Company: CMA
Filing Date: 2025-03-17
Form Type: DEF 14A
Source: 0000028412-25-000135
Chunk: 58

Company: COMERICA INC
Filing Date: 2025-03-17
Form: DEF 14A
Chunk 58
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 the participant’s division and results in or is likely to result in a material impact (financial or reputational) to Comerica.

### Compensation Risk Management
How We Consider Risk When Structuring Incentive Compensation Programs

• Our philosophy. Some risk-taking is an inherent part of operating a business. However, we strive to embed a culture of risk management throughout Comerica. Our compensation programs are designed to encourage risk management and discourage inappropriate risk-taking by utilizing a diverse portfolio of incentive compensation programs and risk balancing mechanisms for our executives and other senior employees that is expected to reward the desired behavior and results.

• Our programs. To appropriately allocate risk, we use different incentives based on job duties. For example, our NEOs and senior officers participate in the MIP. MIP participants generally have broader, Comerica-wide and/or strategic responsibilities. Accordingly, we fund MIP awards primarily based on corporate performance. Other employees participate in incentive plans designed to support the business objectives of the line of business in which they reside; there, we use measures such as financial results and customer satisfaction.

How We Identify Potential Risks Arising From Incentive Compensation

• Management analysis. We regularly and thoroughly analyze our incentive compensation programs and the risks in their design and implementation. We craft policies and practices to manage those risks. Among other things, we consider design features that could increase risk, if not for the presence of mitigating factors, such as uncapped sales commissions, significant maximum payouts, and the absence of links to corporate performance or business line results. Our plans have links to corporate or business line results; are either subject to the recoupment policy or conditioned on the participant not taking risks that materially adversely impact Comerica; and are subject to procedures ensuring awards are reviewed for appropriateness before distribution. Employees in control functions, such as audit, compliance, and risk management, participate in corporate-wide programs and not in programs that reward performance of particular Comerica businesses. We also back-test on a biennial or more frequent basis to determine whether the plans are working as intended and align with our pay-for-performance philosophy, and as an additional check to identify attributes of our incentive plans which may promote an incentive excessive risk. In 2024, we found our plan designs and outcomes were aligned with Comerica’s risk appetite and that our governance practices were sound, and presented them to the Committee.

• Committee review. The Committee regularly reviews the structure and components of our compensation arrangements, the material potential sources of risk in our business lines and