Company: PACB
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001299130-25-000090
Chunk: 78

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 78
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 goals weighted between 5-15%, depending on the level of achievement as determined by our Board of Directors, consisting of achieving certain customer and employee net promoter scores, in addition to any other extraordinary achievements as determined by our Board of Directors.

Up to 150% aggregate achievement under the Original 2024 Bonus Plan was possible depending on the level of achievement as determined by our Board of Directors.

The Compensation Committee and the Board of Directors believed that the goals under the Original 2024 Bonus Plan were appropriate for 2024 given that the Company intended to increase commercial adoption of the Revio and Onso systems and advance the commercial release of two new products, Vega and a cloud-based product known as SMRT Link. Due to certain of the goals relating to our product development portfolios, certain manufacturing and quality initiatives, and workforce changes, being closely tied to the Company’s business strategy or other confidential information of the Company, any additional information otherwise considered material regarding performance goal targets was not provided in order to avoid competitive harm to the Company’s business (and ultimately to the Company’s stockholders) from such disclosures.

Depending on individual performance during 2024, our Compensation Committee retained the discretion to adjust any bonus amounts up or down within the range of 0% to 100% of the amount otherwise payable. In 2024, no bonus amounts were adjusted as a result of individual performance. Consistent with prior years, we established our performance goals to be intentionally challenging such that performance at target would require significant achievements across multiple performance criteria. For example, in 2020, and 2021, achievement versus the corporate objectives under the variable cash incentive program resulted in payouts of 80% and 116% of the target levels, respectively, and in 2023 and 2024, payouts occurred based on 56% and 95% achievement of certain strategic and operational goals, respectively.

| 2025 Proxy Statement |     | 58 |

TABLE OF CONTENTS

While the Compensation Committee and the Board of Directors believed that these goals under the Original 2024 Bonus Plan were rigorous and achievable but otherwise appropriate for 2024 at the time the Original 2024 Bonus Plan was established, in the second quarter of 2024, it became apparent that it was extremely unlikely such goals could be achieved due to, among other reasons, unanticipated results with respect to revenue, customer shipments, and customer adoption of the Revio and Onso products. As a result, and upon the recommendation of the Compensation Committee, in May 202