Company: ALGN
Filing Date: 2025-03-27
Form Type: PRE 14A
Source: 0001097149-25-000016
Chunk: 49

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-03-27
Form: PRE 14A
Chunk 49
---
-term growth in 2024, the Committee

<div align='center'>66</div>

set rigorous target goals and objectives intended to reward executive management for achieving notable growth over 2023’s actual results relative to our industry, notwithstanding the continued challenging business environment. For 2024, the Committee established at target Bonus Plan funding on revenues between $4,040 million and $4,140 million and operating income between $665 million and $709 million.

* Actual Operating Income results for 2024 were adjusted pursuant to the Bonus Plan as described above and below.

#### 2024 Bonus Plan Attainment
In 2024, we achieved net revenue of $4.0 billion, exceeding our 2023 results by $137 million. Our operating income was down in 2024 to $608 million compared to $643 million in 2023, based in part from $73 million in extraordinary and non-recurring expenses associated with litigation settlements, restructuring costs and settlements of value added tax claims from prior years. Adjusting for these expenses, our adjusted operating income was $681 million, which represents a $38 million improvement over the prior year. Our net revenue and adjusted operating income performance resulted in the payout levels shown below:

The table below shows the net revenue and operating income metrics used in 2024, our level of performance with respect to these metrics and resulting payout achieved.

| Measure/Weight           |     | Why do we use this measure?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |     | Threshold (2024)(in millions) |     | Target (2024)   
 (in millions)   |     | Achievement (2024) 
      (in millions) |     | Impact on  
 Company    
 Multiplier |
| Revenues(1)(60%)         |     | Improvement in this measure aligns with our overall growth strategy                                                                                                                                                                                                                                                                                                                                                                                                                                           |     |                        $3,862 |     | $4,040 - $4,140 |     |             $3,999 |     | 96.6.%(1)  |
| Operating income(1)(40%) |     | Directly links incentive payments to profitability and provides incentives to employees (including management) to share in our profitability. Because profitability encompasses both revenues and expense management, our Compensation and Human Capital Committee believes this measure encourages a balanced, holistic approach to managing our business. As a pre-tax metric, operating income also focuses on core operations apart from tax impacts which management cannot control or reliably predict. |     |                          $643 |