Company: RNST
Filing Date: 2025-02-26
Form Type: PRE 14A
Source: 0000715072-25-000057
Chunk: 50

Company: RENASANT CORP
Filing Date: 2025-02-26
Form: PRE 14A
Chunk 50
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                                                  |     |           | 32.5 | % |        |  65 | % |          | 130 | % |

(1) Under his employment agreement, the payout of Mr. McGraw’s performance-based cash award for 2024 was subject to proration as if his employment with Renasant ended on May 1, 2024, reflecting the next step in Mr. McGraw’s retirement from service as a Renasant employee.

2024 PBRP Performance Measures and Goals

The following table lists the performance measures the compensation committee selected for purposes of the performance-based cash award for 2024 and the committee’s rationale for selecting each measure. In the committee’s view, each of these measures may be appropriately measured over an annual period.

| PBRP Performance Measures                                     |     | Why We Chose This Measure                                                              |
| Diluted earnings per share (“EPS”)                            |     | Earnings directly correlate to shareholder value                                       |
| Efficiency Ratio                                              |     | Reinforces Renasant’s emphasis on improving operational efficiency                     |
| Return on Average Tangible Common Equity (“ROTCE”) (non-GAAP) |     | Reflects the profitable use of our capital and how effectively our capital is deployed |

For 2024, all three performance metrics were absolute measures, measuring only our performance (rather than comparing our performance relative to the performance of a peer group). Consistent with past practice, the committee decided that judging our annual performance on an absolute basis was appropriate because unpredictable events (such as a sale of assets for a significant gain or loss) can materially impact a company’s earnings, profitability or efficiency ratio and thus significantly skew Renasant’s performance relative to its peers for the relevant year. If annual performance were measured relative to a peer group, PBRP outcomes may not be truly reflective of our named executives’ performance.

In February 2024, the committee approved the specific performance levels for the EPS, efficiency ratio and ROTCE performance measures for 2024. For each metric, the target level was set at our budgeted level for the relevant metric, which correlated to analysts’ consensus estimates at the time. As discussed in more detail above in the “Decision-Making Process for 2024” section, we use analysts’ consensus estimates in our budgeting process as a means to provide validation that the assumptions about our performance made during the budget process are substantially in line with the views of analysts who closely follow Renasant and other financial institutions. Threshold and superior performance levels for EPS and ROTCE were