Company: INSP
Filing Date: 2025-03-18
Form Type: DEF 14A
Source: 0001140361-25-009249
Chunk: 49

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-03-18
Form: DEF 14A
Chunk 49
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, as discussed above, the Organization and Compensation Committee references general and specific industry surveys from other sources. With the assistance of Aon, the Organization and Compensation Committee uses data from the peer group to establish a market reference for each executive position. For fiscal 2024, the Organization and Compensation Committee determined that the appropriate market reference continues to be the market 50th percentile, and that an NEO’s target and actual total direct compensation may be above or below this reference depending on individual factors and performance. We do not formally set total compensation, or any specific element of compensation, at a specific percentile of the peer group for that position. Instead, the market data is used as a reference point to provide information on the range of competitive pay levels and current compensation practices in our industry. In consultation with Aon, the Organization and Compensation Committee most recently added grants of restricted stock units (“RSUs”) to the equity mix commencing in 2024 for the CEO and other NEOs (aside from a sign-on grant of RSUs to Mr. Phillips in 2021) to more closely align our equity mix with peers, maintain market competitiveness, and to further evolve the Company’s executive compensation program with our stage of growth. Stockholder Input on Executive Compensation At last year’s annual meeting, 97% of the votes cast on the 2024 “say-on-pay vote” were voted in favor of the proposal. The Organization and Compensation Committee considered the 2024 say-on-pay vote and believes that the overwhelming support of our stockholders for the 2024 say-on-pay vote proposal indicates that our stockholders are generally supportive of our approach to executive compensation. We are committed to ongoing engagement with our investors on all appropriate matters, including executive compensation and governance. Following the advisory vote at the 2024 annual meeting of stockholders, the Organization and Compensation Committee has considered stockholder input in evaluating the design of our 2025 executive compensation and the compensation decisions for each of the NEOs. III. ELEMENTS OF OUR EXECUTIVE COMPENSATION PROGRAM In order to achieve our objectives, the Organization and Compensation Committee utilizes the components of compensation set forth below. The Organization and Compensation Committee regularly reviews all components of the program in order to verify that each component is aligned with our strategy and ensure that each NEO’s total compensation is consistent with our compensation philosophy. The primary elements of our NEOs’ compensation and the main objectives of each are:

| • | Base Salary. Base salary attracts and retains talented executives, recognizes individual roles and responsibilities, and provides