Company: NECB
Filing Date: 2025-04-11
Form Type: DEF 14A
Source: 0001104659-25-034190
Chunk: 20

Company: NorthEast Community Bancorp, Inc./MD/
Filing Date: 2025-04-11
Form: DEF 14A
Chunk 20
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 continued employment.                        |
| (3) | Based on the Company’s closing stock price of $24.46 on December 31, 2024.                                  |

14 Short-Term Incentives. Annual Incentive Plan.The Company maintains an annual cash incentive plan which is designed to align the interests of our officers with the overall performance of the Company, including our named executive officers (“2024 Annual Incentive Plan”). Participants in the plan are eligible to earn a target incentive award for a calendar year which is defined as a percentage of the participant’s base salary. Awards for the named executive officers are approved by the Compensation Committee and the Board of Directors. In designing the 2024 Annual Incentive Plan, the Compensation Committee reviewed our 2024 Business Plan approved by our Board of Directors and the key performance measures for the Company and information related to the peer group for the Company and retained an independent compensation consultant to assist it in designing the plan. The 2024 Annual Incentive Plan provides Messrs. Martinek, Collazo, and Hom with a target incentive award opportunity equal to 30%, 25% and 25%, respectively, of their base salaries. In addition to the performance metrics, the 2024 Annual Incentive Plan contains a credit quality modifier as a measure of minimum acceptable credit quality to be used within the plan as a payout modifier. These incentive award opportunities and performance metrics under the 2024 Annual Incentive Plan are in line with the Company’s compensation philosophy of paying market competitive compensation in line with each executive’s roles and responsibilities at the Company and the Bank and aligning pay with performance. The actual incentive awards under the 2024 Annual Incentive Plan were determined in accordance with performance under the following metrics (and the respective weighting for each metric):

| 2024 Performance Measures         |     | Weighting |      |
| Return on Average Assets          |     |           | 30%  |
| Pre-Tax, Pre-Provision Net Income |     |           | 30%  |
| Efficiency Ratio                  |     |           | 20%  |
| Discretionary(1)                  |     |           | 20%  |
| Total                             |     |           | 100% |

| (1) | The discretionary metric is designed to evaluate individual and Company performance not addressed in the 
 other performance metrics.                                                                               |

The following table summarizes the thresholds, targets, and maximum parameters and actual 2024 performance for each of the applicable