Company: FRME
Filing Date: 2025-02-06
Form Type: 8-K
Source: 0000712534-25-000045
Chunk: 0

Company: FIRST MERCHANTS CORP
Filing Date: 2025-02-06
Form: 8-K
Item: Item 5.02
Chunk 0
---
ITEM 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS

(e) On February 3, 2025, the Board of Directors (the “ Board”) of First Merchants Corporation (the “ Corporation”) adopted the Corporation’s 2025 Senior Management Incentive Compensation Program (the “ SMICP”), a non-equity incentive compensation plan, applicable to the Corporation’s named executive officers and other senior management employees. Under the SMICP, the Board established the following schedule for the Corporation’s named executive officers, setting forth the percentage of base salary that will be paid if the executive’s goals are met or exceeded.

  Executive                                                                      Potential SMICP Cash Payment as Percentage of 2025 Base Salary at the Following Performance Levels                           
                                                                                                                                                                          Threshold      Target      Maximum  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Mark K. Hardwick, Chief Executive Officer                                                                                                                                    40.0        80.0        160.0  
  Michael J. Stewart, President                                                                                                                                                30.0        60.0        120.0  
  Michele M. Kawiecki, Executive Vice President and Chief Financial Officer                                                                                                    30.0        60.0        120.0  
  John J. Martin, Executive Vice President and Chief Credit Officer                                                                                                            25.0        50.0        100.0  
  Joseph C. Peterson, Executive Vice President and Chief Commercial Officer                                                                                                    25.0        50.0        100.0  

The Board determined that the goal for each of Hardwick, Stewart, Kawiecki and Martin will be the Corporation’s operating earnings, calculated on a diluted GAAP basis. Due to the nature of his responsibilities, Mr. Peterson's performance payment will be based 70% on the Corporation’s operating earnings and 30% on the operating revenue of and net contribution from the Commercial line of business. In all cases, a minimum threshold (below which participants do not receive payments), a target amount and a maximum amount was set by the Board for each goal.

Following the end of the fiscal year, the Compensation and Human Resources Committee of the Board will approve the payouts under the SMICP. Credit is given proportionately for performance