Company: CSTL
Filing Date: 2025-03-28
Form Type: PRE 14A
Source: 0001447362-25-000050
Chunk: 62

Company: CASTLE BIOSCIENCES INC
Filing Date: 2025-03-28
Form: PRE 14A
Chunk 62
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 with our pay-for-performance philosophy and in response to stockholder feedback, the Compensation Committee decided to shift the timing of the grant of equity awards to our executive officers from the fourth quarter of our fiscal year to the first quarter of our subsequent fiscal year. This new timing will provide us with the benefit of our final, Board-approved budget and our financial results, prior to setting performance goals for the executive officers’ PSUs and to align total equity awards with performance. Therefore, no annual equity awards were granted to our executive officers during fiscal year 2023. We resumed granting annual equity awards in 2024 and we anticipate that our executive officers will continue to receive their annual equity awards in the first quarter of each subsequent fiscal year based on the performance of the previous year.

#### 60Castle Biosciences 2025 Proxy Statement

#### Compensation Discussion and Analysis
Performance-Based Equity Incentive Awards

Based on a combination of stockholder feedback, peer group data and the maturity of the Company for 2024, the Compensation Committee restructured the PSU design to mitigate overlapping metrics between short-term and long-term incentives. Starting in 2024, the PSU performance period was increased from two years to three years. We also added two additional performance metrics: the commercial launch of certain pipeline tests and achieving positive EBITDA by end of 2026. The PSUs will vest as each financial metrics are individually met. The Compensation Committee continued to select revenue as a metric because it believes that as an early-stage commercial company, revenue is a critically important financial measure in understanding our current business performance and assessing our future potential. The Compensation Committee also considered that revenue is also a component of the annual cash incentive bonus plan and determined that given the importance of revenue and that it represents a culmination of our efforts across multiple initiatives, including the effectiveness of our sales and marketing efforts and achieving reimbursement milestones, it was appropriate to also use revenue for the PSU performance metric over a three-year period. We are not disclosing the specific targets or specific actual outcomes of these metrics because we believe it would provide our competitors with insight into our internal confidential strategic operations and planning processes and could cause us competitive harm. We will provide full threshold, target and maximum goals, related payout opportunities, and final performance and pay outcomes at the conclusion of the performance period.

Equity Award Mix

Based on consideration of continued stockholder feedback and the recommendations of the Compensation Committee and Aon, our Board approved the following mix of long-term equity incentives:

The time-based RSUs vest in annual installments over a