Company: FFWM
Filing Date: 2025-04-17
Form Type: DEF 14A
Source: 0001104659-25-036041
Chunk: 87

Company: First Foundation Inc.
Filing Date: 2025-04-17
Form: DEF 14A
Chunk 87
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 of those two amounts: • The 2024 annual total compensation of the median employee of the Company (other than our CEO) was $90,000; • The 2024 annualized total compensation of Mr. Shafer was $4,954,040, inclusive of the grant of RSUs awarded in connection with his appointment as CEO; and • For 2024, the ratio of the annualized total compensation of Mr. Shafer to the median annual total compensation of all our employees was 55:1. Our CEO-to-median employee pay ratio is calculated in accordance with Item 402(u) of Regulation S-K promulgated by the SEC. The rules for determining the pay ratio based on the median employee’s annual total compensation allow companies to utilize different methodologies that reflect their employment and compensation practices. As such, the pay ratio reported by other companies may not be comparable to our pay ratio. To determine the median employee, we used the following methodology: • Examined actual 2024 earnings from payroll records; • Excluded employees who separated in 2024 and included employees who were hired in 2024, such that only active employees at December 31, 2024 were considered; and • Excluded the CEO. The results were sorted from highest total compensation to lowest total compensation to determine the median employee. After identifying the median employee, the Company calculated the 2024 annual total compensation for our median employee and the 2024 annualized total compensation for our CEO using the same methodology that the Company used to calculate the CEO’s annual total compensation for the “Summary Compensation Table” in this proxy statement and as further described below as applicable: • Salary is equal to amounts earned in 2024; 54

TABLE OF CONTENTS • Bonus is equal to amount earned for 2024 and paid in the first quarter of 2025; • Restricted stock units awards were based on the value of the portion of bonus which could have been paid out in RSUs, as determined as of the date the bonus entitlement was first created; and • Other compensation, which consists of medical, dental and life insurance benefits and our 401k match. The CEO’s total annualized compensation is divided by the total compensation of the median employee to determine the CEO pay ratio. Since two individuals served as our CEO during 2024, to determine the CEO’s compensation, we used the total annualized compensation of our current CEO, Mr. Shafer. Mr. Shafer assumed the role of CEO on November 21,