Recent earnings reports and management commentary in 8-Ks have described increased focus on controlling expenses and expanding margins. Can you share the variables and drivers of management incentive compensation and how they align with margin expansion and opex control? Do you anticipate any changes or tweaks in incentive compensation drivers for 2024?

February 5, 2024

In 2023, our company-level annual incentive structure equally weighted adjusted revenue and adjusted EBITDA, a structure that was designed to incentivize profitable growth. This represented an increased emphasis on profitability in the incentive structure compared to 2022 when the financial measures were weighted 67% to adjusted revenue and 33% to adjusted EBITDA. We expect that the equal weighting of revenue and profitability will continue in 2024.

We’d also note that stock ownership is the cornerstone of our executive compensation program. In particular, a significant portion of our CEO’s stock-based compensation and the compensation for the other named executive officers is driven by Total Shareholder Return, which motivates value creation and aligns their compensation with shareholders.

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