Company: PRI
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000950170-25-048061
Chunk: 58

Company: Primerica, Inc.
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 58
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. A portion of the incentive awards are equity-based to motivate executives to create long-term stockholder value. Together, cash and equity incentive awards represent the majority of the compensation paid to our named executive officers. The executive compensation program is divided into a short-term cash incentive program and a long-term equity incentive program. Cash incentive targets for fiscal 2024 performance were set by the Compensation Committee in February 2024. In February 2025, the Compensation Committee determined the cash incentive award to each named executive officer based on the achievement of the Company’s previously established fiscal 2024 corporate performance objectives, with an adjustment of up to 20% (upward or downward) based on personal performance. As discussed in the Compensation Committee Message, for fiscal 2024, the Compensation Committee increased the cash incentive award to Mr. Pitts by 20% based on his personal performance. This was the first time the Compensation Committee has elected to use its discretionary authority to make an adjustment based on personal performance. The value of the long-term equity incentive award granted to each named executive officer in February 2024 was based on fixed award values that were set by the Compensation Committee on the grant date. In December 2024, the Compensation Committee granted a special equity award valued at $2,500,000 to Mr. G. Williams in recognition of the Company's and his accomplishments in 2024. For all named executive officers, the annual long-term equity incentive award was granted 50% in the form of RSUs and 50% in the form of PSUs. The value of the PSUs will only be recognized if the Company achieves specified levels of average ROAE and average annual EPS growth over the years 2024 through 2026, with 50% of the PSU payout tied to each metric. Upon payout of the PSUs, the participants also receive any dividends that would have been paid on the earned shares between the grant date and the vesting date if the shares had been outstanding. The Compensation Committee selected two performance metrics for the PSUs that it believes are the strongest indicators of long-term performance. Average ROAE was selected because it incorporates both earnings performance and the effective use of capital, and management believes it is the single measure by which the Company is most assessed by major investors. The use of this metric allows our stockholders to evaluate our financial achievements relative to other organizations. We believe this metric has a significant influence on the value our stockholders place on the Company. Average annual adjusted operating EPS growth was selected because consistent earnings