CASTLE BIOSCIENCES INC

To assess the competitiveness of our executive compensation program and compensation levels, our Compensation Committee, with the assistance of AON, examines the competitive compensation data for senior executives of our peer companies, including total compensation and each element of compensation. The Compensation Committee uses a peer group to reference recent market data and understand the marketplace. However, the Compensation Committee also recognizes the importance of considering additional factors when making compensation decisions, including individual performance, experience, history and scope of responsibility, current market conditions and the specific needs of the business at critical points in time. The Compensation Committee uses its best business judgment in setting executive compensation and uses the market data provided by AON as a reference point, rather than in a formulaic manner. The Compensation Committee conducts an annual assessment of the peer group to ensure that it reflects Castle’s most current financial and sector-specific standing.