Company: MBINL
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001104659-25-032188
Chunk: 31

Company: Merchants Bancorp
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 31
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 For Mr. Schroeter, the Board established a target discretionary cash award of $420,000, but authorized Mr. Petrie or Mr. Dunlap to determine the final amount of such cash bonus based on the 2024 performance of our mortgage warehouse business, provided that such final amount may not exceed 200% of target without the Board’s prior approval. Mr. Petrie or Mr. Dunlap were required provide the details of any such cash bonus to the Compensation Committee promptly after the award. For 2024, neither Mr. Petrie nor Mr. Dunlap awarded any discretionary cash bonuses to any NEO other than Mr. Schroeter. Mr. Dunlap awarded Mr. Schroeter a discretionary cash bonus of $840,000, which he believed was appropriate considering the success of our mortgage warehouse business in 2024, notwithstanding the challenging market conditions for single family mortgages caused by, among other factors, interest rates remaining higher and low housing inventory. In addition to the cash incentives and cash bonuses described above, each of our NEOs are eligible to receive certain nominal cash incentive awards to the same extent as all other employees, such as for completing certain training. For 2024, each NEO, other than Mr. Macke, who retired in September 2024, received $100 in such nominal cash incentives. Equity Awards Under our 2017 Equity Incentive Plan (“2017 Plan”), we have the ability to award a variety of instruments, but to date have only issued restricted stock units, with each restricted stock unit subject to vesting requirements established by the Compensation Committee. We believe that other instruments, such as options, create unnecessary complexity and do not align with the best interest of our shareholders. Additionally, we do not pay dividends or any other form of compensation on restricted stock units prior to vesting. If an equity incentive award is established for a NEO, it is tied to our achievement of certain performance measures established by the Compensation Committee for that fiscal year. Further, the performance measures established must be consistent with those permitted under the 2017 Plan and the Compensation Committee is responsible for determining the level of achievement of those performance measures. Messrs. Petrie, Dunlap, Macke, and Sievers each had a target equity incentive award established in 2024 under the 2017 Plan. However, as provided above in this CD&A, Mr. Macke’s equity incentive award opportunity was revoked after his retirement announcement and replaced with an increase to his target cash incentive award, and Mr. Sievers’ equity