Company: INSP
Filing Date: 2025-03-18
Form Type: DEF 14A
Source: 0001140361-25-009249
Chunk: 52

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-03-18
Form: DEF 14A
Chunk 52
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 Organization and Compensation Committee approved an increase in Mr. Weatherby’s target incentive opportunity from 60% to 70%. |

| Inspire Medical Systems, Inc. |     | 42 |     | 2025 Proxy Statement |

TABLE OF CONTENTS

| EXECUTIVE COMPENSATION |

Performance Measures. Under the MIP, the amount of the payout, if any, is based upon the achievement of financial metrics (weighted 65%) and strategic metrics (weighted 35%). Specifically, the following performance metrics were used to determine payouts under the fiscal 2024 MIP:

| i. | Global Revenue: the Organization and Compensation Committee emphasized revenue growth as the highest priority, given the Company’s stage of development and market opportunity. |

| ii. | Adjusted Operating Income: the Organization and Compensation Committee selected this metric to focus management on improving profitability and managing expenses. |

| iii. | Global Insurance Reimbursement Approvals: the Organization and Compensation Committee included this metric because securing reimbursement from payors is critical to the Company’s strategy and financial performance. |

| iv. | Specified Quality, Regulatory, Product Development, and Operations Metrics: the Organization and Compensation Committee used these metrics to emphasize continuing product development and commercial launch, regulatory approvals, product quality, and operational excellence as key components of the Company’s overall strategy. |

Payout Opportunities . At the beginning of the fiscal year, the Organization and Compensation Committee approved the target and performance range for each performance metric. The targets for each performance metric are based on the Board-approved annual operating plan. The targets represented substantial increases from the prior year actual performance. For example, the revenue target represented an approximately 31% increase from prior year actual revenue, the adjusted operating income target represented an approximately 230% increase from prior year actual adjusted operating income, and the global insurance reimbursement approvals target represented an approximately 31% increase from the prior year level. The performance range for each metric defines threshold and above-target levels of performance. The threshold payout for each of the performance metrics is 75% of the target incentive opportunity. The maximum payout for the revenue metric, operating income metric, reimbursement approval metric, and the operations metric is 200% of the target incentive opportunity for each of those metrics. The maximum payout for the quality, regulatory, and product development metrics is 135% of the target incentive opportunity for those metrics as a group. Where applicable, and for performance that exceeds the above-target performance level, the resulting payout percentage is determined on a linear interpolation basis up to the maximum