Company: DLX
Filing Date: 2025-03-10
Form Type: DEF 14A
Source: 0000027996-25-000107
Chunk: 7

Company: DELUXE CORP
Filing Date: 2025-03-10
Form: DEF 14A
Chunk 7
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111 billion. We reported net income of $52.9 million, compared to $26.2 million in the prior year, driven by improved operating results and lowered restructuring spending, net of lost income from the divestitures mentioned above. After similarly accounting for these divestitures, comparable adjusted EBITDA was $406.5 million, increasing 3.9% versus 2023, and reflecting a 19.3% margin. We delivered against our capital allocation priorities, reducing our total debt by $89.8 million, investing $94.3 million of capital expenditures primarily toward our growth initiatives, and continuing to return capital to shareholders via our dividend. We remain encouraged by our continued momentum as we have transformed into a trusted Payments and Data company. See Annex A for a reconciliation of adjusted EBITDA, comparable adjusted revenue, comparable adjusted EBITDA, and comparable adjusted EBITDA margin, each of which are non-Generally Accepted Accounting Principle (GAAP) financial measures, to the most directly comparable GAAP financial measure.

#### Executive Compensation Highlights
Our executive pay is comprised of base salary, an annual bonus calculated in accordance with our Annual Incentive Plan, and long-term equity incentives consisting of restricted stock units (RSUs) and performance share units (PSUs). Over 70% of our executive pay (87.5% for our President and CEO) is at-risk, and a significant portion is performance-based, as shown below.

We believe that this mix provides appropriate incentive for executives throughout the year, while ensuring that their experiences align with those of our shareholders. Each component of our compensation package serves specific objectives, as follows:

| Element               |     | Objectives                                                                                                                                                                           |
| Base Salary           |     | Provides competitive pay to attract and retain experienced and successful executives with the requisite experience to drive significant growth                                       |
| Annual Incentive Plan |     | Encourages and rewards valuable contributions to our annual financial and operational performance objectives by rewarding high performance and achievement of annual corporate goals |
| RSUs                  |     | Helps retain talent and aligns executive incentives with the interests of our shareholders                                                                                           |
| PSUs                  |     | Rewards share price performance on both an absolute and relative basis and provides incentive for executives to reach long-term financial and strategic goals                        |

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Environmental, Social and Governance (ESG) Highlights

Before ESG even had a name, Deluxe was incorporating many of its key principles into our operations. Our long-standing commitment to “