Company: CWAN
Filing Date: 2025-03-07
Form Type: 10-K/A
Source: 0001628280-25-011307
Chunk: 20

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K/A
Chunk 20
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 opportunity with PSUs and RSUs, in order to motivate executive officers to achieve multi-year strategic goals and deliver sustained long-term value to stockholders, and to reward them for doing so.

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| Element                                                |     | Description                                                                                                              |     | Rationale                                                                                                                                                                                                   |
| Base Salary                                            |     | Fixed cash compensation.                                                                                                 
 Determined based on each executive officer’s role, individual skills, experience, performance and external market value. |     | Base salaries are intended to provide stable compensation to executive officers, allow us to attract and retain skilled talent and maintain a stable leadership team.                                       |
| Short-Term Incentives: Annual Cash Award Opportunities |     | Variable cash compensation based on the level of achievement of                                                          
 predetermined annual corporate goals.                                                                                    
 Performance metrics include several financial and operating objectives.                                                  |     | Annual cash incentive opportunities are designed to ensure that executive officers are motivated to achieve                                                                                                 
 established annual goals and to reward them for doing so; payout levels are generally determined based on actual financial results and the degree of achievement.                                           |
| Long-Term Incentives: Equity-Based Compensation        |     | Variable equity-based compensation:                                                                                      
 PSUs                                                                                                                     
 RSUs                                                                                                                     |     | Designed to motivate and reward executive officers to achieve strategic goals and objectives and to deliver sustained long-term value to stockholders, as well as to attract and retain executive officers. 
 Links with stockholder value creation; aligns with stockholders.                                                                                                                                            |

For 2024, the Committee and the Board used compensation information regarding the Peer Group and its judgment to establish a total compensation program for each NEO that is a mix of current, short- and long-term incentive compensation, and cash and non-cash compensation. In addition, in setting the elements of compensation, the Committee considered prior compensation paid and amounts realizable from prior stock-based awards, as well as other benefits provided by the Company. For 2024 the Committee also prioritized reducing the Company’s stock based compensation as a percentage of revenue and moving towards an annual grant cadence as the Company’s compensation practices mature.

Consistent with the Committee’s pay-for-performance philosophy, the majority of annual target total compensation is variable, at-risk pay. The Committee considers compensation to be “at-risk” if it is subject to operating performance or if its value depends on our stock price.

Each compensation element is discussed in more detail below and in the 2024 Summary Compensation table and 2024 Grants of Plan