Company: AFGC
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001140361-25-012231
Chunk: 50

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 50
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 generally for large public companies, and conducted discussions with the other independent Directors, the Co-CEOs and other senior executives. The Committee ultimately selected as metrics key financial measures that management utilizes internally and emphasizes externally in communications (e.g., earnings releases, earnings calls, securities filings and investor meetings) as critical drivers of its business performance and shareholder value creation. As such, the Committee adopted three metrics for the 2024 Annual Plan:

| • | Operating EPS, which was retained from prior years as an Annual Bonus Plan metric; |

| • | Annual return on equity(“Annual ROE”); and, |

| • | Relative annual growth in book value per share(“GBVPS”). |

One topic the Compensation Committee also evaluated and discussed with Pay Governance were the advantages and disadvantages of including two new metrics in the Annual Bonus Plan—annual ROE and relative annual GBVPS—that were similar to, though different from, measures utilized in the Senior Executive LTIC. Among the factors considered by the Committee were the difference in performance measurement periods (one year vs. three years); the different composition of peer companies for relative measurement of GBVPS performance (14 companies in the Compensation Peer Group and 23 companies in the Senior Executive LTIC comparison group); the difference in relative weighting of the metrics between the two plans (three near-equally weighted metrics vs. two equally weighted metrics); target, maximum and threshold hurdles levels that are not aligned between the two plans; and the different composition of participants in each plan (a majority of the NEOs are not participants in the Senior Executive LTIC). The Committee also considered that the different performance measurement periods between the Annual Bonus Plan and the Senior Executive LTIC have the potential to create some constructive, natural tension when senior management is considering alternatives for key strategic and business initiatives, as certain decisions may positively impact metrics under one plan’s period while potentially creating offsetting results in the other plan period. Accordingly, notwithstanding some similarity, the Committee determined to include annual ROE and relative annual GBVPS from among the many alternatives they considered because of the metrics’ criticality to AFG’s success and their heightened importance to investors. All of the NEOs other than Mr. Thompson participate in the Annual Bonus Plan. Awards to the Co-CEOs and Mr. Berding under the 2024 Annual Bonus Plan were weighted as follows: Operating EPS: 34%; annual ROE: 33%; and relative annual GBVPS: 33%. These three metrics constituted 60% of the annual award