Company: CSTL
Filing Date: 2025-03-28
Form Type: PRE 14A
Source: 0001447362-25-000050
Chunk: 48

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-03-28
Form: PRE 14A
Chunk 48
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 example, during 2024, we generated total annual revenues of $332.1 million above the target level of $305.0 million as established under our short-term incentive compensation program for 2024. Our revenue goal category results, along with our success with each of our other goal categories resulted in a bonus payout for our CEO of 128.8% of the target bonus opportunity based on corporate performance objectives. Actual bonuses paid to the other NEOs was 128.0% of the target bonus opportunity. See “Annual Performance-Based Cash Bonuses” below for more information.

We are strongly committed to a pay for performance culture which includes using cash incentives to reward in-year execution as well as long-term incentives that increase in value as the stock price improves. For 2024, 51% of our CEO’s total compensation was tied to performance via cash incentives and performance-based equity awards. In addition, we shifted the timing our annual equity awards to provide us the benefit of our final, Board-approved budget and our financial results, prior to setting performance goals for the executive officers Performance-Based Stock Units (“PSUs”) and to align total equity awards with performance. We compete for talent in a highly competitive industry that requires specific expertise to innovate, test and gain approval for our products in a safe manner for patients. Our compensation policies seek to balance near-term execution with long-term performance to ensure appropriate risk taking given the highly regulated industry we operate within.

Our approach to establishing executive compensation is to examine a variety of factors including market data, experience, role, history, internal pay parity, affordability and individual performance. Market-based ranges for each position, and an executive officer's positioning within that range, inform the Compensation Committee's determination of overall compensation within a competitive market range. The material elements of our executive compensation program include:

• Base salary , which provides a stable means of cash compensation designed to provide competitive compensation that reflects the contributions and skill levels of each executive officer;

• Short-term incentive compensation , consisting of our annual cash bonus program where payouts are earned based upon both objective measures (as shown below under “Annual Performance-Based Cash Bonuses”) and a subjective assessment of annual performance, which in both cases is designed to encourage and reward the accomplishment of goals intended to benefit the Company and its stockholders; and

• Long-term incentive compensation , consisting of a mix of stock-based awards designed to reward performance over a period of time and to tie a portion of executive compensation more directly to the creation of long-term stockholder value. Based on consideration of stock