Company: EQS
Filing Date: 2025-04-23
Form Type: PRE 14A
Source: 0001712543-25-000025
Chunk: 12

Company: EQUUS TOTAL RETURN, INC.
Filing Date: 2025-04-23
Form: PRE 14A
Chunk 12
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 fiscal year 2024 compensation policy for our named executive officers (“NEOs”). Our Compensation
Committee determines the compensation terms for our Chief Executive Officer and, to the extent charged to the Fund on an hourly basis,
the Board determines the fees that may be charged by members of the Board for their services not in connection with their duties as directors.
Our Chief Executive Officer also determines compensation for all other NEOs. This section explains how compensation decisions were made
for our NEOs during the year. The discussion below also addresses the principal elements of our approach to compensation.

Our NEOs are compensated with a view to satisfying
two objectives: (i) compensating the Company’s NEOs appropriately for their contributions to the Company’s growth, profitability
and other goals and objectives; and (ii) linking the interests of the Company’s NEOs to the long-term interests of the Company’s
equity owners. The compensation terms for our NEOs generally recognize both short-term and long-term success but these compensation arrangements
also emphasize rewarding the intermediate and long-term performance of our NEOs, as measured by the Company’s performance and relative
shareholder return.

Historically, most of our compensation arrangements
with our NEOs consisted primarily of two elements: base salary and possible annual cash bonus. In prior years, we have also added equity
incentives for certain of our NEOs. In addition, while our Chief Financial Officer participates in a defined contribution retirement plan,
we have offered similar plans to our other NEOs pursuant to our agreements with them.

We pay base cash compensation to our NEOs, which constitutes
the bulk of their total cash remuneration. While the NEOs’ initial base compensation is determined by an assessment of competitive
market levels, the factors used in determining changes to base compensation include individual performance, changes in role and/or responsibility
and changes in the competitive market environment. The Company may pay an annual cash bonus which results in cash payments to our NEOs.
The amount of the cash bonus is determined by the individual agreements with our NEOs or by our Chief Executive Officer on a discretionary
basis. In the case members of our Board who provide services to the Company not in connection with their duties as directors, the Board
has determined an hourly rate of $300 for such services. We have agreements with our Chief Executive Officer, Chief Financial Officer,
and Secretary and Chief Compliance Officer, the terms of which are summarized beginning on page 19 of this proxy statement.

In determining the structure of our executive compensation
policies