Company: ETY
Filing Date: 2025-05-01
Form Type: 424B3
Source: 0001076598-25-000103
Chunk: 10

Company: Eaton Vance Tax-Managed Diversified Equity Income Fund
Filing Date: 2025-05-01
Form: 424B3
Chunk 10
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 to address accounting irregularities or financial misstatements
over consecutive years.

Directors should dedicate adequate time to their role and consider any
other existing commitments alongside their board and/or committee memberships. We may look at meeting attendance to determine whether
directors have adequate time for their responsibilities.

_______________

For example, we may withhold support for a director
we believe is responsible for a company’s involvement/remediation of breach of global conventions such as UN Global Compact Principles
on Human Rights, Labor Standards, Environment and Business Malpractice.

B. Auditors

Investors rely on auditors to attest to the integrity of a company’s
financial statements, without which the business could not be properly evaluated. It is essential that auditors be independent, accurate,
fair in the fees charged, and not subject to conflicts of interest. We therefore expect auditors to be independent in order to provide
an objective opinion and assurance. We may consider non-audit related business, length of service and any other relevant context when
assessing auditor independence. We generally expect non-audit related fees to be less than 50% of the total fee.

C. Executive & Director Compensation

Properly structured compensation is essential to attracting and retaining
effective corporate management. Poorly structured compensation plans can create perverse incentives. We expect compensations plans to
be reasonable, and appropriately incentivize executives to make risk-reward decisions that align with the business strategy and goals,
and long-term shareholder value creation. Compensation plans should also build in retention mechanisms for high performing executives.
We generally expect compensation plan payouts to align with performance and long-term value creation.

We expect director compensation to follow market best practice and be
aligned with long-term shareholder interests. For executives and directors who gain shares through equity compensation plans, we generally
expect reasonable guidelines and holding requirements. Typically, stock options issued to executives should be priced at fair market value
on the date of the grant and any re-pricing should not incur a significant cost to shareholders.

We generally expect employee ownership, retirement and severance plans
to be designed in a manner that does not disadvantage shareholders. These plans should not be excessively dilutive or incur a high cost.
We generally expect discounted employee stock purchase plans to be broad-based and include non-executive employees. Discount rates should
be in line with market best practice and not excessive.

For compensation plans with performance metrics, in instances where
performance milestones are not met, we may expect reasonable claw back provisions for executive or director compensation related to these
missed