Company: INGN
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0000950170-25-045737
Chunk: 64

Company: Inogen Inc
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 64
---
 2024 annual incentives were based on revenue (50% weighting) and Adjusted EBITDA (50% weighting).                                                                                                                                                                                                                                                                                                                                                                             
 •Our 2024 performance-based RSUs were measured based on relative Total Shareholder Return (“TSR”).                                                                                                                                                                                                                                                                                                                                                                                 
 •Our 2025 performance-based RSUs will continue to be measured on relative TSR.                                                                                                                                                                                                                                                                                                                                                                                                     |
| Stockholders favor three-year performance measurement periods for long-term incentive awards.                                           | We eliminated annual performance targets and eliminated annual vesting for our performance-based RSUs. Starting in 2024 and continuing into 2025, actual awards earned are based on results measured on a relative basis against the S&P 1000 Health Care Equipment Select Industry Index after the end of a three-year performance period.                                                                                                                                        |
| Shareholders want challenging performance targets and stronger alignment between executive compensation and the stockholder experience. | We set the relative TSR performance required for a target payout at the 60th percentile for the 2024 performance-based RSUs.  We reduced 2024 annual equity grant values by 40% relative to prior year grants in recognition of the significant decline in our stock price and took additional steps to reduce our overall share grant or burn rate.  We set the relative TSR performance required for a target payout at the 75th percentile for the 2025 performance-based RSUs. |

We believe these changes create a stronger incentive structure that continues to incentivize the senior leadership team to execute on strategies that drive our business results and reflects our stockholders’ preferences. We will continue to keep an open dialogue with our stockholders to help ensure that we have a regular input on their perspectives.

2024 Executive Compensation Program

Our executive compensation program is designed to be competitive and balance our goals of attracting, motivating, rewarding, and retaining our executive officers and driving company performance. To align our executive officers’ interests with those of our stockholders, a substantial portion of each executive officer’s target annual total direct compensation opportunity is “at-risk,” meaning the amounts paid to each executive officer will vary based on our Company performance.

In general, we target total cash compensation and other executive compensation levels to be within the median of our peer group and comparable to similarly situated executives. However, the specific competitiveness of any individual executive’s pay will be determined considering factors like the executive’s experience, skills and capabilities, contributions as a member of the executive management team, and contributions to our overall performance. The Compensation Committee also consider the sufficiency of total compensation potential