Company: ONBPP
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001558370-25-004483
Chunk: 55

Company: OLD NATIONAL BANCORP /IN/
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 55
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 selected adjusted EPS as the sole metric for our 2024 AICP to focus management’s efforts on achieving short-term financial performance of the Company. In February 2024, the Compensation Committee determined that adjusted EPS of $1.75 would be required for payout at target, or 100%, under our AICP. The target EPS performance goal of $1.75 for our 2024 AICP was based on a projection for the Company’s EPS performance in 2024 as compared to the projected 2024 EPS performance of the companies in the KRX Index and after taking into consideration our Board-approved 2024 operating plan and budget. The variance between our 2024 AICP target performance goal of adjusted EPS of $1.75 and the Company’s adjusted EPS of $2.05 in 2023 (which constituted record EPS performance of the Company) was driven primarily by the banking industry’s lower interest rate environment in 2024 as compared to 2023 and the corresponding impact of this lower interest rate environment on the Company’s 2024 net interest income. The threshold, target and maximum performance goals for the adjusted EPS metric under our AICP for 2024 are shown in the table below.

| ​                           |         ​ |      ​ |       ​ |
| ​                           | Threshold | Target | Maximum |
| Adjusted Earnings Per Share |     $1.62 |  $1.75 |   $2.06 |
| Payout Level                |       50% |   100% |    200% |

Determination of 2024 AICP Payout .*The Company’s adjusted EPS for 2024 was $1.86. This above-target performance was driven primarily by strong loan, core deposit and fee income growth, strong credit performance and disciplined expense management. However, for purposes of determining the payout under our AICP for 2024, the Compensation Committee reduced adjusted EPS to $1.83 to reflect the impact of a one-time, non-cash charge to earnings that resulted from the Company’s distribution in 2024 to participants in the Company’s 401(k) Plan of the excess pension plan assets attributed to a frozen pension plan that was overfunded at the time the plan was terminated. Under applicable accounting requirements, this distribution of excess plan assets resulted in a one-time, non-cash charge to the Company’s EPS equal to $0.03. Based on the payout curve established by the Compensation Committee at the beginning of