Company: ALGN
Filing Date: 2025-03-27
Form Type: PRE 14A
Source: 0001097149-25-000016
Chunk: 48

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-03-27
Form: PRE 14A
Chunk 48
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) was 75% of base salary, an increase from 70% in 2023 to compete more effectively with practices observed in our peer group. Mr. Hogan’s 2024 target award opportunity remained unchanged at 150% of his base salary. In order to appropriately encourage and reward a range of acceptable performance and contributions in 2024, our awards were structured so that the actual payout to a member of executive management could be as low as 0% up to a maximum of 240% of target.

#### Company Multiplier
The Company Multiplier is the same for all members of executive management. It is determined based on pre-established goals under selected financial targets (net revenue and operating income, as noted above). For 2024, the targets approved by the Compensation and Human Capital Committee were established relative to our annual operating plan and the other factors as discussed in “2024 Bonus Plan Financial Targets.”

#### Individual Performance Factor
The Individual Performance Factor (expressed as a percentage ranging from 0% to 200%) reflects our Compensation and Human Capital Committee’s assessment of the specific performance of each member of executive management in light of the achievement of their individual goals that are set at the beginning of each year. There is no specific weight given to any one individual goal or performance criterion. The Committee considers the views of our CEO regarding how well each individual performed, and such assessment is qualitative, not quantitative, in nature. Our CEO does not provide input regarding his own performance. Individual performance that meets expectations yields a 100% multiplier which has no impact on attainment as determined under the above financial multipliers.

#### 2024 Bonus Plan Financial Targets
Our Compensation and Human Capital Committee seeks to motivate executive management to continuously improve financial performance and achieve strategic objectives through a cash incentive (bonus) plan that rewards higher performance with increased incentive opportunities. This variable expense structure helps to reduce our compensation costs in challenging times such as 2022, 2023 and 2024 and reward achievements only when business conditions and results warrant. In determining the design of our targets for our Bonus Plan, we consider our annual operating plan as well as historical performance and revenue and operating profit growth rates at select comparable medical device companies. When establishing the 2024 executive compensation cash bonus targets in February of 2024, the Committee considered our 2023 results, our long-term business strategy and desire to return to historical levels of growth, continuing macroeconomic dynamics, inflation expectations and customer and consumer demand among other factors. To incentivize a return to higher long