Company: CSTL
Filing Date: 2025-03-28
Form Type: PRE 14A
Source: 0001447362-25-000050
Chunk: 60

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-03-28
Form: PRE 14A
Chunk 60
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 |     | 29 | %            |     |  50 | %            |     | 75 | %         |     |  37.5 | %                 |

(2) Actual weighting could have ranged between 0% (for below threshold performance of all components) and 25.0% (for target performance of all components). The threshold performance level for the three components would have resulted in a weighting of 20.0%. The actual outcome was based on objectively determinable information with respect to the published validation reports, specified electronic ordering metrics and specified reimbursement rates. No discretion was applied by the Compensation Committee. We are not disclosing the specific targets or specific actual outcomes of these metrics because we believe it would provide our competitors with insight into our internal confidential strategic operations and planning processes and could cause us competitive harm. The specific targets were set to reflect a significant step-up from the prior year’s targets and are consistent with the Company’s long-term growth strategy. Achieving this level would require not only sustained organic growth but also successful execution of key strategic initiatives. Given the inherent challenges in achieving and maintaining profitability in our industry, the specific target was intentionally set at a level that demands superior execution.

| Milestone                             |     | Percent Range |     | Actual Achieved |    |   |
| Achieve specific validation study     |     | 0% to 10%     |     |                 | 10 | % |
| Electronic ordering milestone         |     | 0% to 10%     |     |                 |  5 | % |
| Achieve specified reimbursement rates |     | 0% to 5%      |     |                 |  5 | % |
|                                       |     |               |     |                 | 20 | % |

The Compensation Committee selected these corporate performance goals and this incentive structure in order to measure a variety of key drivers of Castle’s performance that it expects to contribute to Castle’s long-term growth. The Compensation Committee believes that the revenue metric represents the most important of these metrics due to its importance to our financial results and its use by investors in understanding our business. Revenue also represents a culmination of our efforts across multiple initiatives, including the effectiveness of our sales and marketing efforts and achieving reimbursement milestones. Therefore, the revenue metric received the greatest weight.

The individual performance of the NEOs (other than the CEO) was also certified by the Compensation Committee, after consideration of feedback from the CEO, and was set at 125% for Mr. Stokes, Mr.