Company: NNN
Filing Date: 2025-03-20
Form Type: DEF 14A
Source: 0000950170-25-042337
Chunk: 33

Company: NNN REIT, INC.
Filing Date: 2025-03-20
Form: DEF 14A
Chunk 33
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 of which have investment-grade credit ratings, operating across a variety of property sectors, with a primary focus on the retail sector, recognizing that the Company competes with REITs across all property sectors for capital and executive talent. Relative to the Peer Group, the Company’s net operating income was near the 50thpercentile and equity market capitalization as of December 31, 2024 was between the 25thand 50thpercentile values. In determining 2024 pay opportunities for executive officers, the Committee considered the compensation of our NEOs as compared to the compensation of NEOs of companies in our Peer Group. Pearl Meyer provided the Committee with a detailed analysis of the compensation of our executive officers as compared to the executive officers of companies in our Peer Group, with the overall objective of providing target total pay opportunities comparable to those provided by industry peers, and actual pay that is directionally aligned with performance relative to peers. As of December 31, 2024, our total return to stockholders was between the peer group 25thand 50thpercentiles over one-year, three-year, and five-year periods.

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We believe that our compensation, benchmarked against our Peer Group, provides an appropriate mix of fixed and variable pay, balances short-term operational performance with long-term stockholder value creation, and encourages executive recruitment and retention. The Committee compared base salary and total compensation for our executive officers against the Peer Group, generally focusing on targeting aggregate total pay opportunities at or near 50thpercentile market values. Compared with the Peer Group, 2024 target total direct compensation (sum of base salary plus target annual cash incentive plus target long-term incentives) was below Peer Group 50thpercentile market values for each of our NEOs other than Mr. Habicht (whose target compensation was at the 50thpercentile). It was also within a competitive range (defined as +/- 15%) of Peer Group 50thpercentile values for each of our current NEOs other than Mr. Adamo and Ms. Steffens, both of whom had less than one year of tenure within their current roles at the time of the market pay analysis.

2024 Executive Compensation Components and How They Relate to Our Objectives

For the fiscal year ended December 31, 2024, base salary, annual cash incentives, cash bonus, and long-term equity-based incentives were the principal components of compensation for the NEOs. Executives also receive certain benefits