Company: ALGN
Filing Date: 2025-03-27
Form Type: PRE 14A
Source: 0001097149-25-000016
Chunk: 12

Company: ALIGN TECHNOLOGY INC
Filing Date: 2025-03-27
Form: PRE 14A
Chunk 12
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2024, we retained all of the key elements of our long-standing, stockholder-supported, performance-focused executive management compensation program, which has historically received strong support in our annual say-on-pay vote. As with prior years, the 2024 program directly tied a substantial portion of the target direct compensation of executive management to at risk compensation with 92% and 82% of the target compensation of our CEO and our other named executive officers (“NEOs”), respectively, being at risk. Base salary remained the only fixed direct compensation component. Highlights of our 2024 executive compensation program are in the table below. For a more detailed understanding of our compensation program see the section “Executive Compensation—Compensation Discussion and Analysis.”

| Aligned Pay with Long-Term Performance                                                                                                                                                                                                                             |     | Cash Incentives Aligned with Company Performance                                                                                                                                                                                             |     | CEO Pay                                                                                                                                                                                                                                                                                                                                        |     | CEO Realizable Pay and Stockholder Alignment                                                                                                                                                                                                                                               |
| The three-year performance-based market stock units (“MSUs”) granted to our NEOs in February 2022 paid out at 72.4% of target in February 2025 based on stock underperformance from 2022 to 2024, all relative to companies comprising the Nasdaq Composite Index. |     | In 2024, our annual cash incentive bonus paid out at 98% of target to our NEOs under our short-term cash incentive bonus program due to performance that fell short of rigorous targets set by the Compensation and Human Capital Committee. |     | Our CEO’s target annual long-term incentive value was reduced by $1 million to $12.5 million in 2024 and has again been reduced by an additional $1 million to $11.5 million in 2025, a reduction of approximately 15% over the two-year period.  Additionally, realizable pay declined from $28.95 million in 2023 to $27.32 million in 2024. |     | Our CEO’s cumulative 3-year realizable total direct compensation (“TDC”) was 77% of his cumulative 3-year target TDC and 49% of his cumulative 3-year reported total compensation, as further discussed in the Realizable Pay section of the Compensation Discussion and Analysis section. |

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Alignment with Stockholder Interest and Company Performance

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#### Corporate Governance
Strong Corporate Governance Policies and Practices

Key Policies

Board Structure and Independence

Role of o