Company: NNN
Filing Date: 2025-03-20
Form Type: DEF 14A
Source: 0000950170-25-042337
Chunk: 29

Company: NNN REIT, INC.
Filing Date: 2025-03-20
Form: DEF 14A
Chunk 29
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 the highlights related to the 2024 compensation of our NEOs who served in their current roles throughout the year;

The Committee approved base salary increases totaling 10.2% and ranging from 3.8% to 19.0% (including phased-in promotional adjustments for Messrs. Adamo and Horn), to bring NEOs' base salaries more in line with peer group 50 th percentile (or "median") base salaries;

The Committee approved annual cash incentive award opportunities for NEOs, varying by position, with target award opportunities ranging from 100.0% to 150.0% of base salary with any earned awards subject to downward adjustment if our leverage (ratio of total liabilities to gross book assets) exceeded 50.0%;

The Committee approved target long-term incentive award opportunities for NEOs ranging from 125.0% to 500.0% of each executive’s base salary. NEO grants were made using a target value mix of (i) performance shares tied to our three-year relative TSR compared to a broad group of REIT comparators through December 31, 2026 (70% weighting), and (ii) service-based restricted stock (30% weighting);

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Based on our Core FFO per share of $3.32 (excluding any impairments and executive retirement costs), which was between the target and maximum performance goals for fiscal year 2024, the Committee approved payment of annual cash incentive compensation for 2024 at 120% of total target award opportunities for each of our NEOs for the financial component;

Based on our TSR for the 3-year period ending December 31, 2024 which ranked at the 68.7 th percentile vs comparator companies in the NAREIT All Equity REIT Index, the Committee approved performance shares awards for the 2022-2024 grant cycle at 174.8% of target with shares vesting January 1, 2025;

The Committee engaged Pearl Meyer as an independent third-party compensation consultant to assist in the development and evaluation of the executive compensation program. Pearl Meyer was not engaged for any non-compensation related services; and

The Committee concluded that our compensation policies and practices do not promote unreasonable risk-taking behavior and are not reasonably likely to have a material adverse effect on the Company.

The Company believes these actions demonstrate the Committee’s commitment to aligning executive pay with performance, stockholder interests and long-term value creation.

2024 Say-on-Pay Voting Results

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