Company: DLX
Filing Date: 2025-03-10
Form Type: DEF 14A
Source: 0000027996-25-000107
Chunk: 34

Company: DELUXE CORP
Filing Date: 2025-03-10
Form: DEF 14A
Chunk 34
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 Ranges
Financial Targets

In setting 2024 AIP financial targets, the Committee considered our Annual Operating Plan (AOP), our prior year results, and whether any additional adjustments were appropriate. Consistent with this approach, the Committee considered divestitures and acquisitions to determine if the year-over-year comparisons are fair and to ensure that NEOs are not rewarded for additional revenue resulting from an acquisition or penalized for reduced revenue due to a divestiture. Because we divested our web hosting and payroll businesses in 2023, our 2024 AIP financial targets were reviewed both in light of actual 2023 reported results and adjusted results after excluding results related to the divested businesses. In our disclosure below, we refer to these as comparable adjusted results. The Committee also

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reviewed targets against feedback received from our shareholders and made modifications to the revenue target, all as described in the table below:

| Process and Considerations in Setting 2024 AIP Financial Targets |     |                                                                                                                                                                                                                 |     |                                                                                                                                                                                       |
| Primary inputs for targets set in first quarter of 2024          |     | AOP                                                                                                                                                                                                             |     | •Management develops and the board reviews and approves the AOP to ensure it is challenging, yet achievable, and consistent with the company's long-term strategy and financial goals 
 •The Committee uses the AOP as a foundational element to set target goals for revenue, EBITDA and EPS                                                                                 |
|                                                                  |     | Prior Year Actual Results                                                                                                                                                                                       |     | •Considered as a benchmark to ensure targets are realistic, challenging, and require growth for our ongoing (non-divested) business                                                   |
|                                                                  |     | Divestitures of Businesses                                                                                                                                                                                      |     | •The Committee considers business acquisitions and divestitures in setting AIP targets to maintain the integrity and fairness of the AIP                                              
 •Targets require growth in the ongoing business (i.e., the respective target must exceed the prior year actuals after adjusting for divestitures)                                     |
| Shareholder feedback                                             |     | •Shareholders expressed a desire to ensure targets exceeded prior year reported results                                                                                                                         
 •Shareholders requested detailed explanation of any adjustments made to reported results                                                                                                                        |     |                                                                                                                                                                                       |
| Target modifications made in response to shareholder feedback    |     | •In response to shareholder feedback and during the second quarter of 2024, the Committee re-evaluated each of the 2024 targets that were set during the first quarter based