Company: ISRG
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001035267-25-000098
Chunk: 100

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 100
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 portion is already well below the cap suggested by the proponent.

We routinely review our executive compensation program for best practices and alignment with the competitive market and, based on the most recent review, we believe that the benefits offered under our Change-in-Control Plan are generally consistent with the severance benefits offered within our peer group.

In addition, our executive compensation program employs approaches that are commonly viewed as best practices. We have a history of reasonable and appropriate severance and executive benefits. To further align

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executives’ incentives with the long-term interests of our stockholders, we do not provide any tax reimbursement payments (including “gross-ups”) on any element of executive compensation, and the change-in-control payments and benefits pursuant to the Company’s Change-in-Control Plan are based on a “double-trigger” arrangement (i.e., they require both a change in control of the Company and a qualifying termination of employment before payments and benefits are paid).

We believe our severance benefits are consistent with our executive compensation philosophy and are fair and reasonable in light of market practices in our industry, the contributions of our executives to our growth and financial performance, and the value we expect to receive from retaining their continued services. In addition, in the context of a change in control, these provisions are designed to incentivize our executive officers to remain with the Company and maximize value for our stockholders.

Due to the forms of compensation embedded in the requested policy, the proposal may restrict the flexibility of our Compensation Committee and discourage the use of “at risk” long-term incentive equity awards, which are a key element of the Company’s executive compensation program.

The Company’s executive compensation program is thoughtfully designed by our Compensation Committee to link pay to performance.

We believe that stockholder interests are best served and protected by providing flexibility to the Compensation Committee, which consists solely of independent directors, who are regularly advised by an independent compensation consultant, as they make decisions based on our corporate compensation philosophies and to support our ability to compete for outstanding talent. To put unnecessary constraints on our Compensation Committee as it exercises its discretion would only limit our ability to attract and retain critical talent, align executives’ interests with those of our stockholders, and otherwise act in the best interest of our stockholders.

A majority of the annual total direct compensation to our executive officers is performance-based and directly tied, through the use of RSUs and PSUs, to the value of our common stock. The Board believes these equity awards are closely aligned with stockholders’ interests, as they promote our executive officers,