Company: UMBFO
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0001193125-25-054504
Chunk: 45

Company: UMB FINANCIAL CORP
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 45
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 valued as of the grant date, using the fair market value of the underlying stock as represented by the closing price of the Company’s shares on the grant date. Grants of equity awards are generally approved in a manner that satisfies the exemption from Section 16(b) of the Exchange Act. Performance Units:Our Compensation Committee established a performance standard for the Performance Units that is based 50% on the Company’s three-year cumulative core after-taxearnings per share (“ 3-yearEPS”) and 50% on the Company’s average return on tangible common equity excluding the impacts of accumulated other comprehensive income (“ AOCI”) over the three-year performance period (“ Adjusted ROTCE”). The Compensation Committee believes that the use of 3-yearEPS aligns with shareholders to show UMB’s ability to grow profits over time and the use of Adjusted ROTCE demonstrates UMB’s ability to efficiently allocate capital to generate profits. AOCI was excluded from the calculation of Adjusted ROTCE because average common equity can be inflated or deflated depending on unrealized gains or losses in the bond portfolio and results in no actual economic impact to the Company. Removing AOCI keeps the Adjusted ROTCE calculation neutral to volatility from interest rate movements and allows for more focus on core results. The 2024 performance thresholds for the 3-yearEPS and Adjusted ROTCE were established using the budget that was approved by the Board in January 2024. The 2025 and 2026 target amounts were determined using management’s 3-yearforecast. We do not disclose forward-looking goals for our multi-year incentive programs because the Company does not provide forward-looking guidance to our investors with respect to multi-year periods and further because the goals are considered competitively sensitive, confidential information. It has been our practice to disclose multi-year performance goals in full after the close of the applicable performance period. 40

At the end of the performance period, the 3-yearEPS and Adjusted ROTCE for the performance period are determined by the Compensation Committee, after consulting (if appropriate) with the Corporate Audit Committee and making such adjustments for material changes in the number of outstanding shares, non-recurringgains or losses, and other circumstances as the Compensation Committee may determine fair and appropriate. Without limiting the Compensation Committee’s authority or discretion, adjustments to the Company’s GAAP earnings per share may be made for (i) gain or loss on sales of non-earningassets, (ii) gain or loss on the sale or discontinuance of a business, product or service, (