Company: AGM-PH
Filing Date: 2025-04-16
Form Type: DEF 14A
Source: 0000845877-25-000143
Chunk: 94

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-04-16
Form: DEF 14A
Chunk 94
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. Farmer Mac believes that Earnings (sometimes referred to as Core Earnings before Credit) is the most important financial performance measure tied to executive compensation. Earnings is used to determine 25% of annual short-term incentive compensation awards and most appropriately reflects Farmer Mac's overall performance over the short-term. Cumulative three-year Earnings is also the primary measure used to determine the vesting of performance-based RSUs granted to the NEOs each year from 2022 through 2025. Description of Pay Versus Performance Relationships Company TSR versus Peer Group TSR . Farmer Mac's five-year cumulative TSR for 2020-2024 outperformed the companies included in the S&P 500 Financial Services Index selected as the peer group. The peer group TSR was higher than Farmer Mac's TSR in 2020, but Farmer Mac's TSR was higher in 2021 and 2022 and significantly higher in 2023 and 2024. CAP versus Company TSR . The CAP for the PEO and the average CAP for the non-PEO NEOs were aligned with Farmer Mac's TSR during 2020-2024, as fluctuations in the stock price of Farmer Mac's Class C Non-Voting Common Stock is a significant driver of the calculation of CAP. All those measures decreased in 2024 compared to 2023, following an increase in 2023 compared to 2022. All those measures also decreased from 2021 to 2022, after having increased in 2021 compared to 2020. During 2024, Farmer Mac experienced moderate price appreciation in the shares of its

Class C Non-Voting Common Stock from about $191 at the end of 2023 to about $197 at the end of 2024. Farmer Mac experienced significant appreciation in its stock price in 2021 and 2023, increasing from about $74 at the end of 2020 to about $124 at the end of 2021 and from about $113 at the end of 2022 to about $191 at the end of 2023. In both 2020 and 2022, Farmer Mac's stock price decreased during the calendar year. Those changes in stock price during the five-year period were consistent with the changes in CAP to both the PEO and non-PEO NEOs. This relationship is by design, as the value of Farmer Mac’s equity-based incentive awards are tied directly to stock price in addition to the company’s financial performance. CAP versus Net Income and Earnings .