Company: PACB
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001299130-25-000090
Chunk: 70

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 70
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 | 51 |

TABLE OF CONTENTS

Highlights of our Executive Compensation Practices

Our executive compensation program is structured to compensate our NEOs in a manner consistent with stockholder interests as well as with competitive and appropriate pay practices for our industry and our competitive environment. It is designed to reward achievement of specific strategic goals that we believe will advance our business strategy and create long-term value for our stockholders. To achieve this, the Compensation Committee uses the following primary elements of compensation:

| Element                     |     | Performance 
 Period      |     | Objective                                                                                                                                                                                           |
| Base Salary                 |     | Annual      |     | •Recognizes an individual’s contribution and performance                                                                                                                                            
 •Rewards for the experience, education and criticality to the business                                                                                                                              
 •Serves as an important retention vehicle                                                                                                                                                           |
| Short-term Cash Incentives  |     | Annual      |     | •Rewards achievement of financial and non-financial goals directly tied to the strategic priorities                                                                                                 
 •In 2024, the cash incentive goals included financial measures, advancement of the research and development portfolio and capabilities, commercial and customer success and other operational goals |
| Annual Equity Awards (RSUs) |     | Long-term   |     | •Supports the achievement of strong stock price growth                                                                                                                                              
 •Aligns the interests of executives and stockholders over time                                                                                                                                      
 •Serves as an important retention and motivation tool with awards vesting over time tied to continued service                                                                                       
 •Time-based RSUs vest in equal installments over two to four years, on each anniversary of the grant date, subject to continued service                                                             |

Governance of Our Compensation Program

Our compensation committee regularly reviews best practices in executive compensation and is committed to maintaining strong governance standards and stockholder-friendly practices. Our key compensation practices include:

| 2025 Proxy Statement |     | 52 |

TABLE OF CONTENTS

|   |     | What We Do                                                                     |     |   |     | What We Avoid                                                                           |
| ü |     | Pay for performance philosophy and culture                                     |     | X |     | Excise tax gross-ups                                                                    |
| ü |     | Majority of pay is variable and linked to corporate and individual performance |     | X |     | Significant perquisites                                                                 |
| ü |     | Compensation recoupment (“clawback”) policy                                    |     | X |     | Guaranteed salary increases                                                             |
| ü |     | Engage an independent compensation consultant                                  |     | X |     | Contracts that guarantee employment                                                     |
| ü