Goosehead Insurance, Inc.

The Compensation Committee determines the compensation of our NEOs. The CEO's and Executive Chairman's compensation is determined solely by the Compensation Committee, in consultation with the independent Compensation Consultant and the Executive Chairman (for CEO compensation). For NEOs other than the CEO, the CEO, in consultation with the Chairman of the Compensation Committee, the Compensation Consultant, and our Executive Chairman, makes compensation recommendations that are then reviewed, analyzed, and approved by the Compensation Committee. None of our NEOs participate in the discussion or determination of their respective compensation.

In making compensation determinations, the Compensation Committee reviews and evaluates many factors, including:

•Goosehead’s performance and growth;

•The individual NEO’s prior year performance with respect to several performance factors;

•Financial measurements such as premium growth, revenue growth, Core Revenue*, net operating income, Adjusted EBITDA*, and trends in those measurements;

•Ability of each NEO to achieve strategic objectives;

•Individual performance and performance as a management team;

•Long-term potential to maintain and enhance value for our shareholders; and

•Market compensation practices for similar positions within related industries.

*Core Revenue and Adjusted EBITDA are non-GAAP financial measures and are defined and discussed in our Annual Report in the section titled "Item 7. Management's discussion and analysis of financial condition and results of operations—Non-GAAP Financial Measures."