Company: INSP
Filing Date: 2025-03-18
Form Type: DEF 14A
Source: 0001140361-25-009249
Chunk: 56

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-03-18
Form: DEF 14A
Chunk 56
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Us 
         (#) |
| Timothy P. Herbert   |     |      18,458 |
| Randall A. Ban       |     |       6,152 |
| Richard J. Buchholz  |     |       6,152 |
| Bryan K. Phillips    |     |       6,152 |
| Carlton W. Weatherby |     |           — |

Stock Options. In order to focus executives on growth and increasing stockholder value, the Organization and Compensation Committee has used stock options to motivate stock price appreciation over the long term, which deliver value only if the stock price increases. Stock options reward our NEOs for increasing stockholder value over the lengthier term of the option, which we believe is consistent with the longer medical technology development cycle. Furthermore, awards of stock options align with our growth strategy and provide significant leverage if our growth objectives are achieved. They also place a significant portion of compensation at risk if our objectives are not achieved and provide no guaranteed value. RSUs. In 2024, the Organization and Compensation Committee added RSUs to the mix of long-term incentives provided to executives. Like stock options, RSUs reward our NEOs for increasing stockholder value over the long term. RSUs also provide a retention incentive for executives even during periods of stock price volatility. In future years, the Organization and Compensation Committee will continue to evaluate and select the form and mix of long-term incentive compensation (which may include stock options, restricted shares, RSUs, PSUs, or other long-term incentives) provided to our executive officers that it believes best accomplishes the goals discussed above. Equity Acceleration. In December 2024, the Organization and Compensation Committee approved changes to the treatment of equity awards under the Company’s 2018 Plan upon the holder’s death, disability, or retirement as part of the evolution of the Company’s long-term incentive compensation program and to help it attract and retain key talent. Pursuant to these changes, in the event of a holder’s termination due to death or disability, all outstanding unvested stock options and RSUs will accelerate and vest in full and, to the extent such termination occurs after the first twelve months of the performance period applicable to any outstanding and unvested PSUs, a prorated number of PSUs based on target performance will accelerate and vest. In the event of a holder’s qualifying retirement, all outstanding unvested stock options will accelerate and vest, all outstanding unvested RSUs will remain outstanding and vest in

| Insp