Company: AFGC
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001140361-25-012231
Chunk: 49

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 49
---
 President, plays a collaborative role with the Co-CEOs in the achievement of AFG’s business plan and budgeted targets. In recognition of this role, the compensation components for Mr. Berding are identical to those of the Co-CEOs. Base Salary The Company pays salaries designed to attract and retain superior leaders. After reviewing compiled data and materials as discussed above, the Compensation Committee determines annual base salaries for the Co-CEOs that are appropriate, in its subjective judgment, based on each Co-CEO’s responsibilities and performance and input from the Co-CEOs themselves. The Co-CEOs set salaries for the other NEOs, which are reviewed and approved by the Compensation Committee. The Co-CEOs believe that such salaries are appropriate in light of the levels of responsibility of such officers and their individual contributions to the Company’s success. Annual Bonus Plan Under the Annual Bonus Plan, participants can earn annual performance-based cash awards based on AFG’s current year performance, as the Committee believes that the Company’s overall performance is substantially related to the performance of its executives. In the first quarter of 2024, as part of its annual review of AFG’s executive compensation program, the Committee conducted an in-depth evaluation of the Annual Bonus Plan. Preliminarily, the Committee noted that the two existing plan metrics (Operating EPS and P&C Operating Earnings) overlapped, as the largest factor in meeting targeted Operating EPS was achieving strong P&C Operating Earnings. Moreover, certain annual financial measures that the Co-CEOs and senior management believe drive the Company’s success and are typically highlighted in internal and external communications—including return on equity and growth in book value per share—were not represented in the Annual Bonus Plan.

| 2025 Proxy Statement | American Financial Group49 |

TABLE OF CONTENTS Compensation Discussion and Analysis

The Committee therefore undertook a process to enhance the Annual Bonus Plan with the goal of achieving certain key goals. The goals included, among others, creating a structure that would incentivize participants to produce outcomes aligned with the Company’s financial success and shareholder value creation; cover both specialty P&C insurance performance and investment performance; be well-tailored and not incentivize improper risk-taking; and, ideally, include both absolute and relative measures comparing performance to peer companies. As part of its evaluation, which was assisted by Pay Governance, the Committee analyzed a wide variety of potential structures and metrics, benchmarked annual incentive plans of Compensation Peer Group companies and other insurance and non-insurance companies, reviewed incentive plan trends and prevailing practices