Company: ISRG
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001035267-25-000098
Chunk: 43

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 43
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3.

(3) Calculated as the Company’s TSR relative to the TSR of companies within the Peer Group Index. The relative TSR will be determined by ranking the Company and the Peer Group Index companies from highest to lowest according to their respective TSRs. The Company’s threshold, target, and maximum relative TSR performance metrics, based on the average closing trading price during the 20 consecutive trading days beginning on February 26, 2024, and ending on February 19, 2027, as applicable, relative to the Peer Group Index companies, have been set as the 25th, 50th, and greater than or equal to the 75th percentiles, respectively. If the Company’s TSR is negative for the performance period, the achievement factor for the relative TSR component of the PSU award is capped at 100%.

#### PSU Performance
For the 2022 PSU program (granted in 2022), as of February 21, 2025, the performance periods have been completed. Previously, the Company achieved year-over-year da Vinci procedure growth for 2023 versus 2022 of 21.9%, which exceeded the maximum attainment level, resulting in one-third of the 2022 PSUs being attained at the maximum level. In 2024, the Company achieved a two-year compound annual da Vinci procedure growth rate (for 2023 and 2024) versus 2022 of 19.6%, which exceeded the maximum attainment level, resulting in one-third of the 2022 PSUs being attained at the maximum level. Finally, the Company achieved a relative TSR at the 93rd percentile, which exceeded the maximum attainment level of greater than or equal to the 75th percentile, resulting in one-third of the 2022 PSUs being attained at the maximum level. The overall final attainment level for the 2022 PSU program was 125%.

For the 2023 PSU program (granted in 2023), the Company achieved procedure count growth (combined da Vinci and Ion procedure count for the year ended December 31, 2024, less the combined da Vinci and Ion procedure count for the year ended December 31, 2022) of approximately 880,600 procedures, which exceeded the maximum attainment level, resulting in one-third of the 2023 PSUs being attained at the maximum level.

Given the relationship of procedure counts to our annual operating plan and business strategy and because the Company’s performance goals and their specific target levels are highly confidential, we