Company: MGRE
Filing Date: 2025-04-11
Form Type: DEF 14A
Source: 0001004434-25-000021
Chunk: 40

Company: AFFILIATED MANAGERS GROUP, INC.
Filing Date: 2025-04-11
Form: DEF 14A
Chunk 40
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 and director compensation of

the peer companies set forth in this “Compensation Discussion and Analysis” section (our “Peer Group”) and potential structures for

incentive awards. The Committee considers the components of the compensation program (including the mix of compensation

elements, market-level compensation, and our compensation governance practices) in analyzing the extent to which the program

furthers the Committee’s objectives of aligning compensation with shareholder value creation while retaining and motivating our

executives. As discussed above, the Committee also seeks feedback from stockholders and proxy advisory firms in an ongoing

engagement cycle, and takes that feedback into account in both enhancing the compensation program design, as well as in the

Committee’s final compensation determinations for the year.

For the applicable performance year, through a formulaic process based on objective performance metrics, the Compensation

Committee considers the Company’s accomplishments during the year and over the long term, on both an absolute basis and

relative to our Peer Group, and considers the individual roles of our executive officers, to establish the amount of annual cash

bonus and long-term equity incentive awards (“Annual Incentive Compensation”) for each executive. The following provides an

overview of the outcome of the incentive compensation determination process for our President and Chief Executive Officer and

our other named executive officers.

The Compensation Committee sets Target Total Payout amounts for each named executive officer, including for performance

year 2024 a target at the median of the CEO compensation of the Peer Group, for the Chief Executive Officer. The result of the

quantitative scorecard assessment drives the incentive award payout to each named executive officer, including quantum (for the

Chief Executive Officer in 2024, above or below the Peer Group median) and mix across short- and long-term incentive awards.

The incentive determination process and ultimate payout structure reflect the Committee’s executive compensation program

philosophy of closely aligning management incentives with business performance and long-term stockholder interests. Variable

performance-based incentive awards account for the substantial majority of Annual Incentive Compensation for each executive –

the majority of Annual Incentive Compensation is in the form of equity incentive awards (beginning in performance year 2024, the

delivery of 75% of the grant value of these equity incentive awards is tied to the achievement of rigorous pre-established

performance targets, compared with 60% in prior years).

Having calculated the results of the Performance Assessment scorecard, the Committee reviewed the output from the

weighted average score applied to the target Chief Executive