Company: CSTL
Filing Date: 2025-03-28
Form Type: PRE 14A
Source: 0001447362-25-000050
Chunk: 51

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-03-28
Form: PRE 14A
Chunk 51
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 feedback and the outcomes of future Say-on-Pay votes when evaluating our executive compensation programs and practices and making compensation decisions for our executive officers.

#### 50Castle Biosciences 2025 Proxy Statement

#### Compensation Discussion and Analysis

#### Stockholder Feedback and Board Responsiveness
| What We Heard                                               |     | How We Responded                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Short-Term Performance Hurdles                              
 in Long-Term Incentives                                     |     | Based on stockholder feedback we moved away from a two-year performance period (used in our 2022 performance-based equity grants) to a three-year performance period for performance-based equity grants made in 2024. 50% of the CEO’s target long term annual incentives for 2024 remain performance-based and tied to pre-defined objectives set by the Board to align with the strategic plan. See “Performance-Based Equity Incentive Awards” on page60.                                                                                                                          |
| Overlapping Metrics in Short- and Long-Term Incentives      |     | To mitigate the perceived issue of overlapping metrics, for 2024 annual equity grants, we added two new three-year performance metrics that are separate from the metrics under our short-term incentive program, commercial pipeline testing goals and achieving positive EBITDA by the end of 2026. See “Performance-Based Equity Incentive Awards” on page60.                                                                                                                                                                                                                       |
| Additional Transparency in                                  
 Disclosure of Equity Award                                  
 Performance Goals                                           |     | Given the use of internal financial and pipeline goals over a multi-year period, and that we do not issue forward looking guidance for such metrics, we commit to provide full threshold, target and maximum goals, related payout opportunities, and final performance and pay outcomes at the conclusion of the performance period, in accordance with typical market practice and SEC rules. It is our intention to provide transparent disclosure at the appropriate time. See “Elements of Our Executive Compensation Program” on page51.                                         |
| Desire for CEO pay to align with Company Performance & Size |     | In response to the concerns raised, following the 2023 annual stockholder meeting, the Compensation Committee re-examined the peer group and made changes to better align with the Company’s revenue and market capitalization; this updated peer group impacted the approach to setting target executive pay quantum, mix and overall design for 2024. See “Peer Group Selections and Market Analysis” on page55.                                                                                                                                                                     
 We moved the annual equity grant to the first quarter, following the close of the fiscal year