Company: AGM-PH
Filing Date: 2025-04-16
Form Type: DEF 14A
Source: 0000845877-25-000143
Chunk: 53

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-04-16
Form: DEF 14A
Chunk 53
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 need for growth in business volume, earnings, and revenues; the maintenance of disciplined underwriting and high credit quality through prudent risk management; and continued financial stability with the enhancement of stockholder value.

Long-Term Incentive Compensation and Policies and Practices Related to the Grant of Equity Awards. For long-term incentive compensation for executive officers, the Compensation Committee grants equity-based compensation each year in the form of SARs, performance-based RSUs, and time-based RSUs. Executive officers are the only employees who receive SARs and performance-based RSUs. Members of the Board and non-executive employees do not receive those types of equity awards and receive only time-based RSUs. All grants of equity-based compensation must comply with a policy approved by Farmer Mac's Board designed to:

• create a framework for a consistent process for granting equity-based awards;

• prevent the backdating of awards;

• prohibit the manipulation of the timing of the public release of material information or of an award with the intent to benefit an award recipient; and

• ensure the overall integrity and efficiency of Farmer Mac’s award process.

Under this policy, for grants of equity-based compensation awards in the form of RSUs, the number of RSUs awarded is based on a target long-term incentive value for the individual divided by the average closing price of Farmer Mac’s Class C Non-Voting Common Stock over the previous 30 calendar days ending seven calendar days before the grant date. For equity grants in the form of SARs, the number of SARs awarded is based on a target long-

term incentive value for the individual divided by the Black-Scholes value ending seven calendar days before the grant date based on assumptions consistent with the assumptions Farmer Mac uses for determining stock-based compensation expense under GAAP. The Board policy requires the exercise price or grant price of any SAR to be the fair value of Farmer Mac’s Class C Non-Voting Common Stock on the grant date, defined as the closing price of that stock as reported by the NYSE on the grant date.

Farmer Mac generally grants equity-based compensation to directors and employees (including to our named executive officers) each year between three and ten business days after the filing of Farmer Mac's Annual Report on Form 10-K with the SEC. Awards may also be made in special circumstances such as the start of employment, exceptional performance, promotion, assumption of additional duties, or to incentivize continued employment. The annual equity grants to executive officers are generally allocated as follows:

• 50% of the applicable targeted value in time-based RSUs