and management’s perspective and recommendations on compensation matters.

Typically, our CEO will make recommendations to the Compensation Committee regarding compensation matters, including adjustments to annual cash compensation, long-term incentive compensation opportunities, and program structures, for our NEOs, except with respect to her own compensation. At the beginning of each year, our CEO reviews the performance of our other NEOs based on such individual’s level of success in accomplishing the business objectives established for him or her for the prior year and his or her overall performance during that year, and then shares these evaluations with, and makes recommendations to, the Compensation Committee for each element of compensation as described above. The annual business objectives for each NEO are developed through mutual discussion and agreement between our CEO and the other NEOs and are reviewed with our Board. The Compensation Committee reviews and discusses these recommendations and proposals with our CEO and uses them as one factor in determining and approving the compensation for our other NEOs.

Our CEO often attends meetings of our Board and the Compensation Committee at which executive compensation matters are addressed, and makes recommendations to our Compensation Committee regarding the total compensation of the other NEOs, but is not present during discussion, deliberation and decisions regarding her own compensation. The Compensation Committee then reviews the recommendations and other data and makes decisions as to the total compensation for each NEO, as well as the allocation of the amount of total compensation between base salary, short-term incentives, and long-term incentives.

ROLE OF COMPENSATION CONSULTANT

The Compensation Committee engages an external compensation consultant to provide information, analysis, and other advice relating to our executive compensation program, to assist the Compensation Committee in developing appropriate incentive compensation plans for our executive officers, to provide it with advice and ongoing recommendations regarding material executive compensation decisions resulting from its annual executive compensation review, and to review the compensation proposals of management. The compensation consultant reports directly to the Compensation Committee and its chair, and serves at the discretion of the Compensation Committee, which reviews the engagement annually.

For fiscal 2023, the Compensation Committee retained Compensia, Inc. (“Compensia”), a national compensation consulting firm, to serve as its compensation advisor to advise on executive compensation matters, including competitive market pay practices for our NEOs, and with the data analysis and selection of the compensation peer group.

During fiscal 2023, Compensia attended the meetings of the Compensation Committee (both with and without management present) as requested and provided various services, including the following:

•consulting with the Compensation Committee chair and other members between Compensation Committee meetings;

•providing competitive market data based on the compensation peer group and data cuts from selected broad-based compensation surveys for our NEO positions and evaluating how the compensation we pay our NEOs compares both to our performance and to how the companies in our compensation peer group and the broad-based compensation surveys compensate their executives;

•reviewing and analyzing the base salary levels, annual incentive short-term incentive opportunities, and long-term incentive compensation opportunities of our NEOs and other executive officers;

•reviewing and analyzing the cash and equity compensation levels for the non-employee members of our Board;

•assessing executive compensation trends within our industry, and updating on corporate governance and regulatory issues and developments;

•reviewing competitive market design and practices for short-term incentive compensation and long-term incentive compensation programs in the software sector;;

•reviewing competitive market design and practices for stock ownership policies;

•projecting equity usage in fiscal 2023 and conducting a “burn rate” and “equity overhang” analysis;


PagerDuty			36			2023 Proxy Statement

TABLE OF CONTENTS

•reviewing our executive compensation disclosure assisting with the preparation of our CEO pay ratio disclosure;

•reviewing and updating the compensation peer group;

•assessing compensation risk to determine whether our compensation policies and practices are reasonably likely to have a material adverse impact on the Company; and

•supporting other ad hoc matters throughout the year.

Compensia did not provide any services to us in fiscal 2023 other than the consulting services to the Compensation Committee.

The Compensation Committee regularly reviews the objectivity and independence of the advice provided by its compensation consultant on executive compensation matters. The Compensation Committee has evaluated Compensia’s engagement, and based on the six factors for assessing independence and identifying potential conflicts of interest that are set forth in Exchange Act Rule 10C-1(b)(4), the listing standards of the NYSE, and such other factors as were deemed relevant under the circumstances, has determined that Compensia is independent and that its relationship with Compensia and the work of Compensia on behalf of the Compensation Committee did not raise any conflict of interest or similar concerns.

COMPETITIVE POSITIONING

For purposes of assessing our executive compensation against the competitive market, the Compensation Committee reviews and considers the compensation levels and practices of a select group of peer companies. This compensation peer group consists of technology companies that are similar to us in terms of revenue, market capitalization, geographical location, and industry sector.

The companies in the compensation peer group for fiscal 2023 were approved by the Compensation Committee in August 2021 on the basis of their similarity to us, as determined using the following criteria:

•Location – public companies headquartered in the United States, with a preference for California-based companies;

•Industry Sector – companies in the software or internet services sector;

•Revenue – approximately 0.4x to approximately 2.5x our last four fiscal quarters revenue of approximately $227 million (approximately $90 million to $570 million);

•Market Capitalization – approximately 0.3x to approximately 3.0x our then current 30-day average market capitalization of approximately $3.5 billion (approximately $1.0 billion to $10.4 billion);

•Growth – companies with one-year revenue growth greater than 10%; and

•Market Status – preference for companies having recently completed their initial public offering of equity securities.

In selecting the fiscal 2023 compensation peer group, we selected companies that, as a group, have a median revenue and market capitalization similar to our revenue and market capitalization.

Our compensation peer group for fiscal 2023 included the following companies:


Alteryx	Domo	Rapid 7
Anaplan	Everbridge	Smartsheet
AppFolio	Fastly	Sprout Social
Asana	Five9	Workiva
Bill.com Holdings	JFrog	Yext
BlackLine	Momentive Global	Zuora
Coupa Software	New Relic


PagerDuty			37			2023 Proxy Statement

TABLE OF CONTENTS

Our Compensation Committee considered, as a guide, the compensation practices of the compensation peer group to assess the competitiveness of each compensation element and overall compensation levels (base salary, target short-term incentive opportunities, and long-term incentive compensation).

To analyze the compensation practices of the companies in our compensation peer group, Compensia gathered data from public filings (primarily proxy statements) of the peer group companies, as well as from a peer custom cut (other than Domo and Sprout Social which do not participate in the survey) of the Radford Global Technology Survey covering our primary and reference peer groups. This market data was then used as a reference point for the Compensation Committee to assess our current compensation levels in the course of its deliberations on compensation forms and amounts.

The Compensation Committee reviews our compensation peer group each year (unless there have been significant changes to either our business model or market capitalization or our peer companies’ business model or market capitalization or significant merger and acquisition activity involving our peer companies, in which case the Compensation Committee may review our compensation peer group more frequently) and makes adjustments to its composition if warranted, taking into account changes in both our business and the businesses of the companies in the peer group.

Executive Transition

COMPENSATION ARRANGEMENTS FOR MS. WEBB

In connection with her appointment as our Senior Vice President, Legal and General Counsel, we entered into an employment offer letter dated March 25, 2022 (the “Employment Letter”) with Ms. Webb. Pursuant to the Employment Letter, our initial compensation arrangements with Ms. Webb were as follows:

•an initial annual base salary of $400,000;

•a target annual cash bonus amount equal to 55% of her annual base salary and representing approximately 35% of total cash compensation;

•an RSU award granted on July 2, 2022 under our 2019 Equity Plan with a target grant value of $3,885,000 that will vest and settle as to 1/16th of the total number of units subject to the award on each quarterly anniversary of July 2, 2022, subject to her Continuous Service (as defined in our 2019 Equity Plan) through each applicable vesting date; and

•a PSU award granted on July 2, 2022 under our 2019 Equity Plan with a target grant value of $1,665,000 that is subject to the same performance conditions and vesting requirements as the PSU awards granted to our other NEOs on April 2, 2022.

Ms. Webb was also designated as a Tier 2 participant in the Severance Policy.

Ms. Webb’s Employment Letter was approved by the Compensation Committee. In establishing her initial compensation arrangements, we took into consideration the requisite experience and skills that a qualified candidate would need to assume the legal and related responsibilities for a growing business in a dynamic and ever-changing environment, the competitive market for similar positions at other comparable companies based on a review of compensation survey data, and the need to integrate her into the executive compensation structure that we had developed since our initial public offering of our equity securities, balancing both competitive and internal equity considerations. For a summary of the material terms and conditions of Ms. Webb’s post-employment compensation arrangements, see “Executive Compensation – Potential Payments upon Termination or Change in Control.”


PagerDuty			38			2023 Proxy Statement

TABLE OF CONTENTS

Compensation Elements

In fiscal 2023, the target total direct compensation of our CEO and our two other NEOs who served through all of fiscal 2023 as executive officers(1) was intended to reward performance and retain an effective leadership team while also incentivizing our executive officers to create sustainable, long-term stockholder value. The mix of the following compensation elements, which was almost entirely variable in nature, provided a balanced percentage of performance-based and service-based compensation opportunities for our CEO and these NEOs. The principal elements of our executive compensation program, and the purpose of each element, were as follows:

(1) The target total direct compensation of Ms. Giamalis and Ms. Webb is not included in the average compensation presented for our NEOs (excluding our CEO) as neither executive officer served in that capacity for the entire 12 months of fiscal 2023.

BASE SALARY

Base salary represents the fixed portion of the compensation of our NEOs and is an important element of compensation intended to attract and retain highly-talented individuals. Generally, we use base salary to provide each NEO with a specified level of cash compensation during the year with the expectation that he or she will perform his or her responsibilities to the best of his or her ability and in our best interests.

Generally, we establish the initial base salaries of our NEOs through arm’s-length negotiation at the time we hire the individual, taking into account his or her position, qualifications, experience, salary expectations, and the base salaries of our other NEOs. Thereafter, the Compensation Committee reviews the base salaries of our NEOs each year as part of its annual compensation review, with input from Ms. Tejada (except with respect to her own base salary) and makes adjustments as it determines to be reasonable and necessary to reflect the scope of a NEO’s performance, individual contributions and responsibilities, position in the case of a promotion, and market conditions.

In March 2022, the Compensation Committee reviewed the base salaries of our executive leadership team and direct reports to Ms. Tejada, including our other NEOs, taking into consideration the competitive market analysis prepared by its compensation consultant, the recommendations of Ms. Tejada (except with respect to her own base salary), and the other factors described in “Compensation-Setting Process – Setting Target Total Direct Compensation” above. Following this review, the Compensation Committee approved base salary increases for each of our NEOs (other than Ms. Giamalis, in light of her termination of employment), to bring their base salaries to levels that were comparable to that of the competitive market


PagerDuty			39			2023 Proxy Statement

TABLE OF CONTENTS

(based on similarly situated executives at the companies in our compensation peer group and in selected broad-based compensation surveys), with such adjustments to be effective April 1, 2022. These adjustments are part of the Compensation Committee’s goal to increase base salaries gradually over time, as needed, to reflect amounts payable to individuals in the same positions at comparable public companies and to reflect strong performance in fiscal 2022.

The base salaries of our incumbent NEOs for fiscal 2022 and fiscal 2023 as approved in March 2022 were as follows:



NEO	Fiscal 2022 Base Salary ($)(1)	Fiscal 2023 Base Salary ($)(2)	Percentage Increase (%)

Ms. Tejada	520,000	600,000	15.4
Mr. Wilson	425,000	455,882	7.3
Mr. Justice	400,000	450,000	12.5
Ms. Giamalis	339,539	339,539	—

(1) The base salary amounts for our NEOs (other than Mr. Justice) are based on the NEO’s ending base salary for fiscal 2022.

(2) The base salary amounts for our NEOs (other than Mr. Justice) are based on the NEO’s ending base salary for fiscal 2023.

Subsequently, in connection with her appointment as our Senior Vice President, Legal and General Counsel in April 2022, the Compensation Committee approved an initial annual base salary for Ms. Webb of $400,000. In establishing her initial base salary, the Compensation Committee took into consideration Ms. Webb’s prior experience, the competitive market for similar positions at other comparable companies based on a review of market data from the compensation consultant and the base salaries of our other executive officers.

The base salaries paid to our NEOs during fiscal 2023 are set forth in the “Summary Compensation Table for Fiscal Year 2023” below under the heading “Executive Compensation.”

SHORT-TERM INCENTIVE AWARDS

In March 2022, the Compensation Committee approved the Fiscal 2023 Short-Term Incentive Program (the “Fiscal 2023 Bonus Plan”) under the PagerDuty, Inc. Cash Incentive Bonus Plan to provide financial incentives to participants (including each NEO other than Mr. Justice, who participated in a separate sales commission plan) to achieve our key annual financial, operational, and strategic objectives as set forth in our fiscal 2023 annual operating plan and to maximize individual performance.

The Compensation Committee approved the Fiscal 2023 Bonus Plan after taking into consideration the objectives set forth in our fiscal 2023 annual operating plan approved by our Board. The Fiscal 2023 Bonus Plan provided for annual cash bonus payouts to each of our NEO participants based entirely on our level of achievement with respect to designated corporate performance objectives. To be eligible to earn a bonus under the Fiscal 2023 Bonus Plan, a participant had to commence employment with us no later than 90 days from the end of the applicable program period, which aligned to our fiscal year, and] remain continually employed by, and in good standing with, us through the applicable payout date of the bonus.

TARGET ANNUAL CASH BONUS AMOUNTS

For purposes of the Fiscal 2023 Bonus Plan, the amount of the annual cash bonus payout each participant was eligible to earn was based upon a percentage of such participant’s annual base salary as of the beginning of the fiscal year. In March 2022, the Compensation Committee reviewed the target annual cash bonus amounts of our executive leadership team and direct reports to Ms. Tejada, including our other NEOs, taking into consideration the competitive market analysis prepared by its compensation consultant, the recommendations of Ms. Tejada (except with respect to her own target annual cash bonus amount), and the other factors described in “Compensation-Setting Process – Setting Target Total Direct Compensation” above. Following this review, the Compensation Committee maintained the target annual cash bonus amounts (as a percentage of base salary) for Ms. Tejada, Mr. Wilson and Ms. Giamalis at their fiscal 2022 levels, with such amounts to be effective for fiscal 2023. In connection with her appointment as our Senior Vice President, Legal and General Counsel in July 2022, the Compensation Committee approved a target annual cash bonus amount for Ms. Webb equal to 55% of her annual


PagerDuty			40			2023 Proxy Statement

TABLE OF CONTENTS

base salary and representing 35% of her total cash compensation based on a review of market data from the compensation consultant.

The target bonus amounts of our NEOs (other than Mr. Justice) for purposes of the Fiscal 2023 Bonus Plan were as follows:



NEO	Fiscal 2023 Target Bonus (as a Percentage of Base Salary) (%)	Fiscal 2023 Target Bonus (as a Percentage of Total Cash Compensation) (%)	Fiscal 2023 Target Bonus Amount ($)(1)

Ms. Tejada	100	50	600,000
Mr. Wilson	70	41	319,118
Ms. Webb (2)	55	35	220,000
Ms. Giamalis (3)	40	29	135,816

(1)The Target Bonus Amount for our NEOs (other than Mr. Justice) is based on the NEO’s ending annualized base salary for fiscal 2023.

(2)Ms. Webb’s Fiscal 2023 Target Bonus Amount is shown as if Ms. Webb started at the beginning of fiscal 2023.

(3)Ms. Giamalis’ employment with us terminated on May 6, 2022 and, therefore, she was not eligible to receive a bonus payment under the Fiscal 2023 Bonus Plan.

Potential bonus payouts for our NEOs under the Fiscal 2023 Bonus Plan could range from zero to 200% of their target annual cash bonus amount, as determined by the Compensation Committee.

CORPORATE PERFORMANCE MEASURES

The Compensation Committee selected GAAP revenue and Non-GAAP operating margin as the corporate performance measures under the Fiscal 2023 Bonus Plan because the Compensation Committee believed that these measures were the best indicators of our successful execution of our annual operating plan. The Compensation Committee carefully selected rigorous performance targets in order to provide significant incentives to our NEOs if they achieved the target performance levels. For purposes of the Fiscal 2023 Bonus Plan, revenue was to be weighted as 75% of the target annual cash bonus amount and operating margin was to be weighted at 25% of the target annual cash bonus amount.

The actual bonus amounts attributable to each of the performance measures could be greater or less than the target level established for revenue of $363 million and for operating margin of (5%), as reflected in the following graphs:


PagerDuty			41			2023 Proxy Statement

TABLE OF CONTENTS

For purposes of the Fiscal 2023 Bonus Plan:

•“Revenue” meant our GAAP revenue as defined in our periodic reports filed with the Securities and Exchange Commission for fiscal 2023.

•The actual bonus amount attributable to the revenue performance measure could be greater or less than the target established for revenue of $363 million. Achievement of less than 90% of the target established for revenue would result in a bonus payout of 0%. Achievement of 90% of the target established for revenue would result in a bonus payout of 50% of target. Achievement of 108% of the target established for revenue would result in a bonus payout of 200% of target.

•“Operating margin” meant our non-GAAP operating margin(1) as defined in our periodic reports filed with the Securities and Exchange Commission for fiscal 2023. We define “non-GAAP operating margin” as GAAP operating margin excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, and restructuring costs. We believe that these expenses are not necessarily reflective of operational performance during a period. In particular, we believe the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.

•The actual bonus amount attributable to the operating margin performance measure could be greater or less than the target established for operating margin of (5%). Achievement of less than 80% of the target established for operating margin would result in a bonus payout of 0%. Achievement of 80% of the target established for operating margin would result in a bonus payout of 50% of target. Achievement of 200% of the target established for operating margin would result in a bonus payout of 200%.

(1)To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use certain non-GAAP financial measures. For a full reconciliation of the U.S. GAAP to non-GAAP measures, please see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations— Non-GAAP Financial Measures” of our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2023.

Each measure is independent of the other. The payout for attainment between any two achievement levels for the revenue and operating margin performance measures described above would be determined on a straight-line interpolation basis.

FISCAL 2023 SHORT-TERM INCENTIVE AWARD

In March 2023, the Compensation Committee determined the annual cash bonus payouts under the Fiscal 2023 Bonus Plan for our employees, including our NEOs who participated in the Fiscal 2023 Bonus Plan. The Compensation Committee reviewed our actual performance against the aggressive goals on accelerated growth that it set for fiscal 2023 and certified that we achieved revenue representing attainment of 102.2% of our revenue target for the year resulting in a payout percentage of 121.6%. The Compensation Committee also certified that we had achieved an operating margin representing


PagerDuty			42			2023 Proxy Statement

TABLE OF CONTENTS

218% of our operating margin target for the year resulting in a payout percentage of 200%, the maximum achievable payout. These achievements were even more exceptional when considering that the Compensation Committee established aggressive goals in the beginning of the year that if achieved would ensure revenue growth on a larger base, and they laid a path to improve long term operating leverage. Both our revenue and operating margin goal targets were higher than our target and actual achievement levels for fiscal 2022.


	FY23 Revenue (GAAP)


	Payout (%)	Performance to Target (%)	Financial ($M)

Minimum Threshold	50	90	326.7
Target	100	100	363.0
	120	102	370.3
	140	104	376.5
Maximum	200	108	392.0
Actual		102	370.8


	FY23 Op Loss Margin (Non-GAAP)


	Payout (%)	Performance to Target (%)	Op Loss Margin (%)

Minimum Threshold	50	80	(6.0)
Target	100	100	(5.0)
	120	120	(4.0)
	140	160	(2.0)
Maximum	200	200	—
Actual		200	0.9

Based on the respective weighting of each corporate performance measure, the Compensation Committee approved bonuses for each of our NEOs who participated in the Fiscal 2023 Bonus Plan equal to approximately 141.2% of their target bonus amounts, as reflected below:



NEO	Target Annual Cash Bonus Payout ($)(1)	Actual Annual Cash Bonus Payout ($)	Percentage of Target Annual Cash Bonus Actually Paid (%)

Ms. Tejada	587,068	828,941	141.2
Mr. Wilson	363,623	445,660	141.2
Ms. Webb(2)	169,972	240,001	141.2

(1)Target annual cash bonus payout amounts for the NEOs listed in the table above are calculated based on their annualized base salary, and not their base salary amounts earned in fiscal 2023.

(2)The Bonus payable to Ms. Webb is pro-rated for the period of time in which Ms. Webb was eligible to participate in the Program during the Program Year when hired by the Company.


PagerDuty			43			2023 Proxy Statement

TABLE OF CONTENTS

SALES COMMISSION PLAN

As our Executive Vice President, Chief Revenue Officer, Mr. Justice’s short-term incentive compensation was based primarily on his ability to drive annual sales results and secondarily on meeting our non-GAAP operating margin performance goal described above under our Fiscal 2023 Bonus Plan. Pursuant to our Fiscal 2023 Sales Compensation Plan (the “2023 Sales Plan”) under the PagerDuty, Inc. Cash Incentive Bonus Plan, Mr. Justice was eligible to earn a target variable commission equal to 100% of his fiscal 2023 annual base salary, or $450,000

In fiscal 2023, 80% of Mr. Justice’s annual commission was based on our sales team’s performance in achieving our annual nnARR bookings target for the year. This amount was measured and paid monthly based on our actual performance against our nnARR targets for the year. This commission amount was to be paid linearly until he reached our target performance level for the year, at which point various accelerators would be triggered that could pay anywhere from two and one-half times the commission rate if we exceeded the target performance level up to 110% of the target performance level, up to three times the commission rate if we exceeded 110% of the target performance level up to 120% of the target performance level, and up to four times the commission rate if we exceeded 120% of the target performance level up to 130% of the target performance level, with payout capped at 200% of the sales team’s target performance level. The “commission rate” was calculated as the target commission divided by the nnARR target. Mr. Justice earned an aggregate payout for fiscal 2023 of $352,468 by meeting 80% of the target with respect to this 80% portion of his commission. The performance target levels for annual nnARR are not disclosed because we believe to do so would be competitively harmful, as it would give competitors insight into our strategic and financial planning processes. The Compensation Committee set the target for the nnARR performance measure at a level that it determined to be rigorous and challenging and that would require extraordinary efforts, excellent leadership, effective leveraging of our competencies, and a focus on driving results. In addition, the Compensation Committee selected a nnARR target that exceeded our prior year performance.

The remaining 20% of Mr. Justice’s annual commission for fiscal 2023 was dependent on our operating margin performance based on the same performance target and payout methodology that was established for the Fiscal 2023 Bonus Plan as described above. This amount was to be measured and paid after the end of the year based on actual performance against our operating margin target under the Fiscal 2023 Bonus Plan. As under the Fiscal 2023 Bonus Plan, this payout was also capped at 200% of our operating margin performance. Since we achieved operating margin representing 218% of our operating margin target for the year, Mr. Justice earned a payout of $180,000 with respect to this 20% portion of his commission.

Based on this performance, for fiscal 2023, Mr. Justice earned a cash bonus under his sales commission plan in the amount of $532,467, or 118% of his target variable commission.

The annual short-term incentive compensation payments made to our NEOs for fiscal 2023 are set forth in the “Summary Compensation Table for Fiscal Year 2023” below under the heading “Executive Compensation.”

LONG-TERM INCENTIVE COMPENSATION

We view long-term incentive compensation in the form of equity awards as a critical element of our executive compensation program. The realized value of these equity awards bears a direct relationship to our stock price, and, therefore, these awards are an incentive for our NEOs to create value for our stockholders. Equity awards also help us retain qualified executive officers in a competitive market. We currently grant equity awards under the PagerDuty, Inc. 2019 Equity Incentive Plan (the ‘2019 Equity Plan”).

Long-term incentive compensation opportunities in the form of equity awards are granted to our executive officers, including our NEOs, by the Compensation Committee. The amount and forms of such equity awards are determined after considering the factors described in “Compensation-Setting Process – Setting Target Total Direct Compensation” above. The amounts of the equity awards are also intended to provide competitively-sized awards and resulting target total direct compensation opportunities that the Compensation Committee believes are reasonable and appropriate taking into consideration the factors described in the preceding sentence. In addition, the Compensation Committee’s goal of increasing the long-term incentive compensation was to reinforce retention considering our CEO’s high vested percentage and low unvested value. The Compensation Committee’s decision to update the ratio of our RSU and PSU grant mix was a result of the committee balancing market practice and stockholder value creation.


PagerDuty			44			2023 Proxy Statement

TABLE OF CONTENTS

ANNUAL EQUITY AWARDS

In March 2022, the Compensation Committee decided to grant PSU awards and RSU awards that may be settled for shares of our common stock to our NEOs under the 2019 Equity Plan. The PSU awards strengthen our “pay-for-performance” philosophy, because PSUs are only earned upon achievement of a key performance goal that drives our business and our stockholder value. Therefore, these awards increase the alignment between the interests of our executive officers and stockholders. The Compensation Committee also decided to increase the CEO’s annual target long-term incentive award opportunity PSU ratio from 17% of the equity award being PSUs for fiscal 2022 to 50% for fiscal 2023 after reviewing market data as well stockholder alignment.

Payout of the fiscal 2023 PSU awards was directly contingent upon the Company’s achievement of a rigorous performance metric. RSU awards that vest over a multi-year period also remain an important part of our executive compensation program. While RSUs also serve as a “pay-for-performance” tool as the awards appreciate in value as stock price increases, the RSU awards provide more stability to equity-based incentive awards and encourage retention over a multi-year period.

The target grant value of the equity awards and the allocation between PSU awards and RSU awards granted to our executive officers, including our NEOs, in March 2022 were determined by the Compensation Committee after considering the intensely competitive talent market in which we operate, the value of our highly experienced executive team led by Ms. Tejada, the market data and recommendations provided by our compensation consultant, including data regarding the cost of replacing executives and recommendations regarding the retentive, unvested value of current holdings for each executive, as well as the other factors described in “Compensation-Setting Process – Setting Target Total Direct Compensation” above.

Ms. Tejada’s equity incentive opportunity reflected her overall responsibility for our performance and success. In addition, further differentiation was made among our NEOs based on the Compensation Committee’s review of the competitive market data for their respective positions and its desire to smooth transition to a normalized annual grant program.

The equity awards granted to our NEOs (other than Ms. Giamalis, due to her termination of employment, and Ms. Webb whose equity awards were granted July 2, 2022 due to her April 25, 2022 hire date) effective April 2, 2022 were as follows:



NEO	RSUs (Number of Units) (#)(1)	RSU (Target Grant Value) ($)(2)	PSUs (Target Number of Units) (#)(1)	PSUs (Target Grant Value) ($)(2)

Ms. Tejada	311,029	10,000,000	311,029	10,000,000
Mr. Wilson	152,404	4,900,000	65,316	2,100,000
Mr. Justice	152,404	4,900,000	65,316	2,100,000
Ms. Webb	154,256	3,885,000	66,109	1,665,000

(1)The number of units subject to the RSU awards and the PSU awards was determined by dividing (i) the RSU award target grant value or the PSU award target grant value, as applicable, by (ii) the average of the closing price of our common stock on The New York Stock Exchange for the 30 trading days prior to the date of grant, rounded down to the nearest whole number of units. We use an average closing price to determine the number of shares, rather than the share price on the date of grant, to mitigate the impact of one-day or short-term stock price fluctuations. Each unit granted pursuant to these RSU awards and PSU awards represents a contingent right to receive one share of our common stock for each unit that is earned and/or vests.

(2)Target grant value represents the value used by the Compensation Committee to calculate the number of shares subject to each NEO’s equity awards at the target performance level. This target total value differs from the values reflected in the Summary Compensation Table for Fiscal Year 2023 for several reasons, including the manner in which we determine the number of units, as described in the footnote above. The values in the Summary Compensation Table for Fiscal Year 2023 represent the aggregate grant date fair value of each NEO’s equity awards calculated in accordance with ASC Topic 718 based on the single day closing price of our common stock on the date of grant and, for the PSU awards, assuming the probable outcome of the performance conditions.

RSU Awards – In the case of the RSU awards granted in April 2022 to our NEOs, 1/16th of the total number of units subject to the awards will vest on each quarterly anniversary of April 2, 2022, subject to such NEO’s Continuous Service (as defined in our 2019 Equity Plan through each applicable vesting date.

PSU Awards – In the case of the PSU awards granted in April 2022 to our NEOs, the units subject to the awards were to be earned, if at all, based upon our level of achievement of a pre-established, rigorous performance condition (that is, nnARR)


PagerDuty			45			2023 Proxy Statement

TABLE OF CONTENTS

and vest, if at all, based upon each NEO’s Continuous Service (as defined in the 2019 Equity Plan) through a three-year time-based vesting schedule as set forth hereafter, and subject to the terms of the 2019 Equity Plan.

DESIGN OF FISCAL 2023 PSU AWARDS

Performance Condition. A percentage of the target units set forth in each NEO’s PSU grant notice (the “Target PSUs”) ranging from 0% to 200% were to become eligible to vest on the certification date based on our level of achievement of the nnARR performance target (the “Performance Target”) over the period commencing February 1, 2022 and ending January 31, 2023 (the “Performance Period”) as calculated in the following table:


Net New Annual Recurring Revenue			Number of Eligible PSUs

80% of the Performance Target (“Threshold”)			50% of Target PSUs
100% of the Performance Target (“Target”)			100% of Target PSUs
110% of the Performance Target (“10% Stretch”)			150% of Target PSUs
115% of the Performance Target (“15% Stretch”)			175% of Target PSUs
120% of the Performance Target (“Maximum”)			200% of Target PSUs

If nnARR was between Threshold and Target, Target and 10% Stretch, 10% Stretch and 15% Stretch, or 15% Stretch and Maximum, then the resulting number of Eligible PSUs were to be linearly interpolated between such levels of nnARR as set forth in the table above.

The number of units actually eligible to vest as determined by the Compensation Committee on the certification date were the “Eligible PSUs.” Any units which did not become Eligible PSUs on the certification date were to immediately terminate and be forfeited.

We utilized a single nnARR performance period due to challenges in setting reliable longer-term performance targets in a dynamic and fast-moving industry environment in which we operate. Annual goal-setting supports the rigor of our program and enables us to set appropriate goals for each performance period to incentivize consistent year-over-year stretch performance levels that support our long-term growth objectives. To foster alignment with long-term interests of our stockholders, earned PSU shares, if any, are subject to a three-year time-based vesting requirement.

Time-Based Vesting Condition. Thirty-three percent of the aggregate number of Eligible PSUs were to vest on April 2, 2023, the first anniversary of the date of grant of the PSU award, and the remainder of the Eligible PSUs will vest in eight equal quarterly installments on each of January 2nd, April 2nd, July 2nd, and October 2nd, subject to the NEO’s Continuous Service as of the applicable vesting date.

Our fiscal 2023 PSU awards are also subject to potential acceleration, as further described in “Executive Compensation— Potential Payments Upon Termination or Change in Control.”


PagerDuty			46			2023 Proxy Statement

TABLE OF CONTENTS

RESULTS OF FISCAL 2023 PSU AWARDS

On March 8, 2023, the Compensation Committee determined that our nnARR for fiscal 2023 was attained at 79.3% of the Performance Target. As shown in the foregoing table, this resulted in 0% of the Target PSUs granted to our NEOs becoming Eligible PSUs, and as a result, all of the PSUs granted to our NEOs in fiscal 2023 were canceled in their entirety:


NEO	Target Number of PSUs (#)	Actual Payout Percentage (%)	Eligible PSUs (Actual Number of PSUs eligible to vest under time-based vesting condition) (#)

Ms. Tejada	311,029	—	—
Mr. Wilson	65,316	—	—
Mr. Justice	65,316	—	—
Ms. Webb	66,109	—	—

Disclosure of the target and actual nnARR amount would cause us meaningful competitive harm, but we have provided the percentage of the Performance Target attained as a meaningful key metric that conveys the key nature of the goal set and our achievements against it. These aggressive Performance Target ranges were set with a view to sustainable growth beyond delivering revenue only for fiscal 2023, and hence would require significant effort to achieve. It should be noted that the targets for this PSU award were even more aggressive than those for the annual cash bonus program.

EQUITY AWARD FOR MS. WEBB

As previously described above, in connection with her appointment in April 2022 as our Senior Vice President, Legal and General Counsel, on July 2, 2022 the Compensation Committee granted Ms. Webb an RSU award with a target grant value of $3,885,000 for 154,256 units and a PSU award with a target grant value of $1,665,000 for 66,109 units, both under our 2019 Equity Plan, which were to vest upon the same terms as the RSU and PSU awards granted to our other NEOs in fiscal 2023.

The equity awards granted to our NEOs during fiscal 2023 are set forth in the “Summary Compensation Table for Fiscal Year 2023” and the “Grants of Plan-Based Awards” table below under the heading “Executive Compensation.”

Welfare and Health Benefits

We maintain a tax-qualified defined contribution retirement plan under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), that provides eligible U.S. employees, including our NEOs, with an opportunity to save for retirement on a tax advantaged basis. Eligible employees may defer eligible compensation on a pre-tax and/or post-tax basis, up to the statutory annual limits on contributions under the Code. Employee contributions are allocated to each participant’s individual account and are then invested in selected investment alternatives according to the participant’s directions. Participants are immediately and fully vested in their contributions.

Our Section 401(k) plan provides for discretionary matching of employee contributions. For fiscal 2023, we made employer matching contributions of up to two percent of each participant’s employee contributions of up to two percent of eligible wages during the period as defined in the Section 401(k) Plan.

Additional benefits offered to all employees, including our NEOs, include medical, dental and vision insurance, business travel insurance, an employee assistance program, a mental health benefit, health and dependent care flexible spending accounts, basic life insurance, accidental death and dismemberment insurance, short-term and long-term disability insurance, commuter benefits and a monthly electronics allowance. During 2023, we also offered specific home office related reimbursements to our newly hired employees, including Ms. Webb.

We design our employee benefits programs to be cost effective, scalable, and competitive in relation to the market as well as compliant with applicable laws and practices. We adjust our employee benefits programs as needed based upon regular monitoring of applicable laws and practices and the competitive market.


PagerDuty			47			2023 Proxy Statement

TABLE OF CONTENTS

Perquisites and Other Personal Benefits

In general, we do not provide significant perquisites or other personal benefits to our NEOs except as generally made available to our employees, or in special circumstances where the Compensation Committee believes it is appropriate to assist an individual in the performance of his or her duties, to make him or her more efficient and effective, and for recruitment and retention purposes. PagerDuty offers the NEOs certain health and life insurance, as well as payment of certain transportation costs, and corporate travel fee costs when the Compensation Committee determines that such arrangements are appropriate and consistent with the Company’s business objectives.

In the future, we may provide perquisites or other personal benefits in limited circumstances, such as those described in the preceding paragraph. All future practices with respect to perquisites or other personal benefits will be approved and subject to periodic review by the Compensation Committee.

Employment Arrangements

We have entered into a written amended and restated employment offer letter with Ms. Tejada (the “Tejada Letter”) and into either a confirmatory employment agreement or employment offer letter with each of our other NEOs. Each of these arrangements was approved on our behalf by the Compensation Committee or our Board at the recommendation of the Compensation Committee. We believe that these arrangements were necessary to induce these individuals to forgo other employment opportunities or leave their then-current employer for the uncertainty of a demanding position in a new and unfamiliar organization.

In filling each of our executive positions, our Board or the Compensation Committee, as applicable, recognized that it would need to develop competitive compensation packages to attract qualified candidates in a dynamic labor market. At the same time, our Board and the Compensation Committee were sensitive to the need to integrate new executive officers into the executive compensation structure that we were seeking to develop, balancing both competitive and internal equity considerations.

Each of our employment arrangements provides for “at will” employment and sets forth the initial compensation arrangements for the NEO, including an initial base salary, a target annual bonus opportunity, eligibility to participate in our employee benefit programs, and severance payments and benefits upon a qualifying termination of employment. Further, each of our NEOs has executed a form of our standard proprietary information and inventions assignment agreement.

Under the terms of the Tejada Letter, Ms. Tejada is eligible to receive certain specified severance payments and benefits in connection with certain terminations of her employment, including in connection with a change in control of our Company. This post-employment compensation arrangement is discussed in “Executive Compensation – Potential Payments upon Termination or Change in Control.”

For detailed descriptions of the employment arrangements we maintained with our NEOs during fiscal 2023, see “Executive Compensation – Potential Payments upon Termination or Change in Control.”

SEVERANCE AND CHANGE IN CONTROL BENEFITS

Other than Ms. Tejada, each of our NEOs is eligible to participate as a Tier 2 participant in the Executive Severance and Change in Control Policy (the “Severance Policy”). The Severance Policy provides these individuals with severance benefits in the event of certain terminations, including an involuntary termination following a change in control of our Company.

These severance arrangements provide reasonable compensation to our NEOs if they leave our employ under certain circumstances to facilitate their transition to new employment. We also believe that these arrangements help maintain our NEOs’ continued focus and dedication to their assigned duties to maximize stockholder value if there is a potential transaction that could involve a change in control of our Company.

Under the Tejada Letter and with respect to the NEOs covered by the Severance Policy, all payments and benefits in the event of a change in control of our Company are payable only if there is a subsequent loss of employment by an executive officer (a so-called “double-trigger” arrangement) or in the case of equity acceleration, with respect to RSUs, upon a change in control if the acquiring company refuses to assume, continue, substitute for, or cancel for a specified per-share amount the outstanding awards. Our fiscal 2023 PSU awards are also subject to potential acceleration, as further described in “Executive Compensation – Potential Payments Upon Termination or Change in Control.”


PagerDuty			48			2023 Proxy Statement

TABLE OF CONTENTS

The Severance Policy will remain in effect until April 11, 2025, except that if on the date the Severance Policy is set to expire we have entered into an agreement that would cause a change in control to occur, then the Severance Policy will remain in effect until the consummation of the transaction constituting the change in control.

If any of the payments or benefits provided for under the Tejada Letter and the Severance Policy or otherwise payable to a NEO would constitute a “parachute payment” within the meaning of Section 280G of the Code and could be subject to the related excise tax, a NEO would receive either full payment of such payments and benefits or such lesser amount that would cause no portion of the payments and benefits being subject to the excise tax, whichever results in the greater after-tax benefits to our NEO. We do not use excise tax payments (or “gross-ups”) relating to a change in control of our Company and have no such obligations in place with respect to any of our executive officers, including our NEOs.

The receipt of severance payments and benefits upon a qualifying termination of employment under the Tejada Letter and the Severance Policy is contingent upon each NEO signing and not revoking a general release of claims, our NEOs must sign and not revoke a general release of claims in our favor. In addition, under the Tejada Letter, in order for Ms. Tejada to receive severance payments and benefits for which she is eligible, she must resign from our Board and return all of our property in her possession.

We believe that having in place reasonable and competitive post-employment compensation arrangements in the event of a change in control of our Company is essential to attracting and retaining highly qualified executive officers. The Compensation Committee does not consider the specific amounts payable under the post-employment compensation arrangements when determining the annual compensation for our NEOs. We do believe, however, that these arrangements are necessary to offer compensation packages that are competitive.

For a summary of the material terms and conditions of the post-employment compensation arrangements we maintained with our NEOs during fiscal 2023, as well as an estimate of the potential payments and benefits that they would have been eligible to receive if a hypothetical change in control or other trigger event had occurred on January 31, 2023 and, with respect to Ms. Giamalis, the payments made to her as a result of her termination in fiscal 2023, see “Executive Compensation - Employment Agreements with our Named Executive Officers” and “Executive Compensations – Potential Payments Upon Termination or Change in Control.”


PagerDuty			49			2023 Proxy Statement

TABLE OF CONTENTS

Other Compensation Policies

COMPENSATION RECOVERY POLICY

Currently, we have not implemented a policy regarding retroactive adjustments to any cash or equity-based incentive compensation paid to our executive officers and other employees where the payments were predicated upon the achievement of financial results that were subsequently the subject of a financial restatement. We intend to adopt a general compensation recovery (“clawback”) policy covering our annual and long-term incentive award plans and arrangements that is compliant with the Dodd-Frank Wall Street Reform and Consumer Protection Act in a timely manner following finalization of the NYSE listing standards relating to the recovery of erroneously awarded compensation.

As a public company, if we are required to restate our financial results due to our material noncompliance with any financial reporting requirements under the federal securities laws as a result of misconduct, the CEO and CFO may be legally required to reimburse our Company for any bonus or other incentive-based or equity-based compensation they receive in accordance with the provisions of section 304 of the Sarbanes-Oxley Act of 2002.

HEDGING AND PLEDGING PROHIBITIONS

Our Insider Trading Policy prohibits our employees (including our NEOs) and the non-employee members of our Board from engaging in derivative securities or hedging transactions. This prohibition extends to publicly traded options, such as puts and calls, and other derivative securities with respect to our securities (other than stock options and other compensatory equity awards issued to our employees (including our officers) and the non-employee members of our Board by our Company). This includes any hedging or similar transaction designed to decrease the risks associated with holding our common stock.

Similarly, our Insider Trading Policy prohibits our employees (including our officers) and the non-employee members of our Board from using our securities as collateral for loans, pledging our securities as collateral for loans, or holding our common stock in a margin account.

COMPENSATION RISK ASSESSMENT

The Compensation Committee has reviewed our compensation policies and practices, in consultation with Compensia, to assess whether they encourage employees to take inappropriate risks. After conducting this review of compensation-related risk, the Compensation Committee has concluded that our compensation policies and practices are not reasonably likely to have a material adverse effect on our Company.

EQUITY GRANT TIMING PRACTICES

We generally grant equity awards on fixed dates determined in advance, although there may be occasions when grants are made on other dates, such as new hires or other special circumstances. The timing of equity award grants to our executive officers is not coordinated in a manner that intentionally benefits our executive officers. The Compensation Committee approves all equity award grants to our NEOs on or before the grant date. The Compensation Committee’s general practice is to complete its annual executive compensation review and determine performance goals and target compensation for our NEOs, and then equity awards are granted to NEOs and become effective. This process is further described above under the section titled Compensation-Setting Process. Accordingly, annual equity awards are typically granted to our NEOs in April of each fiscal year. On a limited occasion, the Compensation Committee may grant equity awards outside of our annual grant cycle for new hires, promotions, recognition, retention or other purposes. While the Compensation Committee has discretionary authority to approve equity awards to our NEOs outside of the cycle described above, the committee does not have a practice or policy of granting equity awards in anticipation of the release of material nonpublic information and we do not, in any event, time the release of material non-public information in coordination with grants of equity awards in a manner that intentionally benefits our NEOs.


PagerDuty			50			2023 Proxy Statement

TABLE OF CONTENTS

Tax and Accounting Considerations

We take the applicable tax and accounting requirements into consideration in designing and operating our executive compensation program.

DEDUCTIBILITY OF EXECUTIVE COMPENSATION

Under Section 162(m) of the Code (“Section 162(m)”), compensation paid to each of our “covered employees” that exceeds $1 million per taxable year is generally non-deductible unless the compensation qualifies for (i) certain grandfathered exceptions (including the “performance-based compensation” exception) for certain compensation paid pursuant to a written binding contract in effect on November 2, 2017 and not materially modified on or after such date or (ii) the reliance period exception for certain compensation paid by corporations that became publicly held on or before December 20, 2019. For purposes of Section 162(m), a “covered employee” includes our chief executive officer, chief financial officer, any other executive officer whose total compensation is required to be reported to stockholders under the Exchange Act by reason of such individual being among the three highest compensated executive officers for the tax year, and any executive officer who was subject to the deduction limit in any tax year beginning after December 31, 2016.

Although the Compensation Committee will continue to consider tax implications as one factor in determining executive compensation, the Compensation Committee also looks at other factors in making its decisions and retains the flexibility to provide compensation for our NEOs in a manner consistent with the goals of our executive compensation program and the best interests of our Company and its stockholders, which may include providing for compensation that is not deductible by us due to the deduction limit under Section 162(m). The Compensation Committee also retains the flexibility to modify compensation that was initially intended to be exempt from the deduction limit under Section 162(m) if it determines that such modifications are consistent with our business needs.

ACCOUNTING FOR STOCK-BASED COMPENSATION

The Compensation Committee takes accounting considerations into account in designing compensation plans and arrangements for our executive officers and other employees. Chief among these is ASC Topic 718, the standard which governs the accounting treatment of certain stock-based compensation. Among other things, ASC Topic 718 requires us to record a compensation expense in our income statement for all equity awards granted to our executive officers and other employees. This compensation expense is based on the grant date “fair value” of the equity award and will be recognized ratably over the award’s requisite service period (which, generally, will correspond to the award’s vesting schedule), with the exception of PSUs which are recognized using the accelerated attribution method. The Company accounts for forfeitures as they occur. This compensation expense is also reported in the compensation tables below, even though recipients may never realize any value from their equity awards.


PagerDuty			51			2023 Proxy Statement

TABLE OF CONTENTS

Compensation Committee Report*

The Compensation Committee has reviewed and discussed with management the Compensation Discussion and Analysis (the “CD&A”) contained in this Proxy Statement. Based on this review and discussion, the Compensation Committee has recommended to our Board that the CD&A be included in this Proxy Statement and incorporated into our Annual Report on Form 10-K for the fiscal year ended January 31, 2023.

Compensation Committee

Zachary Nelson (Chair)

Sameer Dholakia

Rathi Murthy

*The material in this report is not “soliciting material,” is furnished to, but not deemed “filed” with, the Commission and is not deemed to be incorporated by reference in any of our filings under the Securities Act or the Exchange Act, other than our Annual Report on Form 10 K, where it shall be deemed to be “furnished,” whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.”


PagerDuty			52			2023 Proxy Statement

TABLE OF CONTENTS

Executive Compensation

Summary Compensation Table for Fiscal Year 2023

The following table presents all of the compensation awarded to or earned by or paid to our NEOs for the fiscal years ended January 31, 2023, 2022 and 2021.



Name	Fiscal Year	Salary ($)	Bonus ($)(1)	Options Awards ($)(2)	Stock Awards ($)(2)	Non-Equity Incentive Plan Compensation ($)(3)	All Other Compensation ($)(4)	Total ($)

Jennifer Tejada Chief Executive Officer	2023	586,667	—	—	21,286,825	828,941	14,864	22,717,297
	2022	508,333	—	—	11,867,582	884,730	7,923	13,268,568
	2021	450,000	—	—	5,646,686	588,150	2,058	6,686,894
Howard Wilson Chief Financial Officer	2023	450,735	—	—	7,450,378	445,660	15,698	8,362,471.3
	2022	420,833	—	—	5,480,722	512,507	5,032	6,419,094
	2021	400,000	—	—	2,971,938	365,960	5,891	3,743,789
Shelley Webb(5) Senior Vice President, Legal, General Counsel, and Secretary	2023	308,333	—	—	5,603,882	240,001	7,569	6,159,785.51
David Justice(6) Executive Vice President, Chief Revenue Officer	2023	441,667	—	—	7,450,378	532,467	8,125	8,432,636.95
	2022	391,667	—	—	5,975,214	550,737	4,384	6,922,002
	2021	350,000	58,333	—	984,703	289,667	4,878	1,687,581
Stacey Giamalis(7) Former Senior Vice President, Legal, General Counsel, and Secretary	2023	91,958	—	—	—	—	228,267	320,224.99
	2022	337,363	—	—	1,906,883	234,749	3,117	2,482,112
	2021	326,480	—	—	1,238,308	169,100	4,339	1,738,227

(1)The amounts reported for Mr. Justice reflect a portion of the non-recoverable draw against commissions for the fiscal years ended January 31, 2021 pursuant to the terms of his offer letter.

(2)The amounts reported represent the aggregate grant date fair value of the option awards, RSU awards, and PSU awards, as applicable, granted to the NEO in the fiscal years ended January 31, 2023, 2022 and 2021, calculated in accordance with ASC Topic 718. Such aggregate grant date fair value does not take into account any estimated forfeitures related to service-vesting conditions. The assumptions used in calculating the grant date fair value of the option awards and stock awards reported in this column are set forth in Note 12 to our audited financial statements included in our Annual Report. With respect to PSUs granted in fiscal 2023, the grant date fair value in the table above is calculated assuming probable outcome of the applicable performance condition, measured as of the grant date in accordance with ASC Topic 718. The grant date fair value of the PSUs, assuming achievement of the maximum level of performance under the applicable performance conditions is $21,286,825 for Ms. Tejada, $4,470,227 for each of Mr. Wilson and Mr. Justice, and $3,362,304 for Ms. Webb. The amounts reported in this column reflect the accounting cost for these option awards and stock awards, and do not correspond to the actual economic value that may be received by the NEOs upon vesting of the awards.

(3)The amounts reported represent the NEO’s total cash incentive bonuses earned for the fiscal year ended January 31, 2023, 2022 and 2021, as described above under “Compensation Elements—Target Bonus Amounts,” and paid in fiscal 2024, 2023, and 2022, respectively.


PagerDuty			53			2023 Proxy Statement

TABLE OF CONTENTS

(4)The amounts reported include (i) driver services for Ms. Tejada, (ii) matching 401(k) contributions for each of Mr. Wilson, Ms. Webb, Mr. Justice, and Ms. Giamalis, (iii) recognition awards for each of Ms. Tejada (with associated tax gross-up of $546), Mr. Wilson (with associated tax gross-up of $546), Mr. Justice (with associated tax gross-up of $692), and Ms. Giamalis (with associated tax gross-up of $546), (iv) company parking for each of Ms. Tejada, Mr. Wilson, Ms. Webb, Mr. Justice, and Ms. Giamalis, and (v) amounts paid to Mr. Justice as reimbursement for personal items stolen during a company event (with associated tax gross-up $854). For Ms. Giamalis, the amounts reported also includes a lump-sum payment ($169,770), accrued vacation paid out ($39,178), and COBRA premiums ($13,488).

(5)Ms. Webb was appointed as our Senior Vice President, Legal and General Counsel, effective April 25, 2022, and Senior Vice President, Legal and General Counsel and Secretary, effective May 26, 2022.

(6)Mr. Justice ceased serving as our Chief Revenue Officer effective February 3, 2023.

(7)Ms. Giamalis ceased serving as Senior Vice President, Legal, General Counsel and Secretary on April 25, 2022, and continued to provide services during a transition period until May 6, 2022.

Grants of Plan-Based Awards

The following table shows, for the fiscal year ended January 31, 2023, certain information regarding grants of plan-based awards to our NEOs:


		Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1)			Estimated Future Payouts Under Equity Incentive Plan Awards (2)


Name	Grant Date	Threshold ($)	Target ($)	Maximum ($)	Threshold (#)	Target (#)	Maximum (#)	All Other Stock Awards: Number of Shares of Stock or Units (#)	Grant Date Fair Value of Stock and Option Awards ($)(3)

Jennifer Tejada	—	293,534	587,069	1,174,137
	4/2/2022				155,514	311,029	622,058	311,029(4)	21,286,825
Howard Wilson	—	157,812	315,623	631,246
	4/2/2022				32,658	65,316	130,632	152,404(4)	7,450,378
Shelley Webb(5)	—	84,986	169,973	339,945
	7/2/2022				33,055	66,109	132,218	154,256(6)	5,603,882
David Justice	—	—	450,000	—
	4/2/2022				32,658	65,316	130,632	152,404(4)	7,450,378
Stacey Giamalis(7)		—	—	—

(1)These amounts reflect the threshold, target, and maximum non-equity incentive cash bonus amounts for performance for the fiscal year ended January 31, 2023 for each of our NEOs, except for Mr. Justice, pursuant to the Fiscal 2023 Bonus Plan. For Mr. Justice, these amounts reflect the target non-equity incentive cash bonus amount for performance for fiscal year ended January 31, 2023, pursuant to the Sales Plan. The Sales Plan does not specify overall threshold or maximum amounts. These amounts do not necessarily correspond to the actual amounts that were received by our NEOs. Target bonuses were set as a percentage of each NEO's base salary for the fiscal year ended January 31, 2023, and were 100% for Ms. Tejada, 70% for Mr. Wilson, 55% for Ms. Webb, 100% for Mr. Justice, and 40% for Ms. Giamalis, as further described in “Compensation Discussion and Analysis” above.

(2)Amounts in the “Estimated Future Payouts Under Equity Incentive Plan Awards” represent the fiscal 2023 PSUs that were granted on April 2, 2022 and July 2, 2022, and are eligible to vest based on the achievement of nnARR performance target during the one year performance period. The amounts shown in the Threshold column reflect the PSUs earned if the minimum corporate performance metric is met and is 50% of the amounts shown under the Target column. The amounts shown in the Target column reflect the PSUs earned if the corporate performance metric is at target. The amounts shown in the Maximum column reflect the PSUs earned if the


PagerDuty			54			2023 Proxy Statement

TABLE OF CONTENTS

maximum corporate performance metric is met and is 200% of the amounts shown under the Target column. In addition, the PSUs vest over three years, subject to continuous service.

(3)Amounts shown represent the aggregate grant date fair value of the equity awards, which includes RSUs and target PSUs, granted to our NEOs, computed in accordance with ASC Topic 718. Pursuant to SEC rules, the amounts shown exclude the impact of estimated forfeitures related to service-based vesting conditions. The assumptions used in the calculation of these amounts are described in Note 12 to our audited financial statements included in our Annual Report. The grant date fair value of the PSUs in the table above is calculated assuming probable outcome of the applicable performance condition, measured as of the grant date in accordance with ASC Topic 718. These amounts may not correspond to the actual value that may be recognized by our NEOs. Material terms of plan-based awards, including criteria used in determining amounts payable and vesting of awards, are further discussed in “Compensation Discussion and Analysis” above.

(4)The amounts represent RSU awards that vest ratably every quarter over four years with the first vest occurring on July 2, 2022, subject to continuous service.

(5)The amounts for Ms. Webb reflect the pro-rated amounts for threshold, target, and maximum non-equity incentive cash bonus amounts for performance for the fiscal year ended January 31, 2023 for the period of time in which Ms. Webb was eligible to participate in the non-equity incentive cash bonus plan.

(6)The amounts represent RSU awards that vest ratably every quarter over four years with the first vest occurring on October 2, 2022, subject to continuous service.

(7)Ms. Giamalis ceased serving as Senior Vice President, Legal, General Counsel and Secretary on April 25, 2022, and was not eligible to receive any amounts under the non-equity incentive cash bonus plan at the end of fiscal 2023 nor did she receive any equity awards for fiscal 2023.


PagerDuty			55			2023 Proxy Statement

TABLE OF CONTENTS

Outstanding Equity Awards as of January 31, 2023

The following table presents the outstanding equity incentive plan awards held by each of our NEOs as of January 31, 2023.


	Option Awards(1)					Stock Awards(1)

Name	Grant Date	Number of Securities Underlying Unexercised Options Exercisable (#)	Number of Securities Underlying Unexercised Options Unexercisable (#)	Option Exercise Price ($)	Option Expiration Date	Number of Shares or Units of Stock That Have Not Vested (#)	Market Value of Shares or Units of Stock That Have Not Vested ($)(2)	Equity Incentive Plan Awards: Number of Unearned Shares or Units That Have Not Vested (#)	Equity Incentive Plan Awards: Market Value of Unearned Shares or Units That Have Not Vested ($)(2)

Jennifer Tejada Chief Executive Officer	4/2/2022					252,712(3)	7,528,290	311,029(4)	9,265,554
	4/2/2021					135,121(3)	4,025,255	25,861(4)	770,399
	4/2/2020	—	—	—	—	111,051(3)	3,308,209
	3/8/2019(5)	814,000	—	14.52	3/7/2029	—	—
	7/10/2018(6)	713,084	—	7.43	7/9/2028	—	—
	7/22/2016(7)	1,280,234	—	2.00	7/21/2026	—	—
Howard Wilson Chief Financial Officer	4/2/2022					123,829(3)	3,688,866	65,316(4)	1,945,764
	10/2/2021(8)					31,781	946,756
	4/2/2021					40,536(3)	1,207,567	7,755(4)	231,021
	4/2/2020	—	—	—	—	58,448(3)	1,741,166
	3/8/2019(9)	220,000	—	14.52	3/7/2029	—	—
	7/10/2018(10)	202,000	—	7.43	7/9/2028	—	—
	12/30/2016(11)	44,164	—	2.00	12/29/2026	—	—
Shelley Webb Senior Vice President, Legal, General Counsel, and Secretary	7/2/2022					134,974(3)	4,020,875	66,109(4)	1,969,387
David Justice Executive Vice President, Chief Revenue Officer	4/2/2022					123,829(3)	3,688,866	65,316(4)	1,945,764
	10/2/2021(8)					31,781	946,756
	4/2/2021					47,293(3)	1,408,858	7,755(4)	231,021
	4/2/2020(12)	—	—	—	—	19,366	576,913
	1/2/2020(13)	31,872	10,624	24.34	1/1/2030	53,570	1,595,850
Stacey Giamalis(14) Former Senior Vice President, Legal, General Counsel, and Secretary	—	—	—	—	—	—	—	—	—


PagerDuty			56			2023 Proxy Statement

TABLE OF CONTENTS

(1)All option and stock awards listed in this table were granted pursuant to the 2010 Stock Plan or the 2019 Equity Plan and are subject to acceleration of vesting as described in “—Employment Agreements with our NEOs ” or “—Potential Payments upon Termination or Change in Control” below.

(2)This column represents the market value of the shares of our common stock underlying the stock awards as of January 31, 2023, based on the closing price of our common stock, as reported on the NYSE, of $29.79 per share on January 31, 2023.

(3)The shares underlying the stock award shall vest in 1/16 quarterly installments, commencing three months after the grant date, subject to continuous service through each such date.

(4)Each PSU granted represents a contingent right to receive one share of our common stock for each unit that is earned. The units subject to the PSU award vests, if at all, based upon both (i) a pre-established, rigorous performance condition (that is based on nnARR) and (ii) each NEO’s Continuous Service (as defined in the 2019 Equity Plan) through the following time-based vesting schedule: Thirty-three percent of the aggregate number of Eligible PSUs vest on the first anniversary of the date of grant of the PSU award (the “First Vest Date”), and the remainder of the Eligible PSUs will vest in eight equal quarterly installments on each of July 2nd, October 2nd, January 2nd, and April 2nd (the “Quarterly Vest Dates”), subject to the NEO’s Continuous Service as of the First Vest Date and each subsequent vesting date. For PSU awards granted on April 2, 2021, amounts reflect Eligible PSUs earned that have not vested. For PSU awards granted on April 2, 2022, such PSUs were forfeited in their entirety due to the achieved performance result that fell below the threshold performance level.

(5)All shares subject to the stock option first became exercisable on the grant date, subject to our right to repurchase unvested shares in the event Ms. Tejada’s employment terminates. The option vests as follows: (a) for 407,000 shares of 814,000 shares, 25% of the shares subject to option (a) shall vest on March 8, 2020 and 1/48th per month thereafter and (b) for 407,000 shares of 814,000 shares, 25% of the shares subject to option (b) shall vest on March 8, 2021 and 1/48th per month thereafter, subject to her continuous service through each such date. Out of the unexercised options exercisable, 678,334 shares subject to the options were vested as of January 31, 2023.

(6)A portion of the option covering 26,916 shares is intended to qualify as an incentive stock option for federal tax purposes, and the remaining option to purchase 713,084 shares is a nonstatutory stock option. The option becomes exercisable as follows: (a) 13,458 shares subject to the incentive stock option first become exercisable on January 1 in each of 2021 and 2022; and (b) all of the 713,084 shares subject to the nonstatutory stock option first become exercisable on the grant date, subject to our right to repurchase unvested shares in the event Ms. Tejada’s employment terminates. 12/48th of the total shares subject to the option vests on the 12-month anniversary of the vesting commencement date of July 10, 2018 and 1/48th of the total shares subject to the option vests on the same day of each month thereafter, subject to her continuous service to us through each such date. The option is fully vested as of January 31, 2023.

(7)A portion of the option covering 250,000 shares is intended to qualify as an incentive stock option for federal tax purposes, and the remaining option to purchase 3,638,426 shares is a nonstatutory stock option. The option becomes exercisable as follows: (a) 50,000 shares subject to the incentive stock option first become exercisable on the grant date and an additional 50,000 shares subject to the incentive stock option first become exercisable on January 1 in each of 2017, 2018, 2019, and 2020; and (b) all of the 3,638,426 shares subject to the nonstatutory stock option first become exercisable on the grant date, subject to our right to repurchase unvested shares in the event Ms. Tejada’s employment terminates. 12/48th of the total shares subject to the option vests on the 12-month anniversary of the vesting commencement date of July 22, 2016 and 1/48th of the total shares subject to the option vests on the same day of each month thereafter, subject to her continuous service to us through each such date. The option is fully vested as of January 31, 2023.

(8)The amounts represent RSU awards that vest according to the following schedule: 30% of the shares vest on the first and second anniversaries of the grant date, and the remaining 40% of the shares vest on the third anniversary of the grant date subject to continuous service with us.

(9)All shares subject to the stock option first became exercisable on the grant date, subject to our right to repurchase unvested shares in the event Mr. Wilson’s employment terminates. The option vests as follows: (a) for 110,000 shares of 220,000 shares, 25% of the shares subject to option (a) vested on March 8, 2020 and 1/48th per month thereafter and (b) for 110,000 shares of 220,000 (6) shares, 25% of the shares subject to option (b) shall vest on March 8, 2021 and 1/48th per month thereafter subject to his continuous service through each such date. Out of the unexercised options exercisable, 183,334 shares subject to the options were vested as of January 31, 2023.

(10)A portion of the option covering 26,916 shares is intended to qualify as an incentive stock option for federal tax purposes, and the remaining portion of the option covering 203,084 shares is a nonstatutory stock option. The option becomes exercisable as follows: (a) 13,458 shares subject to the incentive stock option first become exercisable on January 1 in each of 2021 and 2022; and (b) all of the 203,084 shares subject to the nonstatutory stock option first become exercisable on the grant date, subject to our right to repurchase unvested shares in the event Mr. Wilson’s employment terminates. 12/48th of the total shares subject to the option vests on the 12-month anniversary of the vesting commencement date of July 10, 2018 and 1/48th of the total shares subject to the option vests on the same day of each month thereafter, subject to his continuous service to us through each such date. The option is fully vested as of January 31, 2023.

(11)A portion of the option covering 250,000 shares is intended to qualify as an incentive stock option for federal tax purposes, and the remaining portion of the option covering 372,148 shares is a nonstatutory stock option. The option becomes exercisable as follows: (a) 50,000 shares subject to the incentive stock option first become exercisable on the grant date and an additional 50,000 shares subject to the incentive stock option first become exercisable on January 1 in each of 2017, 2018, 2019, and 2020; and (b) all of the 372,148 shares subject to the nonstatutory stock option first become exercisable on the grant date, subject to our right to repurchase unvested shares in the event Mr. Wilson’s employment terminates. 12/48th of the total shares subject to the option vests on the 12-month anniversary of the vesting commencement date of December 23, 2016 and 1/48th of the total shares subject to the option vests on the same day of each month thereafter, subject to continuous service to us through each such date. The option is fully vested as of January 31, 2023.


PagerDuty			57			2023 Proxy Statement

TABLE OF CONTENTS

(12)The shares underlying the stock award shall vest as follows: 25% of the shares shall vest on April 2, 2021 and 1/16 quarterly thereafter, subject to Mr. Justice’s continuous service through each such date.

(13)The shares underlying the options shall vest and become exercisable and the shares underlying the stock award shall vest in accordance with the following schedule: 25% one year from the date of grant and the remaining shall vest in 1/16 quarterly installments thereafter, subject to Mr. Justice's continuous service through each such date.

(14)Because Ms. Giamalis ceased providing services to the Company, effective April 25, 2022, her equity awards ceased vesting as of her separation date and the period of time during which she permitted to exercise vested options ended August 4, 2022. All unexercised options held by Ms. Giamalis were forfeited.

Stock Option Exercises and Stock Vested

The following table shows for the fiscal year ended January 31, 2023, certain information regarding option exercises and stock vested during the last fiscal year with respect to our NEOs:


	Option Awards		Stock Awards


Name	Number of Shares Acquired on Exercise (#)	Value Realized on Exercise ($)(1)	Number of Shares Acquired on Vesting (#)	Value Realized on Vesting ($)(2)

Jennifer Tejada	604,378	16,546,287	243,418	6,623,124
Howard Wilson	230,000	6,036,300	117,829	3,127,599
Shelley Webb	—	—	19,282	478,483
David Justice	—	—	143,136	3,818,981
Stacey Giamalis	247,681	5,238,288	8,441	288,851

(1)The value realized on exercise represents the difference between the exercise price per share of the stock option and the market price of our common stock at the time of exercise. The value realized was determined without considering any taxes that may have been owed.

(2)The value realized upon vesting of restricted stock units is calculated by multiplying the number of shares vested by the closing price of our common stock on the vest date.

Employment Agreements with our Named Executive Officers

Below are descriptions of our employment agreements with our NEOs. The agreements generally provide for at-will employment and set forth the NEO’s initial base salary, target annual bonus opportunity, eligibility for employee benefits, and severance benefits upon a qualifying termination of employment. Furthermore, each of our NEOs has executed a form of our standard proprietary information and inventions assignment agreement. The key terms of the employment agreements with our NEOs are described below.

JENNIFER TEJADA

We entered into an amended and restated offer letter with Jennifer Tejada (“Tejada Amended and Restated Offer Letter”), our Chief Executive Officer, which was most recently amended in March 2021 and which sets forth the terms and conditions of her employment with us. The Tejada Amended and Restated Offer Letter has no specific term and provides for at-will employment. The Tejada Amended and Restated Offer Letter supersedes all existing agreements and understandings Ms. Tejada may have concerning her employment relationship with us. Ms. Tejada’s current annual base salary is $600,000 and her current target annual bonus opportunity is $600,000. Ms. Tejada is eligible to participate in benefit plans and arrangements made available to all of our full-time employees, subject to the terms of such plans.

The Tejada Amended and Restated Offer Letter reaffirms that, on July 22, 2016, Ms. Tejada was granted a time-based vesting option to purchase shares of our common stock, which represented the right to purchase 6.25% of our issued and outstanding securities on a fully diluted basis as of the grant date. Pursuant to the terms of the amended and restated offer letter, if Ms. Tejada’s equity awards subject to time-based vesting and granted prior to a change in control transaction (as defined in her amended and restated offer letter) are not assumed, substituted, continued or canceled for a per-share amount payable to holders of common stock, less any applicable per-share exercise price payable upon exercise of such equity


PagerDuty			58			2023 Proxy Statement

TABLE OF CONTENTS

award, in connection with the change in control transaction, 100% of the then-unvested shares subject to such equity awards will vest immediately prior to the change in control transaction, contingent upon such transaction.

Under the Tejada Amended and Restated Offer Letter, if Ms. Tejada’s employment is terminated other than for “cause,” she resigns for “good reason,” or her employment terminates due to her death or “disability” (such terms as defined in the Tejada Amended and Restated Offer Letter), in each case, during the period from three months before until 18 months following a “change in control transaction” (such period for the purposes of the Tejada Amended and Restated Offer Letter, the “change in control transaction period”), Ms. Tejada will be eligible to receive the following severance benefits (less applicable tax withholdings): (i) a lump sum cash amount equal to 18 months of her then-current annual base salary, plus an additional $12,000; (ii) 100% accelerated vesting and exercisability, as applicable, of all of her outstanding equity awards subject to time-based vesting and granted prior to a change in control transaction; (iii) a lump sum cash amount equal to a prorated amount of her target annual bonus opportunity; and (iv) payment or reimbursement of premiums to continue group health coverage under COBRA (as defined below) for 18 months.

Further, under the Tejada Amended and Restated Offer Letter, if Ms. Tejada’s employment is terminated other than for cause, she resigns for good reason, or her employment terminates due to her death or disability any time other than during the change in control transaction period, Ms. Tejada will be eligible to receive the following severance benefits (less applicable tax withholding): (i) a lump sum cash amount equal to 12 months of her then-current annual base salary, plus an additional $12,000; (ii) accelerated vesting and exercisability, as applicable, of each of her outstanding equity awards subject to time-based vesting with respect to a number of shares equal to 50% of the number of shares originally subject to the equity award; (iii) a lump sum cash amount equal to a prorated amount of her target annual bonus opportunity; and (iv) payment or reimbursement of the premiums to continue group health coverage under COBRA for 12 months.

To receive the severance benefits above upon a qualifying termination, Ms. Tejada must timely (i) resign from our Board, (ii) sign and not revoke a general release of claims in our favor, and (iii) return all of our property in her possession.

If any of the payments provided for under the Tejada Amended and Restated Offer Letter or otherwise payable to Ms. Tejada would constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code and would be subject to the related excise tax under Section 4999 of the Internal Revenue Code, then she will be entitled to receive either full payment of benefits or such lesser amount which would result in no portion of the benefits being subject to the excise tax, whichever results in the greater amount of after-tax benefits to her. The Tejada Amended and Restated Offer Letter does not require us to provide any tax gross-up payments to her.

HOWARD WILSON

We have entered into a confirmatory employment agreement with Howard Wilson, our Chief Financial Officer. The confirmatory employment agreement has no specific term and provides for at-will employment. Mr. Wilson’s current annual base salary is $455,882 and his current target annual bonus opportunity is $319,118. Mr. Wilson is eligible to participate in benefit plans and arrangements made available to all our full-time employees. Mr. Wilson also is eligible to receive severance benefits upon certain qualifying terminations of his employment, as more fully described below under “—Potential Payments upon Termination or Change in Control.”

DAVID JUSTICE

We entered into an offer letter with David Justice, our Executive Vice President, Chief Revenue Officer. The offer letter had no specific term and provides for at-will employment. Mr. Justice’s current annual base salary was $450,000 and his target sales commission opportunity was $450,000. Mr. Justice was eligible to participate in benefit plans and arrangements made available to all our full-time employees. On January 24, 2023, we announced that Mr. Justice gave notice to resign from his position as the Chief Revenue Officer, effective February 3, 2023.

SHELLEY WEBB

We have entered into an offer letter with Shelley Webb, our Senior Vice President, Legal, General Counsel, and Secretary. The offer letter has no specific term and provided for at-will employment. Ms. Webb’s annual base salary is $400,000, and her current target annual bonus opportunity is $220,000. Ms. Webb is eligible to participate in benefit plans and arrangements made available to all our full-time employees. Ms. Webb is also eligible to receive severance benefits upon certain qualifying terminations of her employment, as more fully described below under “—Potential Payments upon Termination or Change in Control.”


PagerDuty			59			2023 Proxy Statement

TABLE OF CONTENTS

STACEY GIAMALIS

We entered into a confirmatory employment agreement with Stacey Giamalis, our former Senior Vice President, Legal, General Counsel, and Secretary which was effective prior to her separation with us in 2022. The confirmatory employment agreement had no specific term and provided for at-will employment. Ms. Giamalis’s annual base salary was $339,539. Ms. Giamalis was eligible to participate in benefit plans and arrangements made available to all our full-time employees. On March 25, 2022, Ms. Giamalis provided notice of her intention to resign from the Company, following a transition period ended on May 6, 2022.

Potential Post-Employment Payments upon Termination or Change in Control

We maintain the Severance Policy for the benefit of Mr. Wilson, Ms. Webb, Mr. Justice (prior to the cessation of his services), Ms. Giamalis (prior to the cessation of her services) and certain other executives (other than Ms. Tejada) and key employees, which was most recently amended in March 2021. Under the Severance Policy, if we terminate the employment of Mr. Wilson, Ms. Webb, Mr. Justice (while he was employed and covered by the Severance Policy) or Ms. Giamalis (while she was employed and covered by the Severance Policy) (each a “Covered Employee) ”other than for “cause,” or a Covered Employee resigns for “good reason” (such terms as defined in the Severance Policy), in each case, during the period from three months before until 12 months following a “change in control” (as defined in the Severance Policy and such period for the purposes of the Severance Policy, the “change in control period”), such Covered Employee will be eligible to receive the following severance benefits (less applicable tax withholdings): (i) a lump sum cash amount equal to 12 months of then-current annual base salary; (ii) a lump sum cash amount equal to a prorated amount of target annual bonus opportunity; (iii) continuation of health plan benefits at no cost under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, or COBRA, for up to 12 months, and (iv) 100% of then outstanding and unvested equity awards that are subject to time-based vesting will fully vest and, as applicable, be exercisable.

Further, under the Severance Policy, if a Covered Employee is terminated other than for cause any time other than during the change in control period, he or she will be eligible to receive the following severance benefits (less applicable tax withholding): (i) a lump sum cash amount equal to six months of then-current annual base salary and (ii) continuation of health plan benefits at no cost under COBRA for up to six months.

In addition, if equity awards held by a Covered Employee that are subject to time-based vesting and granted prior to a change in control are not assumed, substituted, continued or canceled for a per-share amount payable to holders of common stock, less any applicable per-share exercise price payable upon exercise of such equity award, in connection with the change in control, 100% of the then-unvested shares subject to such equity awards will vest immediately prior to the change in control, contingent upon such transaction.

To receive the severance benefits above upon a qualifying termination, the Covered Employee must sign and not revoke a general release of claims in our favor by the deadline set forth in the Severance Policy.

If any of the payments provided for under the Severance Policy or otherwise payable to such Covered Employee would constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code and would be subject to the related excise tax under Section 4999 of the Internal Revenue Code, then he or she will be entitled to receive either full payment of benefits or such lesser amount which would result in no portion of the benefits being subject to the excise tax, whichever results in the greater amount of after-tax benefits to him. The Severance Policy does not require us to provide any tax gross-up payments to any Covered Employee or any other participant.

The Severance Policy will remain in effect until April 11, 2025, except if on the date the Severance Policy is set to expire we have entered into an agreement that would cause a change in control to occur, then the Severance Policy will remain in effect until the consummation of the transaction constituting a change in control.

Ms. Tejada is not eligible to participate in the Severance Policy and is only eligible to receive potential termination or change in control payments pursuant to her amended and restated employment agreement, as described in “—Employment Agreements with our NEOs—Jennifer Tejada.”

In addition, all options and RSUs granted under our 2019 Equity Plan and our 2010 Stock Plan provide that they will fully accelerate in the event of the holder’s termination due to death.


PagerDuty			60			2023 Proxy Statement

TABLE OF CONTENTS

Pursuant to the terms of our fiscal 2023 PSU awards, in the event of the holder’s termination due to death, the Eligible PSUs will fully accelerate. In the event of a change in control during the performance period, the target number of PSUs will become Eligible PSUs. If a change in control occurs when there are any Eligible PSUs (including any PSUs that became Eligible PSUs as a result of the change in control), such Eligible PSUs will continue to vest in accordance with the time-based schedule, subject to potential acceleration pursuant to the Severance Policy terms or, with respect to Ms. Tejada, pursuant to her amended and restated employment agreement terms, applicable to time-based vesting awards. In addition, upon Ms. Tejada’s involuntary termination (as defined in her amended and restated employment agreement) excluding death, the Eligible PSUs then-outstanding will be eligible for the vesting acceleration that applies to time-based vesting awards under her employment agreement.

The following table summarizes the estimated payments and benefits that would be provided to our NEOs upon termination or a change in control, assuming the triggering event took place on January 31, 2023, except for Ms. Giamalis, for whom the table reports what she received in connection with her departure from the Company on May 6, 2022. Mr. Justice’s estimated payments and benefits that would have been provided to Mr. Justice in the event of a termination or change in control took place on January 31, 2023 are provided below because he was still employed at the Company as of that date, and departed the Company on February 3, 2023. Amounts actually received if any of the NEOs (except Ms. Giamalis) cease to be employed will vary based on factors such as the timing during the year of any such event, the Company’s stock price, the listed officer’s age, performance under the terms of applicable PSUs, and any changes to our benefit arrangements and policies.


PagerDuty			61			2023 Proxy Statement

TABLE OF CONTENTS


NEO	Involuntary Termination of Employment Without Cause Not in Change in Control Period ($)(1)(2)	Involuntary Termination of Employment Due to Death Not in Change in Control Period ($)(12)	Involuntary Termination of Employment Without Cause or Voluntary Resignation for Good Reason Within Change in Control Period ($)(2)	Involuntary Termination of Employment Due to Death Within Change in Control Period ($)(13)	Change in Control Where Awards Are Not Assumed and Executive Remains in Service ($)(11)

Jennifer Tejada
Severance Payment(3)	1,212,000	1,212,000	1,812,000	1,812,000	—
Value of Benefits(4)	36,038	36,038	54,057	54,057	—
Equity Acceleration(5)(6)	8,851,887	17,703,773	17,703,773	17,703,773	17,703,773
Total	10,099,925	18,951,811	19,569,830	19,569,830	17,703,773
Howard Wilson
Severance Payment(7)	227,941	—	775,000	—	—
Value of Benefits(4)	14,097	—	28,193	—	—
Equity Acceleration(5)(8)	—	8,375,267	8,375,267	8,375,267	8,375,267
Total	242,038	8,375,267	9,178,460	8,375,267	8,375,267
Shelley Webb
Severance Payment(9)	200,000	—	620,000	—	—
Value of Benefits(4)	9,242	—	18,484	—	—
Equity Acceleration(5)(8)	—	4,020,875	4,020,875	4,020,875	4,020,875
Total	209,242	4,020,875	4,659,359	4,020,875	4,020,875
David Justice
Severance Payment(10)	225,000	—	900,000	—	—
Value of Benefits(4)	18,019	—	36,038	—	—
Equity Acceleration(5)(8)	—	8,506,166	8,506,166	8,506,166	8,506,166
Total	243,019	8,506,166	9,442,204	8,506,166	8,506,166
Stacey Giamalis(14)
Severance Payment	169,770	—	—	—	—
Value of Benefits	13,488	—	—	—	—
Equity Acceleration	—	—	—	—	—
Total	183,258	—	—	—	—

(1)Includes, for Ms. Tejada, a resignation for good reason or involuntary termination due to disability.

(2)Includes, for Ms. Tejada, an involuntary termination due to disability. The Change in Control Period is defined as the period commencing three months prior to and ending 12 months (or, with respect to Ms. Tejada, 18 months) following a change in control.

(3)$1.2 million represents 12 months of the NEO's annual base salary in effect on January 31, 2023, plus 100% of the NEO's target annual bonus for fiscal year 2023, plus an additional $12,000. $1.8 million represents 18 months of the NEO's annual base salary in effect on January 31, 2023, plus 100% of the NEO's target annual bonus for fiscal year 2023, plus an additional $12,000

(4)The amounts in this row reflect the estimated value of future premiums under our health and welfare benefit plans.


PagerDuty			62			2023 Proxy Statement

TABLE OF CONTENTS

(5)The amounts in this row reflect the value of accelerated vesting of stock options, RSUs, and PSUs. The value of accelerated vesting of stock options was calculated by multiplying the number of shares subject to accelerated vesting under outstanding stock options by the difference between $29.79, which was the closing market price per share of our common stock on January 31, 2023 (the last trading date before the end of our fiscal year), and the per share exercise price of the applicable accelerated stock option. The value of accelerated vesting of RSUs, and PSUs was calculated by multiplying the number of shares subject to accelerated vesting under RSU and PSU grants by $29.79, which was the closing market price per share of our common stock on January 31, 2023 (the last trading date before the end of our fiscal year). For PSUs, the performance conditions have been deemed satisfied based on actual achievement.

(6)$8.9 million represents the accelerated vesting of 50% of the NEO’s unvested stock options, RSUs and PSUs as of January 31, 2023.$17.7 million represents the accelerated vesting of 100% of the NEO’s unvested stock options, RSUs, and PSUs as of January 31, 2023.

(7)$227,941 represents six months of the NEO's annual base salary in effect on January 31, 2023. $775,000 represents 12 months of the NEO's annual base salary in effect on January 31, 2023, plus 100% of the NEO's target annual bonus for fiscal year 2023.

(8)Represents the accelerated vesting of 100% of the NEO’s unvested stock options, RSUs and PSUs as of January 31, 2023.

(9)$200,000 represents six months of the NEO's annual base salary in effect on January 31, 2023. $620,000 represents 12 months of the NEO's annual base salary in effect on January 31, 2023, plus 100% of the NEO's target annual bonus for fiscal year 2023.

(10)$225,000 represents six months of the NEO's annual base salary in effect on January 31, 2023. $900,000 represents 12 months of the NEO's annual base salary in effect on January 31, 2023, plus 100% of the NEO's target annual bonus for fiscal year 2023.

(11)Represents the accelerated vesting of 100% of the NEO’s unvested stock options, RSUs and PSUs as of January 31, 2023, assuming a change in control transaction occurs and such awards are not assumed, substituted, continued or canceled for a per-share amount payable to holders of common stock, less any applicable per-share exercise price payable upon exercise of such equity award, in connection with the transaction and such NEO’s employment continues.

(12)For Ms. Tejada, $1.2 million represents 12 months of the NEO's annual base salary in effect on January 31, 2023, plus 100% of the NEO's target annual bonus for fiscal year 2023, plus an additional $12,000. $17.7 million represents the accelerated vesting of 100% of the NEO’s unvested stock options, RSUs and PSUs as of January 31, 2023.

(13)For Ms. Tejada, $1.8 million represents 18 months of the NEO's annual base salary in effect on January 31, 2023, plus 100% of the NEO's target annual bonus for fiscal year 2023, plus an additional $12,000. Amounts for all NEO’s include the accelerated vesting of 100% of the NEO’s unvested stock options, RSUs and PSUs as of January 31, 2023.

(14)Ms. Giamalis did not have any shares that were eligible for acceleration when she departed the Company on May 6, 2022. In recognition of the transition services from April 25, 2022 through May 6, 2022 that Ms. Giamalis agreed to provide following her cessation as our Senior Vice President, Legal, General Counsel and Secretary, we agreed to provide her with a lump sum payment equal to six months of her then-current annual base salary ($169,770) pursuant to the Severance Policy’s “without cause” as described above, and 12 months of 100% COBRA premiums through May 31, 2023 ($13,488). Ms. Giamalis forfeited all her outstanding equity awards that were not vested at the time of her termination of employment.

Pension Benefits

Aside from our 401(k) Plan, we do not maintain any pension plan or arrangement under which our NEOs are entitled to participate or receive post-retirement benefits.

Non-Qualified Deferred Compensation

We do not maintain any non-qualified deferred compensation plans or arrangements under which our NEOs are entitled to participate.

Employee Benefit and Stock Plans

2019 EQUITY INCENTIVE PLAN

Our Board adopted and our stockholders approved our 2019 Equity Incentive Plan, in March 2019. The 2019 Plan became effective in connection with our IPO and was amended in March 2022 (as amended, the “2019 Plan”). The 2019 Plan provides for the grant of incentive stock options, or ISOs, nonstatutory stock options, or NSOs, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance-based stock awards, and other stock awards, or collectively, stock awards. ISOs may be granted only to our employees, including our officers, and the employees of our affiliates. All other awards may be granted to our employees, including our officers, our non-employee directors, and consultants, and the employees and consultants of our affiliates.

Plan Administration. Our Board, or a duly authorized committee of our Board, administers the 2019 Plan. Our Board may also delegate to one or more of our officers the authority to (1) designate employees (other than officers) to receive specified stock awards, and (2) determine the number of shares subject to such stock awards. Under the 2019 Plan, our Board has the authority to determine and amend the terms of awards, including (but not limited to) the recipients; the exercise, purchase, or


PagerDuty			63			2023 Proxy Statement

TABLE OF CONTENTS

strike price of stock awards, if any; the number of shares subject to each stock award; the fair market value of a share of our common stock; the vesting schedule applicable to the awards, together with any vesting acceleration; and the form of consideration, if any, payable upon exercise or settlement of the award. In addition, our Board also generally has the authority to effect, with the consent of any adversely affected participant, the reduction of the exercise, purchase, or strike price of any outstanding award; the cancellation of any outstanding stock award and the grant in substitution therefor of other awards, cash, or other consideration; or any other action that is treated as a repricing under generally accepted accounting principles.

Non-Employee Director Limitation. The maximum number of shares of common stock subject to awards granted under the 2019 Plan or otherwise during any one calendar year to any non-employee director, taken together with any cash fees paid by us to the non-employee director during that year for service on our Board, will not exceed $750,000 in total value (calculating the value of the awards based on the grant date fair value for financial reporting purposes), or, with respect to the calendar year in which a non-employee director is first appointed or elected to our Board, $1,000,000.

Stock Options. ISOs and NSOs are granted pursuant to stock option agreements adopted by the plan administrator. The plan administrator determines the exercise price for stock options, within the terms and conditions of the 2019 Plan, provided that the exercise price of a stock option generally cannot be less than 100% of the fair market value of our common stock on the date of grant. Options granted under the 2019 Plan vest at the rate specified in the stock option agreement as determined by the plan administrator. The maximum number of shares of our common stock that may be issued upon the exercise of ISOs under the 2019 Plan is equal to three times the aggregate number of shares initially reserved under the 2019 Plan.

Restricted Stock Unit Awards. Restricted stock unit awards are granted pursuant to restricted stock unit award agreements adopted by the plan administrator. Restricted stock unit awards may be granted in consideration for any form of legal consideration that may be acceptable to our Board and permissible under applicable law. A restricted stock unit award may be settled by cash, delivery of stock, a combination of cash and stock as deemed appropriate by the plan administrator, or in any other form of consideration set forth in the restricted stock unit award agreement. Additionally, dividend equivalents may be credited in respect of shares covered by a restricted stock unit award. Except as otherwise provided in the applicable award agreement, restricted stock units that have not vested will be forfeited once the participant’s continuous service ends for any reason.

Performance Stock Unit Awards. A performance stock award is a stock award that is payable (including that may be granted, may vest or may be exercised) contingent upon the attainment during a performance period of certain performance goals. The length of any performance period, the performance goals to be achieved during the performance period, and the measure of whether and to what degree such performance goals have been attained will be conclusively determined by the Board or the Compensation Committee, in its sole discretion. A performance stock award may be settled by cash, delivery of stock, a combination of cash and stock as deemed appropriate by the plan administrator, or in any other form of consideration set forth in the performance stock award agreement.

Corporate Transactions. The 2019 Plan provides that in the event of certain specified significant corporate transactions including: (1) a sale of all or substantially all of our assets, (2) the sale or disposition of more than 50% of our outstanding securities, (3) the consummation of a merger or consolidation where we do not survive the transaction, and (4) the consummation of a merger or consolidation where we do survive the transaction but the shares of our common stock outstanding prior to such transaction are converted or exchanged into other property by virtue of the transaction )”each, a “Corporate Transaction”), each outstanding award will be treated as the plan administrator determines unless otherwise provided in an instrument evidencing the stock award or other written agreement between us and the award holder. The following will apply to stock awards in such event:

•stock awards may be assumed by a surviving corporation or acquiring corporation;

•if the surviving corporation or acquiring corporation (or its parent company) does not (a) assume or continue such outstanding stock awards, (b) substitute similar awards for such outstanding stock awards, or (c) cancel such outstanding stock awards for a per-share payment, in such form as may be determined by the Board, equal in value, at the effective time of the Corporate Transaction, to the value of property payable to the holders of Common Stock in connection with such Corporate Transaction and reduced, if applicable, for the per-share exercise price payable for such stock award, the vesting of such stock awards will be accelerated in full to a date prior to the effective time of such Corporate Transaction (contingent upon the effectiveness of the Corporate Transaction) as the Board determines;


PagerDuty			64			2023 Proxy Statement

TABLE OF CONTENTS

•if surviving corporation or acquiring corporation (or its parent company) does not assume or continue such outstanding stock awards or substitute similar awards for such outstanding stock awards, then with respect to stock awards that have not been assumed, continued or substituted and that are held by persons other than Current Participants (as defined in the 2019 Plan), such stock awards will terminate if not exercised (if applicable) prior to the occurrence of the Corporate Transaction, subject to certain conditions set forth in the 2019 Plan;

•in the event a stock award will terminate if not exercised prior to the effective time of a Corporate Transaction, the Board may provide, in its sole discretion, that the holder of such stock award may not exercise such stock award but will receive a payment, in such form as may be determined by the Board, equal in value, at the effective time, to the excess, if any, of (1) the value of the property the Participant would have received upon the exercise of the stock award (including, at the discretion of the Board, any unvested portion of such stock award), over (2) any exercise price payable by such holder in connection with such exercise.

The plan administrator is not obligated to treat all stock awards or portions of stock awards, even those that are of the same type, in the same manner in the event of a corporate transaction.

In the event of a change in control, awards granted under the 2019 Plan will not receive automatic acceleration of vesting and/or exercisability, although this treatment may be provided for in an award agreement or in any other written agreement between us and the participant. Under the 2019 Plan, a change in control generally will be deemed to occur in the event: (1) the acquisition by any a person or company of more than 50% of the combined voting power of our then outstanding stock; (2) a merger, consolidation, or similar transaction in which our stockholders immediately before the transaction do not own, directly or indirectly, more than 50% of the combined outstanding voting power of the surviving entity or the parent of the surviving entity; (3) a sale, lease, exclusive license, or other disposition of all or substantially all of our assets other than to an entity more than 50% of the combined voting power of which is owned by our stockholders; or (4) an unapproved change in the majority of our Board.

2019 EMPLOYEE STOCK PURCHASE PLAN

Our Board adopted and our stockholders approved our 2019 Employee Stock Purchase Plan (the “ESPP”), in March 2019. The ESPP became effective in connection with our IPO.

The purpose of the ESPP is to secure the services of new employees, to retain the services of existing employees, and to provide incentives for such individuals to exert maximum efforts toward our success and that of our affiliates. The ESPP is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Code for U.S. employees. In addition, the ESPP authorizes grants of purchase rights that do not comply with Section 423 of the Code under a separate non-423 component. In particular, where such purchase rights are granted to employees who are employed or located outside the United States, our Board may adopt rules that are beyond the scope of Section 423 of the Code.

Administration. Our Board has delegated its authority to administer the ESPP to our Compensation Committee. The ESPP is implemented through a series of offerings under which eligible employees are granted purchase rights to purchase shares of our common stock on specified dates during such offerings. Under the ESPP, we may specify offerings with durations of not more than 27 months and may specify shorter purchase periods within each offering. Each offering will have one or more purchase dates on which shares of our common stock will be purchased for employees participating in the offering. An offering under the ESPP may be terminated under certain circumstances.

Payroll Deductions. Generally, all regular employees, including executive officers, employed by us or by any of our designated affiliates, may participate in the ESPP and may contribute, normally through payroll deductions, up to 15% of their earnings (as defined in the ESPP) for the purchase of our common stock under the ESPP. Unless otherwise determined by our Board, common stock will be purchased for the accounts of employees participating in the ESPP at a price per share that is at least the lesser of (1) 85% of the fair market value of a share of our common stock on the first date of an offering, or (2) 85% of the fair market value of a share of our common stock on the date of purchase.

Corporate Transactions. The ESPP provides that in the event of certain specified significant corporate transactions including: (1) a sale of all or substantially all of our assets, (2) the sale or disposition of more than 50% of our outstanding securities, (3) the consummation of a merger or consolidation where we do not survive the transaction, and (4) the consummation of a merger or consolidation where we do survive the transaction but the shares of our common stock outstanding prior to such transaction are converted or exchanged into other property by virtue of the transaction, a successor corporation may


PagerDuty			65			2023 Proxy Statement

TABLE OF CONTENTS

assume, continue or substitute each outstanding purchase right. If the successor corporation does not assume, continue, or substitute for the outstanding purchase rights, the offering in progress will be shortened and a new exercise date will be set. The participants’ purchase rights will be exercised on the new exercise date and such purchase rights will terminate immediately thereafter.

2010 STOCK PLAN

Our Board adopted and our stockholders approved our 2010 Stock Plan, or the 2010 Plan, in September 2010. The 2010 Plan has been periodically amended, most recently in July 2018. The 2010 Plan provides for the grant of ISOs to our employees, any parent or certain of our subsidiary companies, and for the grant of NSOs and restricted shares to such employees, our directors, and to consultants engaged by us or any of our subsidiary companies. The 2010 Plan was terminated in connection with our IPO, and all outstanding awards granted under the 2010 Plan remain subject to the terms of the 2010 Plan.

Plan Administration. Our Board (referred to as the plan administrator for purposes of the 2010 Plan) administers and interprets the provisions of the 2010 Plan. Under the 2010 Plan, the plan administrator has the authority to, among other things, accelerate the vesting of awards and institute and determine the terms of an option exchange program under which outstanding stock options are exchanged for stock options with a lower exercise price or restricted stock or are amended to decrease the exercise price as a result of a decline in the fair market value of our common stock.

Stock Options and Restricted Shares. Stock options and restricted shares granted under the 2010 Plan generally have terms similar to those described above with respect to stock options and restricted shares granted under the 2019 Plan.

Corporate Transactions. In the event of a sale of all or substantially all of our assets or a merger, consolidation, or other capital reorganization or business combination of us with or into another corporation, entity, or person, each outstanding option shall either be assumed or an equivalent option or right shall be substituted or terminated in exchange for a payment of cash or other property with respect to vested options, and such payment will be equal to the difference between the exercise price and the fair market value of the portion of the optioned stock. In the event the option is not assumed, substituted, or exchanged, then each such stock option shall terminate upon the consummation of the foregoing corporate transaction.

401(K) PLAN

We maintain a tax-qualified defined contribution retirement plan under Section 401(k) of the Internal Revenue Code that provides eligible U.S. employees with an opportunity to save for retirement on a tax advantaged basis. Eligible employees may defer eligible compensation on a pre-tax and/or post-tax basis, up to the statutory annual limits on contributions under the Code. Employee contributions are allocated to each participant’s individual account and are then invested in selected investment alternatives according to the participant’s directions. Participants are immediately and fully vested in their contributions. The 401(k) plan is intended to be qualified under Section 401(a) of the Code with the 401(k) plan’s related trust intended to be tax exempt under Section 501(a) of the Code. As a tax-qualified retirement plan, contributions to the 401(k) plan and earnings on those contributions are not taxable to the employees until distributed from the 401(k) plan. Our 401(k) plan provides for discretionary matching of employee contributions. For Fiscal 2023, the employer matching contribution was up to two percent (2%) of each participant’s employee contributions of up to two percent (2%) of eligible wages during the period as defined in the 401(k) Plan.


PagerDuty			66			2023 Proxy Statement

TABLE OF CONTENTS

Equity Compensation Plan Information

The following table provides information as of January 31, 2023 with respect to the shares of our common stock that may be issued under our existing equity compensation plans.


Plan Category	(a) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (#)	(b) Weighted Average Exercise Price of Outstanding Options, Warrants and Rights ($)(1)	(c) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (#)

Equity compensation plans approved by stockholders(2)	6,150,981	9.23	26,154,301
Equity compensation plans not approved by stockholders	—	—	—
Total	6,150,981		26,154,301

(1)The weighted-average exercise price is calculated based solely on outstanding stock options. It does not reflect the shares that will be issued in connection with the settlement of restricted stock units, since restricted stock units have no exercise price.

(2)Includes our 2010 Plan, 2019 Plan and our ESPP. The shares of common stock underlying any awards that are forfeited, canceled, held back upon exercise or settlement of an award to satisfy the exercise price or tax withholding, reacquired by us prior to vesting, satisfied without the issuance of stock, expire or are otherwise terminated, other than by exercise, under the 2010 Plan and the 2019 Plan will be added back to the shares of common stock available for issuance under the 2019 Plan. We no longer make grants under the 2010 Plan. Our 2019 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each February 1, beginning on February 1, 2020, by 5% of the outstanding number of shares of our common stock on the immediately preceding January 31 or such lesser number of shares as determined by our compensation committee. The ESPP provides that the number of shares reserved and available for issuance will automatically increase each February 1, beginning on February 1, 2020, by the lesser of 1,850,000 shares of our common stock, 1% of the outstanding number of shares of our common stock on the immediately preceding January 31, or such lesser number of shares as determined by our compensation committee. On February 1, 2023, the number of shares available for issuance under our 2019 Plan and our ESPP increased by 4,558,933 shares and 911,786 shares, respectively, pursuant to these provisions. These increases are not reflected in the table above.


PagerDuty			67			2023 Proxy Statement

TABLE OF CONTENTS

Additional Compensation Matters

CEO Pay Ratio

As required by Item 402(u) of Regulation S-K, we are disclosing the following information about the relationship of the median of the annual total compensation of all our employees (other than our CEO), and the annual total compensation of our CEO, Ms. Tejada, for fiscal 2023.

CEO PAY RATIO FOR FISCAL 2023

•The median of the annual total compensation of all our employees, excluding our CEO, was $271,876;

•The annual total compensation of our CEO, as reported in the Summary Compensation Table for Fiscal Year 2023 included in this Proxy Statement, was $22,717,297; and

•The ratio of the annual total compensation of our CEO to the median of the annual total compensation of all our employees was 84 to 1.

This ratio is a reasonable estimate calculated in a manner consistent with SEC rules.

METHODOLOGY

Since there has been no change in our employee population or employee compensation arrangements in the past fiscal year that we reasonably believe would result in a significant change to our pay ratio disclosure, we have elected to use the same median employee that was identified for fiscal 2022 to calculate our fiscal 2023 CEO pay ratio, as allowed by Item 402(u) of Regulation S-K.

The methodology and the material assumptions, adjustments and estimates used to identify the median of the annual total compensation of all our employees for fiscal 2022 were based on the following:

Our median employee was identified from all full-time, part-time, seasonal, and temporary employees as of January 31, 2022, the last day of our fiscal year (other than our CEO). As of January 31, 2022, we and our consolidated subsidiaries employed approximately 966 individuals. We did not include any contractors or other non-employee workers in our employee population.

To identify our median employee from our employee population, we calculated the aggregate amount of each employee’s (i) base salary or gross wages paid, (ii) bonuses and cash incentives paid, and (iii) the grant date fair value, calculated in accordance with ASC Topic 718, of equity awards granted, in each case during the period from February 1, 2021 through January 31, 2022, which compensation measure was consistently applied. Amounts under items (i) and (ii) above were annualized for any permanent employees who commenced work during fiscal 2022. We annualized the base salary or wages of all permanent (full-time and part-time) employees who were employed by us for less than the entire calendar year. We selected the foregoing compensation elements because they represented our principal broad-based compensation elements.

Compensation not paid in U.S. dollars was converted to U.S. dollars using the foreign exchange rates in effect as of January 31, 2022.

CALCULATION

Having previously identified our median employee using the aforementioned methodology, we then calculated the annual total compensation of this employee for fiscal 2023 in accordance with the requirements of the Summary Compensation Table for Fiscal Year 2023.

We determined our CEO’s annual total compensation for fiscal 2023 as reported in our Summary Compensation Table for Fiscal Year 2023.

The SEC rules allow companies to adopt a variety of methodologies, apply certain exclusions, and make reasonable estimates and assumptions that reflect their employee population and compensation practices, therefore the pay ratio reported by other companies may not be comparable to our pay ratio. As explained by the SEC when it adopted these rules, the rule was not designed to facilitate comparisons of pay ratios among different companies, even companies within the same industry, but rather to allow stockholders to better understand and assess each particular company’s compensation practices and pay ratio disclosures.


PagerDuty			68			2023 Proxy Statement

TABLE OF CONTENTS

Pay Versus Performance

As required by Item 402(v) of Regulation S-K, we are providing the following information about the relationship between the executive compensation actually paid to our Named Executive Officers for the fiscal years ended January 31, 2023, January 31, 2022, and January 31, 2021 and certain aspects of our financial performance. The disclosure in this section is prescribed by Item 402(v) of Regulation S-K and does not necessarily align with how the Company or the Compensation Committee view the link between NEO compensation and the Company’s performance. For further information concerning our “pay for performance” philosophy and how we align executive compensation with our performance, please refer to “Compensation Discussion and Analysis.”

Required Tabular Disclosure of Pay Versus Performance


					Value of Initial Fixed $100 Investment Based on:
Year	Summary Compensation Table Total for PEO ($)(1)	Compensation Actually Paid to PEO ($)(2)	Average Summary Compensation Table Total for Non-PEO Named Executive Officers ($)(3)	Average CompensationActually Paid to Non-PEO Named Executive Officers ($)(4)	Total Stockholder Return ($)(5)	Peer Group Total Stockholder Return ($)(6)	Net Loss Attributable to PagerDuty, Inc. (in thousands) ($)(7)	Company-Selected Measure – Non-GAAP Operating Margin (%)(8)

Fiscal 2023	22,717,297	5,284,214	5,818,780	2,306,198	127.74	116.71	(128,423)	1%
Fiscal 2022	13,268,568	(1,510,440)	5,274,403	1,884,137	141.60	142.87	(107,455)	(8)%
Fiscal 2021	6,686,894	39,741,417	2,389,866	9,459,672	208.96	147.32	(68,903)	(8)%

(1)Represents the amount of total compensation reported for Ms. Tejada (our “PEO”) for each covered fiscal year in the “Total” column of the Summary Compensation Table for such fiscal year. Please refer to “Executive Compensation Summary Compensation Table for Fiscal Year 2023.”

(2)Represents the amount of executive “compensation actually paid” to our PEO, as computed in accordance with Item 402(v) of Regulation S-K for each covered fiscal year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to our PEO’s total compensation for each covered fiscal year to determine the compensation actually paid:


Year	Reported Summary Compensation Table Total for PEO ($)	Deduct: Reported Value of Equity Awards ($)(a)	Add: Equity Award Adjustments ($)(b)	Compensation Actually Paid to PEO ($)

Fiscal 2023	22,717,297	21,286,825	3,853,682	5,284,214
Fiscal 2022	13,268,568	11,867,582	(2,911,426)	(1,510,440)
Fiscal 2021	6,686,894	5,646,686	38,701,209	39,741,417

(a)These deductions are the amounts listed in the “Stock Awards” and “Option Awards” columns in the Summary Compensation Table and represent the grant date fair value of the equity awards for each covered fiscal year.

(b)The equity award adjustments for each covered fiscal year include the addition (or subtraction, as applicable) of the following: (i) addition of the year-end fair value of any equity awards granted in the covered fiscal year that are outstanding and unvested as of the end of the covered fiscal year; (ii) addition of the amount equal to the change as of the end of the covered fiscal year (from the end of the prior fiscal year) in fair value (whether positive or negative) of any equity awards granted in any prior fiscal year that are outstanding and unvested as of the end of the covered fiscal year; (iii) addition, for equity awards that are granted and vest in the same covered fiscal year, of the fair value as of the vesting date; (iv) addition, for equity awards granted in any prior fiscal year for which all applicable vesting conditions were satisfied at the end of or during the covered fiscal year, of the amount equal to the


PagerDuty			69			2023 Proxy Statement

TABLE OF CONTENTS

change as of the vesting date (from the end of the prior fiscal year) in fair value (whether positive or negative); (v) subtraction, for equity awards granted in any prior fiscal year that are determined to fail to meet the applicable vesting conditions during the covered fiscal year, of the amount equal to the fair value at the end of the prior fiscal year; and (vi) addition of the dollar value of any dividends or other earnings paid on stock or option awards in the covered fiscal year prior to the vesting date that are not otherwise included in the total compensation for the covered fiscal year.

The valuation assumptions used to calculate the fair values of the stock options held by our PEO that vested during or were outstanding as of the end of each covered fiscal year materially differed from those valuation assumptions disclosed at the time of grant in the following respects: the expected term assumptions varied from 1.48 years to 5.65 years, the stock price volatility assumptions varied from 41.95% to 55.32%, and the risk-free interest rate assumptions varied from 0.09% to 4.35% , depending on the specific stock option the fair value of which was being recalculated. The valuation assumptions used to calculate the fair values of the time-based restricted stock unit (“RSU”) awards and performance-based restricted stock unit (“PSU”) award held by our PEO that vested during or were outstanding as of the end of each covered fiscal year (including the probable outcome of any such awards subject to performance conditions) did not materially differ from those valuation assumptions disclosed at the time of grant.

The amounts deducted or added in calculating the equity award adjustments in accordance with the SEC methodology for determining compensation actually paid are as follows:


Year	Year End Fair Value of Equity Awards Granted in Covered Year ($)(a)	Add: Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards Granted in Prior Fiscal Years ($)	Add: Fair Value as of Vesting Date of Equity Awards Granted and Vested in Same Year ($)	Add: Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in Covered Year ($)	Deduct: Fair Value at End of Prior Year of Equity Awards that Failed to Meet Vesting Conditions in Covered Year ($)	Add: Value of Dividends or other Earnings Paid on Stock or Option Awards not Otherwise Reflected in Fair Value or Total Compensation(a) ($)	Total Equity Award Adjustments ($)

Fiscal 2023	7,528,201	(1,829,091)	1,459,118	(3,304,546)	—	—	3,853,682
Fiscal 2022	8,494,281	(7,822,641)	1,790,485	(5,373,551)	—	—	(2,911,426)
Fiscal 2021	14,069,861	21,433,599	2,206,341	991,407	—	—	38,701,208

(a)Year-end fair value does not include performance stock unit (“PSU”) awards that were granted in April 2022 or July 2022. Because such awards did not achieve threshold performance level as of the end of fiscal 2023 (which was the end of the applicable performance period), the fair value of such awards was $0 as of the end of fiscal 2023.

(3)Represents the average of the amounts of total compensation reported for our named executive officers (our “NEOs”) as a group (excluding Ms. Tejada, who has served as our PEO since 2012) for each covered fiscal year in the “Total” column of the Summary Compensation Table for such fiscal year. Please refer to “Executive Compensation – Summary Compensation Table for Fiscal Year 2023.” The names of each NEO (excluding our PEO) included for purposes of calculating the average of the amounts of total compensation in each covered fiscal year are as follows: (i) for fiscal 2023, Howard Wilson, our Chief Financial Officer, David Justice, our Executive Vice President, Chief Revenue Officer, Shelley Webb, our Senior Vice President, Legal and General Counsel; and Stacey Giamalis, our former Senior Vice President, Legal, General Counsel, and Secretary; (iii) for fiscal 2022, Howard Wilson, our Chief Financial Officer, David Justice, our Executive Vice President, Chief Revenue Officer, and Stacey Giamalis, our Senior Vice President, Legal, General Counsel, and Secretary; and (iii) for fiscal 2021, Howard Wilson, our Chief Financial Officer, David Justice, our Executive Vice President, Chief Revenue Officer, and Stacey Giamalis, our Senior Vice President, Legal, General Counsel, and Secretary.


PagerDuty			70			2023 Proxy Statement

TABLE OF CONTENTS

(4)Represents the average of the amount of executive “compensation actually paid” to our NEOs as a group (excluding our PEO), as computed in accordance with Item 402(v) of Regulation S-K for each covered fiscal year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to the average of the total compensation of such NEOs with respect to each covered fiscal year to determine the compensation actually paid, using the same methodology described above in Note 2(b):


Year	Average Reported Summary Compensation Table Total for Non-PEO Named Executive Officers ($)	Deduct: Average Reported Value of Equity Awards ($)(a)	Add: Average Equity Award Adjustments ($)(b)	Average Compensation Actually Paid to Non-PEO Named Executive Officers ($)

Fiscal 2023	5,818,780	5,126,160	1,613,578	2,306,198
Fiscal 2022	5,274,403	4,454,273	1,064,007	1,884,137
Fiscal 2021	2,389,866	1,731,650	8,801,456	9,459,672

(b)The valuation assumptions used to calculate the fair values of the stock options held by our NEOs as a group (excluding our PEO) that vested during or were outstanding as of the end of each covered fiscal year materially differed from those valuation assumptions disclosed at the time of grant in the following respects: the expected term assumptions varied from 0.32 years to 6.07 years, the stock price volatility assumptions varied from 40.82% to 61.11%, and the risk-free interest rate assumptions varied from 0.09% to 4.35%, depending on the specific stock option the fair value of which was being recalculated. The valuation assumptions used to calculate the fair values of the RSU awards held by our NEOs as a group (excluding our PEO) that vested during or were outstanding as of the end of each covered fiscal year did not materially differ from those valuation assumptions disclosed at the time of grant.

The amounts deducted or added in calculating the average equity award adjustments in accordance with the SEC methodology for determining compensation actually paid are as follows:


Year	Average Year End Fair Value of Equity Awards Granted in Covered Year ($)(a)	Add: Year over Year Average Change in Fair Value of Outstanding and Unvested Equity Awards Granted in Prior Fiscal Years ($)	Add: Average Fair Value as of Vesting Date of Equity Awards Granted and Vested in Same Year ($)	Add: Year over Year Average Change in Fair Value of Equity Awards Granted in Prior Years that Vested in Covered Year ($)	Deduct: Average Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in Covered Year ($)	Add: Average Value of Dividends or other Earnings Paid on Stock or Option Awards not Otherwise Reflected in Fair Value ($)	Average Equity Award Adjustments ($)

Fiscal 2023	2,565,895	(266,887)	558,589	(406,221)	(837,798)	—	1,613,578
Fiscal 2022	3,268,291	(1,640,522)	447,608	(1,011,370)	—	—	1,064,007
Fiscal 2021	4,503,513	3,346,650	548,342	402,951	—	—	8,801,456

(a)Year-end fair value does not include performance stock unit (“PSU”) awards that were granted in April 2022 and July 2022 which did not achieve threshold performance level as of the end of fiscal 2023.

(5)Total stockholder return (“TSR”) is determined based on an initial fixed investment of $100 on January 31, 2020. Cumulative TSR is calculated by dividing the sum of the cumulative amount of dividends for the measurement period, assuming dividend reinvestment, and the difference between our share price at the end and the beginning of the measurement period by our share price at the beginning of the measurement period.

(6)Represents the weighted peer group TSR, weighted according to the respective companies’ stock market capitalization at the beginning of each period for which a return is indicated. The peer group used for this purpose is the following published industry index: the S&P Software & Services Select Industry Index.

(7)The dollar amounts reported represent the amount of net loss attributable to PagerDuty, Inc. reflected in our audited financial statements for each covered fiscal year.


PagerDuty			71			2023 Proxy Statement

TABLE OF CONTENTS

(8)“Operating Margin” is defined as our non-GAAP operating margin as defined in our periodic reports filed with the Securities and Exchange Commission for fiscal 2023. We define “non-GAAP operating margin” as GAAP operating margin excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, and restructuring costs. We believe that these expenses are not necessarily reflective of operational performance during a period. In particular, we believe the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses. While we use numerous financial and non-financial performance measures for the purpose of evaluating performance for our executive compensation program, we have determined that operating margin is the financial performance measure that, in our assessment, represents the most important performance measure (that is not otherwise required to be disclosed in the table) used by us to link compensation actually paid to our PEO and other NEOs, for the most recently completed fiscal year, to our performance.To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use certain non-GAAP financial measures. For a full reconciliation of the U.S. GAAP to non-GAAP measures, please see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures” of our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2023.

Financial Performance Measures

As described in greater detail in “Compensation Discussion and Analysis,” our executive compensation program is designed to reflect our variable “pay-for-performance” philosophy. The performance measures that we use for both our short-term and long-term incentive award programs are selected based on an objective of incentivizing our PEO and our other NEOs to increase the value of our enterprise for our stockholders, and are among the most important financial performance measures used by us to link executive compensation actually paid to our PEO and our other NEOs, to our performance for the most recently completed fiscal year. Overall, the most important financial performance measures for the most recently completed fiscal year are as follows:

n Non-GAAP operating margin

n Revenue

n Net new annual recurring revenue

n Net loss attributable to PagerDuty, Inc.

REQUIRED DISCLOSURE OF THE RELATIONSHIP BETWEEN COMPENSATION ACTUALLY PAID AND FINANCIAL PERFORMANCE MEASURES

As described in more detail in “Compensation Discussion and Analysis,” our executive compensation program reflects a variable “pay-for-performance” philosophy. While over the years we have used several different performance measures to align executive compensation with our performance, not all of these performance measures are presented in the Pay-Versus-Performance Table. Moreover, while we generally seek to prioritize long-term performance as our primary incentive for our PEO and our other NEOs, we do not specifically align our performance measures with compensation that is actually paid (as computed in accordance with Item 402(v) of Regulation S-K) for a particular year. In accordance with Item 402(v) of Regulation S-K, we are providing the following descriptions of the relationships between the information presented in the Pay-Versus-Performance Table.


PagerDuty			72			2023 Proxy Statement

TABLE OF CONTENTS

COMPENSATION ACTUALLY PAID AND COMPANY TSR AND COMPANY TSR AND PEER GROUP TSR

The graph below compares our TSR and CEO and other NEO compensation actually paid for the three fiscal years beginning with fiscal 2021. As illustrated in the following graph, the amount of the compensation actually paid to our PEO and the average amount of compensation actually paid to our other NEOs as a group (excluding our PEO) is generally directionally aligned with our TSR for the period presented in the Pay-Versus-Performance Table.

COMPENSATION ACTUALLY PAID AND NET LOSS ATTRIBUTABLE TO PAGERDUTY, INC

The graph below compares our net loss attributable to PagerDuty, Inc. and CEO and other NEO compensation actually paid for the three fiscal years beginning with fiscal 2021. We do not use net loss attributable to PagerDuty, Inc. as a financial performance measure in our overall executive compensation program, so there is, at best, only an indirect correlation between our profitability and the various financial performance measures which we use when setting goals in our short-term incentive compensation program.


PagerDuty			73			2023 Proxy Statement

TABLE OF CONTENTS

COMPENSATION ACTUALLY PAID AND NON-GAAP OPERATING MARGIN

The graph below compares our Non-GAAP Operating Margin and CEO and other NEO compensation actually paid for the three fiscal years beginning with fiscal 2021. As illustrated by the graph, the amount of compensation actually paid to our PEO and the average amount of compensation actually paid to our other NEOs as a group (excluding our PEO) is generally directionally aligned with the changes in our Non-GAAP Operating Margin over the period presented in the Pay-Versus-Performance Table.


PagerDuty			74			2023 Proxy Statement

TABLE OF CONTENTS

Security Ownership of Certain
Beneficial Owners and Management

The following table sets forth certain information regarding the ownership of the Company’s common stock as of March 31, 2023 (or as of the date otherwise indicated below) by: (i) each director and nominee for director; (ii) each of the executive officers named in “Executive Compensation—Summary Compensation Table for Fiscal Year 2022; (iii) all executive officers and directors of the Company as a group; and (iv) all those known by the Company to be beneficial owners of more than five percent of its common stock.

We have based percentage ownership of our common stock on 87,359,232 shares of our common stock outstanding as of March 31, 2023.

Unless otherwise indicated, the address of each beneficial owner listed below is c/o PagerDuty, Inc., 600 Townsend St., Suite 200, San Francisco, CA 94103.


	Common Stock


Name of Beneficial Owner	Number (#)	Percentage (%)

5% Stockholders
ARK Investment Management LLC(1)	10,097,244	11.6
BlackRock, Inc.(2)	8,376,760	9.6
The Vanguard Group, Inc.(3)	8,057,944	9.2
Nikko Asset Management Americas, Inc.(4)	5,361,415	6.1
Named Executive Officers and Directors
Jennifer Tejada(5)	2,865,147	3.3
Howard Wilson(6)	647,380	0.7
Shelley Webb(7)	11,624	*
David Justice	100,103	*
Stacey Giamalis	101,439	*
Alex Solomon(8)	2,737,101	3.1
Sameer Dholakia	22,784	*
Alec Gallimore	13,157	*
William Losch	—	—
Elena Gomez(9)	168,689	*
Rathi Murthy(10)	156,430	*
Zachary Nelson	306,008	*
Bonita Stewart	6,830	*
All directors and executive officers as a group(11) (11 persons)	6,935,150	7.9

* Represents beneficial ownership of less than 1%.

(1)Based upon the information provided by ARK Investment Management LLC (“ARK”) in a Schedule 13G/A filed on February 10, 2023. According to the filing, ARK has sole voting power with respect to 9,242,698 shares of common stock, shared voting power over


PagerDuty			75			2023 Proxy Statement

TABLE OF CONTENTS

555,997 shares of common stock, sole dispositive power over 10,097,244 shares of common stock, and no shared dispositive power. The principal business address of ARK is 200 Central Avenue, St. Petersburg, FL 33701.

(2)Based upon the information provided by BlackRock, Inc. (“BlackRock”) in a Schedule 13G/A filed on February 24, 2023. According to the filing, BlackRock has sole voting power with respect to 7,989,341 shares of common stock, sole dispositive power over 8,376,760 shares of common stock and no shared voting or dispositive power. The principal business address of BlackRock, Inc. 55 East 52nd Street, New York, NY 10055.

(3)Based upon the information provided by The Vanguard Group, Inc. (“Vanguard”) in a Schedule 13G/A filed on February 9, 2023. According to the filing, Vanguard has shared voting power over 145,238 shares of common stock, no sole voting power, sole dispositive power over 7,831,414 shares of common stock, and shared dispositive power with respect to 226,530 shares of common stock. The principal business address of Vanguard is 100 Vanguard Blvd., Malvern, PA 19355.

(4)Based upon the information provided by Nikko Asset Management Americas, Inc. (“Nikko Americas”) in a Schedule 13G/A filed on February 10, 2023. According to the filing, Nikko Americas has shared voting power with respect to 3,467,925 shares of common stock and shared dispositive power over 5,361,415 shares of common stock, and no sole voting or dispositive power. The principal business address of Nikko Americas is 605 Third Avenue, 38th Floor, New York, NY 10158. According to a Schedule 13G filing filed on February 3, 2023, Sumitomo Mitsui Trust Holdings, Inc. (“SMTH”) and Nikko Asset Management Co., Ltd. (“Nikko”) each have shared voting and dispositive power over the shares beneficially owned by Nikko Americas. The Schedule 13G/A contained information as of December 31, 2022 and may not reflect current holdings of our common stock. The principal business address of SMTH is 1-4-1 Marunouchi, Chiyoda-ku, Tokyo 100-8233, Japan, and the principal business address of Nikko is Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo 107-6242, Japan.

(5)Consists of (i) 72,072 shares each held indirectly by Jennifer Tejada, as Trustee of the Tejada 2022 Grantor Retained Annuity Trust - I and Jennifer Gail Tejada, as Trustee of the Tejada 2022 Grantor Retained Annuity Trust - II, (ii) 144,500 shares held indirectly by Jennifer Tejada, as Trustee of the Langford Isand Trust (iii) 2,514,047 shares subject to options exercisable within 60 days of March 31, 2023, and (iv) 56,663 shares issuable upon the settlement of RSUs releasable within 60 days of March 31, 2023.

(6)Consists of(i) 420,956 shares subject to options exercisable within 60 days of March 31, 2023, and (ii) 25,720 shares issuable upon the settlement of RSUs releasable within 60 days of March 31, 2023.

(7)Consists of 9,641 shares issuable upon the settlement of RSUs releasable within 60 days of March 31, 2023.

(8)Consists of 1,322 shares issuable upon the settlement of RSUs releasable within 60 days of March 31, 2023.

(9)Consists of 161,140 shares subject to options exercisable within 60 days of March 31, 2023, all of which are fully vested as of such date.

(10)Consists of 148,881 shares subject to options exercisable within 60 days of March 31, 2023, all of which are fully vested as of such date.

(11)Consists of (i) 6,935,150 shares owned by our current executive officers and directors, (ii) 3,245,024 shares subject to options exercisable within 60 days of March 31, 2023 and (iii) 93,346 shares issuable upon the settlement of RSUs releasable within 60 days of March 31, 2023.

Delinquent Section 16(a) Reports

Section 16(a) of the Exchange Act requires our directors and executive officers, and persons who own more than ten percent of a registered class of our equity securities, to file with the SEC initial reports of ownership and reports of changes in ownership of common stock and other equity securities of the Company. Officers, directors and greater than ten percent stockholders are required by SEC regulation to furnish us with copies of all Section 16(a) forms they file.

To our knowledge, based solely on our review of the copies of such forms furnished to us and written representations from these officers and directors, we believe that all Section 16(a) filing requirements were met during the year ended January 31, 2023, except for one late Form 4 filing by each of Mr. Wilson and Ms. Gomez due to clerical errors with the broker of the transactions.


PagerDuty			76			2023 Proxy Statement

TABLE OF CONTENTS

Transactions With Related
Persons and Indemnification

Related Person Transactions Policy and Procedures

We maintain a written related-person transaction policy (the “Related-Person Transaction Policy”) that sets forth our procedures for the identification, review, consideration and approval or ratification of related person transactions. For purposes of our policy only, a related person transaction is a transaction, arrangement or relationship, or any series of similar transactions, arrangements or relationships, in which we and any related person are, were or will be participants and in which the amount involved exceeds $120,000. Transactions involving compensation for services provided to us as an employee or director are not considered related party transactions under this policy. A transaction, arrangement or relationship in which a related person’s participation is solely due to such related person’s position as a director of an entity that is participating in such transaction, arrangement or relationship would not be considered a related party transaction under this policy. A related person is any executive officer, director or beneficial owner of more than 5% of any class of our voting securities, including any of their immediate family members and any entity owned or controlled by such persons.

Under the Related-Person Transaction Policy, if a transaction has been identified as a related person transaction, including any transaction that was not a related person transaction when originally consummated or any transaction that was not initially identified as a related person transaction prior to consummation, our management must present information regarding the related person transaction to the Audit Committee, or, if Audit Committee approval would be inappropriate, to another independent body of the Board, for review, consideration and approval or ratification. The presentation must include a description of, among other things: all of the parties to the transaction; the material facts of the proposed transaction; the interests, direct and indirect, of the related persons; the purpose of the transaction; the benefits to us of the transaction; whether the transaction is on terms that are comparable to the terms available to or from, as the case may be, an unrelated third party or to or from employees generally; and management’s recommendation with respect to the proposed transaction. Under the Related-Person Transaction Policy, we will collect information that we deem reasonably necessary from each director, executive officer and, to the extent feasible, significant stockholder to enable us to identify any existing or potential related person transactions and to effectuate the terms of the Related-Person Transaction Policy.

In addition, under our Code of Conduct, our employees and directors have an affirmative responsibility to disclose any transaction or relationship that reasonably could be expected to give rise to a conflict of interest.

In considering related-person transactions, the Audit Committee, or other independent body of the Board, will take into account the relevant available facts and circumstances including, but not limited to:

•the risks, costs and benefits to the Company;

•the impact on a director’s independence in the event the related person is a director, immediate family member of a director or an entity with which a director is affiliated;

•the terms of the transaction;

•the availability of other sources for comparable services or products; and

•the terms available to or from, as the case may be, unrelated third parties or to or from employees generally.

The Related-Person Transaction Policy requires that, in determining whether to approve, ratify or reject a related-person transaction, the Audit Committee, or other independent body of the Board, must consider, in light of known circumstances, whether the transaction is in, or is not inconsistent with, our best interests and those of our stockholders, as the Audit Committee, or other independent body of the Board, determines in the good faith exercise of its discretion.


PagerDuty			77			2023 Proxy Statement

TABLE OF CONTENTS

Certain Related-Person Transactions

The following is a summary of transactions since February 1, 2022, to which we have been a participant in which the amount involved exceeded or will exceed $120,000, and in which any of our directors, executive officers or holders of more than five percent of our capital stock, or any member of the immediate family of the foregoing persons, had or will have a direct or indirect material interest, other than compensation arrangements which are described in the sections titled “Executive Compensation” and “Director Compensation—Non-Employee Director Compensation.”

TRANSACTIONS WITH EXPEDIA GROUP

We entered into a master service agreement with Expedia Group in June 2016. Pursuant to the agreement, we recognized revenue from Expedia Group of approximately $1,334,000 in fiscal year 2023. Rathi Murthy, a member of our Board since March 2019, has served as the President and Chief Technology Officer of Expedia Group since June 2021.

EQUITY GRANTS TO DIRECTORS AND EXECUTIVE OFFICERS

We have granted options and RSUs and PSUs to certain of our directors and executive officers. For more information regarding the stock awards granted to our directors and NEOs see “Executive Compensation” and “Security Ownership of Certain Beneficial Owners and Management.”

EMPLOYMENT AGREEMENTS

We have entered into offer letter agreements or employment agreements with certain of our executive officers. For more information regarding these agreements with our NEOs, see “Executive Compensation—Employment, Severance and Change in Control Agreements.”

INDEMNIFICATION AGREEMENTS

Our amended and restated certificate of incorporation contains provisions that limit the liability of our current and former directors for monetary damages to the fullest extent permitted by Delaware law. Delaware law provides that directors of a corporation will not be personally liable for monetary damages for any breach of fiduciary duties as directors, except liability for:

•any breach of the director’s duty of loyalty to the corporation or its stockholders;

•any act or omission not in good faith or that involves intentional misconduct or a knowing violation of law;

•unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the Delaware General Corporation Law; or

•any transaction from which the director derived an improper personal benefit

This limitation of liability does not apply to liabilities arising under federal securities laws and does not affect the availability of equitable remedies such as injunctive relief or rescission.

Our amended and restated certificate of incorporation provides that we are authorized to indemnify our directors and officers to the fullest extent permitted by Delaware law. Our amended and restated bylaws provide that we are required to indemnify our directors and executive officers to the fullest extent permitted by Delaware law. Our amended and restated bylaws also provide that, upon satisfaction of certain conditions, we are required to advance expenses incurred by a director or executive officer in advance of the final disposition of any action or proceeding, and permit us to secure insurance on behalf of any officer, director, employee or other agent for any liability arising out of his or her actions in that capacity regardless of whether we would otherwise be permitted to indemnify him or her under the provisions of Delaware law. Our amended and restated bylaws also provide our Board with discretion to indemnify our other officers and employees when determined appropriate by our Board. We have entered and expect to continue to enter into agreements to indemnify our directors, executive officers and other employees as determined by the Board. With certain exceptions, these agreements provide for indemnification for related expenses (including, among other things, attorneys’ fees), judgments, fines and settlement amounts incurred by any of these individuals in any action or proceeding. We believe that these provisions and agreements are necessary to attract and retain qualified persons as directors and officers. We also maintain customary directors’ and officers’ liability insurance.

The limitation of liability and indemnification provisions in our amended and restated certificate of incorporation and amended and restated bylaws may discourage stockholders from bringing a lawsuit against our directors for breach of their fiduciary duty. They may also reduce the likelihood of derivative litigation against our directors and officers, even though an action, if


PagerDuty			78			2023 Proxy Statement

TABLE OF CONTENTS

successful, might benefit us and other stockholders. Further, a stockholder’s investment may be adversely affected to the extent that we pay the costs of settlement and damage awards against directors and officers as required by these indemnification provisions. At present, there is no pending litigation or proceeding involving any of our directors, officers or employees for which indemnification is sought, and we are not aware of any threatened litigation that may result in claims for indemnification.

Householding of Proxy Materials

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 PagerDuty stockholders will be “householding” the Company’s proxy materials. A single Notice of Internet Availability of Proxy Materials will 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 PagerDuty. Direct your written request to PagerDuty, Inc., Investor Relations, 600 Townsend St., Suite 200, San Francisco, California 94103. 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.


PagerDuty			79			2023 Proxy Statement

TABLE OF CONTENTS

Other Matters

The Board 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 on such matters in accordance with their best judgment.

By Order of the Board of Directors

Jennifer Tejada

Chief Executive Officer

May 2, 2023



			We have filed our Annual Report on Form 10-K for the fiscal year ended January 31, 2023 with the SEC. It is available free of charge at the SEC’s web site at www.sec.gov. Our Annual Report and this Proxy Statement are posted on our website at https://investor.pagerduty.com and are available from the SEC at its website at www.sec.gov. A copy of the Company’s Annual Report to the Securities and Exchange Commission on Form 10-K for the fiscal year ended January 31, 2023 is available without charge upon written request to: Secretary, PagerDuty, Inc., 600 Townsend St., Suite 200, San Francisco, California 94103.


PagerDuty			80			2023 Proxy Statement