Company: ASB
Filing Date: 2025-03-17
Form Type: DEF 14A
Source: 0000007789-25-000025
Chunk: 54

Company: ASSOCIATED BANC-CORP
Filing Date: 2025-03-17
Form: DEF 14A
Chunk 54
---
Us for the purpose of making these grants, the Committee

used the grant date value of the RSUs.

2024-2026 LTIPP

Grants under the 2024-2026 LTIPP are based on a three-year performance period that began on January 1, 2024, and will end

on December 31, 2026. Based on the Company’s performance during the period, the number of actual shares that vest can range

from a minimum of 0% to a maximum of 150% of the target award.

For the 2024-2026 LTIPP period, the Committee approved a refinement to the plan by shifting the return metric from Return on

Average Tangible Common Equity (ROATCE) to ROCET1 (defined below). The 2024-2026 performance metrics established

by the Committee to determine the vesting of the PRSUs are as follows:

• Relative Total Shareholder Return (TSR) (65% weight ) is measured against the KBW Nasdaq Regional Banking

Total Return Index (^KRXTR). The Committee believes Relative TSR, which includes the net change in stock price

plus dividends paid during the applicable period, is a valuable measure because it directly aligns with shareholder

interests and encourages management to outperform peers in the creation of shareholder value.

Compared to the KRXTR, Relative TSR performance below the 25 th percentile (Threshold) results in no payout

whereas performance achieved at the 75 th percentile results in a 150% payout (Maximum). Based on common market

practice, Relative TSR is calculated using a 30-day share price average.

TSR requires 50 th percentile performance for a Target payout. If absolute TSR is negative at the end of the three-year

performance period, the TSR payout will be capped at 100% of Target.

• Absolute Return on Common Equity Tier 1 (ROCET1) (35% weight ) is measured using a target range of absolute

ROCET1 values over the 2024-2026 performance period. The Committee determined that ROCET1 is an appropriate

metric to measure performance as it both considers return to shareholders and is a measure of bank soundness.

Moreover, it is a highly regulated and consistent metric that exhibits less volatility from economic conditions and also

provides more stability over the long term. ROCET1 is computed by dividing Net Income Available for Common

(NIAC) by average Common Equity Tier 1 capital (CET1