Company: RILYN
Filing Date: 2025-10-22
Form Type: DEF 14A
Source: 0001213900-25-101228
Chunk: 60

Company: B. Riley Financial, Inc.
Filing Date: 2025-10-22
Form: DEF 14A
Chunk 60
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 Board reviews our Operating Adjusted EBITDA on a quarterly basis as a performance measure and in connection with awarding discretionary bonuses to our NEOs in 2024. We define Operating Adjusted EBITDA as Adjusted EBITDA excluding (i) Trading Income (Loss) and Fair Value Adjustments on Loans, (ii) Realized and Unrealized Gains (Losses) on Investments, and (iii) other investment related expenses. During the fourth quarter of 2023, the Company recast its operating metrics to include revenues from fixed income trading. Operating Adjusted EBITDA has been adjusted to include fixed income trading revenue for the periods presented. This performance measure may not have been the most important financial performance measure for prior fiscal years, and we may determine a different financial performance measure to be the most important financial performance measure in future years. (5)Mr. Ahn resigned effective as of June 3, 2025. (6)Mr. Young resigned effective as of September 20, 2024. (7)Mr. Moore was not re -appointedas an executive officer of the Company, but continues to serve as the Co -ChiefExecutive Officer of B. Riley Securities, Inc. effective as of September 18, 2025. Narrative Disclosure to Pay Versus Performance Table Relationship between Financial Performance Measures The line graphs below compare (i) the compensation actually paid to our PEOs and the average of the compensation actually paid to our remaining NEOs, with (ii) our cumulative TSR,(iii) Russell 2000 Financials Industry TSR,(iv) our Net Income (Loss),and (v) our Operating Adjusted EBITDA, in each case, for the fiscal years ended December 31, 2020, 2021, 2022, 2023, and 2024. TSR amounts reported in the graph assume an initial fixed investment of $100, and that all dividends, if any, were reinvested. 40 41 Pay Versus Performance Tabular List The following performance measures represent the most important financial performance measures used by us to link compensation actually paid to our NEOs to performance for the fiscal year ended December 31, 2024: • Operating Adjusted EBITDA • Total Adjusted EBITDA • Total shareholder return 42

DIRECTOR COMPENSATION We use cash and equity -basedcompensation to attract and retain qualified candidates to serve on our Board. In setting director compensation, we consider the significant amount of