Company: MGRE
Filing Date: 2025-04-11
Form Type: DEF 14A
Source: 0001004434-25-000021
Chunk: 45

Company: AFFILIATED MANAGERS GROUP, INC.
Filing Date: 2025-04-11
Form: DEF 14A
Chunk 45
---
 at AMG tied to the long-termvalue creation of the business, measuring AMG profit net ofinterest expense, taxes, and non-cash depreciationamortization — indicates the condition of AMG’s Affiliateearnings on an ownership-weighted basis, the efficacy ofcapital reinvested for growth, and management of corporateexpenses•In performance year 2024, this metric, which includesannual performance fee earnings, replaced AnnualManagement Fee EBITDA, to better reflect the growingcontribution of performance fee earnings in our business |     | •Annual growth in Adjusted EBITDA is influenced by thefollowing primary factors:1.Change in market asset levels for the year (timeweighted), estimated based on publicly availablemarket composite data (“Beta”);2.Relative investment performance by AMG’sAffiliates;3.Asset-based fee rates and annual performancefee earnings generation;4.Annual expenses incurred by AMG and certainof our Affiliates;5.AMG’s ownership levels across our Affiliategroup; and6.Adjusted EBITDA contributed by new Affiliateinvestments•For performance year 2024, the Committee adopted atarget of +3% growth relative to reported AdjustedEBITDA for 2023•We believe that the resulting target is a rigorous metricgiven that the year-over-year change in AdjustedEBITDA is reflective of management’s executionagainst its strategy (described above) and regardlessof the impact of Beta on AMG’s business across arange of reasonable market outcome scenarios•Beginning in 2023, a minimum threshold was includedin measuring this metric, set at 50% of the target, andbelow which the metric would result in 0%achievement |
| AnnualEconomicEarningsper Share(EEPS)                                                                        |     | •Most comprehensive measure of overall earningscontribution on a per-unit basis; please refer to AMG’s mostrecent Annual Report on Form 10-K for a full definition•Incorporates aggregate condition of Affiliates, corporateexpenses, capital structure, tax exposure, and the fullweight of capital allocation decisions (deployment of capitalinto growth investments and share repurchases)                                                                                                                                                                             |     | •EEPS is a key non-GAAP performance metric•Annual growth in EEPS is influenced by similarprincipal factors that affect Adjusted EBITDA (see #s1-6 above) and also includes the impact of taxes,interest expense, and share repurchases•For performance year 2024, the Committee adopted atarget