Company: BPOPM
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001140361-25-010189
Chunk: 55

Company: POPULAR, INC.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 55
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 his retirement from his position as CEO of the Corporation, effective June 30, 2025 (the “CEO Retirement Date”). In connection with Mr. Alvarez’s voluntary retirement, on February 25, 2025, the Corporation and Mr. Alvarez entered into a service agreement pursuant to which EXECUTIVE AND DIRECTOR COMPENSATION | 57

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Mr. Alvarez will provide consulting services to Popular for a six month period following the CEO Retirement Date to facilitate the transition of the CEO responsibilities to his successor and support other general business initiatives as needed (the “CEO Service Agreement”). Under the CEO Service Agreement, Mr. Alvarez will receive a monthly consulting fee in an amount equal to $47,000 and be permitted to use the Corporation’s office space. Mr. Alvarez will also be subject to certain restrictive covenants, including customary confidentiality covenants, as well as non-competition and non-solicit restrictions. On February 25, 2025, the Committee granted Mr. Alvarez an equity incentive award with a grant date value of $3,390,000 (based on Mr. Alvarez’s target LTI opportunity of 300% of current base salary) upon consideration of the Corporation’s and Mr. Alvarez’ performance during fiscal year 2024 (the “February Equity Award”). The February Equity Award consists entirely of 33,776 shares of restricted stock, based on the closing price of the Corporation’s common stock on the date of grant of February 25, 2025, consistent with previous practice for retiring executives that will vest on the one-year anniversary of the CEO Retirement Date. All other terms and conditions of the February Equity Award are the same as those for the long-term equity incentive award under the Corporation’s compensation plans and programs, as set forth in this Proxy Statement. Pursuant to the February Equity Award, Mr. Alvarez will be subject to non-competition and non-solicitation restrictions for a period of one year following the CEO Retirement Date. The Committee also determined that Mr. Alvarez will be eligible to receive the following incentive compensation based on his service during the 2025 performance year:

| (i) | A prorated equity award upon consideration of the Corporation’s and Mr. Alvarez’ performance during the first six months of 2025 (the “2025 Prorated Equity Award”) as follows: the 2025 Prorated Equity Award will be determined based on Mr. Alvarez’s target opportunity under the long-term equity incentive for 2025 of 300%