Company: INSP
Filing Date: 2025-03-18
Form Type: DEF 14A
Source: 0001140361-25-009249
Chunk: 54

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-03-18
Form: DEF 14A
Chunk 54
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 70%         |     |     350,000 |     | 98.4%       |     |    344,400 |

| (1) | Amounts shown are calculated by multiplying each executive’s base salary in 2024 by their target incentive opportunity and the MIP achievement percentage. |

Phillips Performance Bonus. In December 2024, the Organization and Compensation Committee approved a one-time, discretionary cash bonus in the amount of $50,000 for Mr. Phillips. The committee approved the award to recognize Mr. Phillips’ extraordinary contributions in 2024 leading the organization’s legal and compliance functions to successfully meet evolving and complex legal and compliance challenges amidst rapid business and organizational growth. The actual cash incentives earned by each NEO for fiscal year 2024 are set forth below in the Summary Compensation Table under the column entitled “Bonus” (for Mr. Phillips’ discretionary bonus amount) and “Non-Equity Incentive Plan Compensation” (for amounts paid under the MIP). LONG-TERM INCENTIVES As described above, the third and largest primary component of our executive compensation program is long-term equity incentives. The Organization and Compensation Committee designed this long-term incentive opportunity to motivate our executive officers to achieve multi-year strategic goals and to deliver sustained, long-term value to stockholders. Our long-term incentives create a strong link between payouts and performance and align our executive officers’ interests with the interests of our stockholders. Long-term equity incentives promote retention, as executive officers will only receive value if they remain employed by us over the required term, and they foster an ownership culture among our executive officers by making executive officers stockholders with a personal stake in the value they intend to create. The Organization and Compensation Committee intends to make grants of long-term incentive awards annually. Special, one-time awards are used in limited circumstances, including, as may be necessary to attract, retain, and motivate experienced and well-qualified executive officers, and as recognition of an increase in the scope of an executive’s responsibilities or major accomplishments. Equity Vehicles and Mix. Consistent with the market practice of similar, newly-public companies in our industry, our long-term incentive compensation historically consisted solely of stock options. Beginning with fiscal 2022, the Organization and Compensation Committee approved a change in the mix of long-term incentive compensation to be granted to executives to include PSUs. In 2024, the Organization and Compensation Committee further evolved the Company’s long-term incentive compensation program by adding grants of RSUs to the total equity mix for executive officers.