2021 Owens Corning Sustainability Report | Expanding Our Social Handprint | Employee Experience | 211 SUMMARY OF COMPENSATION AND BENEFITS Owens Corning believes that employees should be compensated in ways that are performance-driven, market- competitive, and equitable. Through base and variable pay, we seek to reward both individual and collective contributions to our business’s success. Base salaries are determined by the following factors: ■ Job responsibility. ■ Benchmarking data on market competitiveness. ■ Individual competencies. ■ Job performance. The design, application, and administration of our global compensation programs adhere to a consistent philosophy, one that ensures equitable treatment for employees, regardless of gender, age, or ethnicity. Base pay rates are determined by job responsibility level and are targeted at the market median (the 50th percentile of comparable companies with whom Owens Corning competes for talent). Base pay rates are reviewed and updated annually, based on the job performed and the local market wages for similar skills, to ensure we are providing fair wages. Our compensation team has performed a thorough analysis of our U.S. population and all minimum wage increases that are current and approved, but not yet enacted. We are currently compensating our people at or above all established minimum wage requirements. For Owens Corning, minimum wages are generally not relevant, as most entry-level Owens Corning positions require a higher level of skills or knowledge than jobs at which the minimum wage would apply. Pay Equity Owens Corning believes its success is enhanced by an inclusive and diverse workforce, which adds value to the business by fostering an environment that leads to high engagement and innovative thinking in the workplace. Owens Corning operates programs that foster gender and ethnic diversity as well as equality within its workforce. The company has implemented a robust pay equity gap review, which includes multiple processes and controls that are executed during its hiring and annual merit review. This program is designed to prevent pay equity gaps from occurring. We ensure the success of this review by performing a biennial pay equity review with the assistance of a third-party vendor. The third-party review includes a robust, statistical analysis of pay equity across its global salaried workforce. Consistent with its commitment to “equal pay for equal work,” the company remediates all identified and substantiated pay gaps through pay increases. The review in 2021 demonstrated that less than 1.4% of its 5,700 global salaried employees required remediation, at a total cost of less than .02% of annual global salaries. Further, the company has implemented processes and policies to avoid inheriting unequal pay bias of prior employers. Variable Incentive Plan In addition to base pay, most primary employees are eligible to participate in Owens Corning’s Variable Incentive Plan (VIP) at the plant level, which is dependent on individual and plant results. Through this compensation program, above- average total cash compensation is provided when a location performs well, leading to a competitive structure overall. Employees’ compensation is proportionate to their role’s impact and the contributions the individual makes to the company, which ensures fairness. Corporate Incentive Plan Owens Corning’s compensation philosophy is to use all elements of compensation effectively, aligning employees with the goals of the company and its businesses and encouraging our employees to meet and exceed desired performance objectives. Most staff employees are eligible to receive additional cash incentives through the Corporate Incentive Plan (CIP) based on the company’s year-end results and their individual performance. The corporate component is determined through EBIT targets and a consolidated corporate target, while the individual component is based on each employee’s annual performance. Long-Term Incentives Our long-term incentive program (LTI) is an equity-based program that uses a combination of Restricted Stock Units and Performance Share Units. This program provides an opportunity to retain key talent and invest in our employees’ future, provide opportunities to build wealth, and recognize extraordinary performance. Owens Corning offers these incentives to senior management and a very select group of employees below the director level. Vice Presidents receive a mix of Restricted Stock Units and Performance Share Units tied to the enterprise objectives of free cash flow conversion, return on capital, and total shareholder return. Directors and below receive Restricted Stock Units.