Company: KEY-PI
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001193125-25-066284
Chunk: 43

Company: KEYCORP /NEW/
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 43
---
 the risk-taking incentives that may be associated with stock options or performance awards.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Premium-Priced Stock Options    |     | 10%        |     | 4-year                 
 annual ratable vesting |     | • Since 2021, stock options have been granted with a 10% premium on the exercise price, requiring greater positive performance of our stock price for an executive to realize value from the award than an ordinary stock option.   • Incentivizes our executive officers to create share price improvement and provide strong shareholder returns, which is driven by our financial performance.   • Option expires no later than 10 years from the date of grant.   • Encourages preservation of long-term stock value.   • Usage of options limited to no more than 10% of each Named Executive Officer’s annual long-term incentive opportunity since 2013.                                                                                                                                                                                                                                                      |

2024 Capital and Earnings Improvement Awards On December 30, 2024, the Compensation Committee granted to each of Key’s NEOs a supplemental Capital and Earnings Improvement Award that will be earned, if at all, based on the achievement of rigorous performance goals tied to Key successfully realizing the value from the Scotiabank strategic minority investment. The investment was not contemplated when the Compensation Committee established goals and targets for the 2024 performance year for our NEOs. In deciding to grant the Capital and Earnings Improvement Awards, the Compensation Committee determined that maximizing long-term shareholder value would be best achieved through awards designed to retain each of Key’s current NEOs and to align their focus on delivering the growth opportunities presented by the investment.

| 36 |

Compensation Discussion and Analysis Key’s executive compensation program is designed to generally avoid the need for supplemental awards, adjustments to outstanding awards, or frequent use of positive discretion by the Compensation Committee. Given the unique nature and significance of the strategic minority investment in Key, the Compensation Committee determined it was appropriate, and in our shareholders’ best interests, to grant the Capital and Earnings Improvement Awards. The awards contain performance hurdles and other restrictions to directly align NEO incentives with our post-investment positioning, including our greater capacity for growth following the investment, and to focus our NEOs on achieving this growth. These awards are not intended to be recurring elements of Key’s executive compensation design. Decision to Grant Capital and Earnings Improvement Awards In August 2024, Key entered into an agreement with Scotiabank, which made a strategic