Company: INGN
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0000950170-25-045737
Chunk: 63

Company: Inogen Inc
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 63
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-GAAP Adjusted EBITDA of negative $37.8 million in 2023. We define “Adjusted EBITDA” as earnings before interest expense, interest income, provision for incomes taxes, depreciation and amortization, stock-based compensation, acquisition-related expenses, restructuring-related and other charges, impairment charges, and the change in fair value of earnout liability.

Please see Appendix A attached to this proxy statement for a reconciliation of non-GAAP Adjusted EBITDA to net loss, as calculated in accordance with GAAP.

Based on 2024 performance and as further described below, (i) annual bonus plan payouts were made to our senior executive team for 2024 at 200% of target payout levels and (ii) 127% of the second tranche of the performance-based equity awards granted to the NEOs in November 2023 and March 2024 vested. We believe the above-target annual cash incentive plan payout and vesting of performance-based equity awards during 2024 shows the connection between performance and compensation outcomes for our NEOs.

2024 Say-on-Pay Vote and Stockholder Engagement Efforts

Historically, stockholder say-on-pay support for our executive compensation program has been extremely strong — averaging 98% between 2018 and 2022. However, at the annual meeting of stockholders held in June 2023, 71% of the votes cast on our say-on-pay proposal (excluding broker non-votes and abstentions) were cast in favor of the compensation of the NEOs on an advisory basis. In light of this result, and consistent with our commitment to listen and respond to our stockholders, we increased our stockholder outreach and engagement efforts to better understand current perspectives on our executive compensation program. The results at our annual meeting of stockholders held in June 2024 increased to 93% of the votes cast in favor on our say-on-pay proposal of the compensation of the NEOs on an advisory basis.

Overall, our stockholders indicated to us that they continue to be supportive of our executive compensation program design. However, a few common themes emerged from the discussions, placing our focus on strengthening the links between pay and performance. We have taken multiple steps to address the key concerns we heard, as explained in the table below.

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| What We Heard                                                                                                                           | What We Did                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Stockholders would like to see a more diverse use of performance metrics in our incentive plans.                                        | •Our