Company: KEY-PI
Filing Date: 2025-05-07
Form Type: DEFA14A
Source: 0000091576-25-000062
Chunk: 1

Company: KEYCORP /NEW/
Filing Date: 2025-05-07
Form: DEFA14A
Chunk 1
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 will be required to lead Key through a period of significant macroeconomic uncertainty. The unprecedented rapid rise in interest rates in 2022 and fallout from three of the four largest bank failures in U.S. history in the Spring of 2023 had a lasting impact on the banking industry. During this period, our executive leadership team, under the leadership of Chairman and CEO Chris Gorman, took the difficult and necessary steps to pivot our strategy to enhance our balance sheet, liquidity, and capital position to create a simpler, more profitable bank. In our current uncertain economic and geopolitical environment, Key and our shareholders are relying on Key’s current leadership team to deliver long-term value.

• This leadership team executed an innovative $2.8 billion capital raise at a 17% market premium in 2024 and laid the groundwork to deliver sound, profitable growth in the future. The extraordinary strategic minority investment from Scotiabank in 2024 provides Key with more financial stability, an opportunity to accelerate capital and earnings improvement, and bolster its strategic position over the next few years.

• This is the right leadership team to now put the raised capital to work and realize the shareholder value from the Scotiabank investment. Following the Scotiabank investment, the Board determined that additional incentives were necessary to maximize this opportunity for shareholders. We granted the Awards to (1) retain the executive leaders we need to continue to focus on generating and delivering long-term shareholder value, and (2) ensure the executive leadership team is collectively aligned and laser-

focused on creating shareholder value and recognizing the growth opportunities from the Scotiabank investment.

• The Capital & Earnings Improvement Awards are performance-based awards, with rigorous performance hurdles and other restrictions that align with our overall compensation philosophy. The Awards complement the existing executive compensation program. As such, the Committee decided it was important to let existing LTIP awards operate as designed and not apply upward discretion to in-flight programs – as a result, the LTIP award that was granted in 2022 and paid out in 2024 vested at 0%.

• We have no intention of making this type of supplemental award a regular feature of our program, but this type of award was necessary at this critical time for Key.

We engaged in an intentional design process to ensure the Awards would be aligned with long-term shareholder value. As a result :

• The Awards provide our NEOs with the opportunity to earn compensation for delivering on the potential of the strategic minority investment from Scotiabank. No incentive will be earned unless the vesting