Company: KEY-PI
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001193125-25-066284
Chunk: 44

Company: KEYCORP /NEW/
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 44
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 minority investment in Key of approximately $2.8 billion. This investment was an extraordinary event that provides Key with a significant and unique opportunity to accelerate capital and earnings improvement and bolster our strategic position. Following the investment, the Compensation Committee met three times, including with the Compensation Committee’s independent compensation consultant, to discuss the change in Key’s positioning following the investment and what compensation arrangements would best incentivize Key’s NEOs to achieve these priorities. As part of these discussions, the Compensation Committee considered the following:

| • |     | The Compensation Committee did not make any modifications to the outstanding Performance Awards granted to NEOs in 2022 or 2023 to adjust for the impact of the unanticipated interest rate increases and regional bank failures on Key’s performance. This caused the 2022 awards to be paid at 0% of target. The 2023 awards are expected to pay out well-below target due to the same factors that impaired the performance of the 2022 awards, although final performance of the 2023 awards has not yet been determined or certified by the Compensation Committee. |

| • |     | In recognition of the impact that the 0% payout of the 2022 Performance Awards would have on Key’s ability to retain the employees we need to continue to operate effectively and generate value for shareholders, the Compensation Committee granted cash retention awards to current employees who were holders of the 2022 Performance Awards. Our executive leadership team (including our NEOs) were excluded from the cash retention awards, which were payable at approximately the same time as the 2022 Performance Awards would have otherwise vested. |

As a result, in December 2024, consistent with our pay for performance philosophy, the Compensation Committee determined that the executive leadership team (including our NEOs) would be granted the Capital & Earnings Improvement Awards, which require specific performance, accretive to shareholder value, for any value to be realized by an individual executive. These awards provide our NEOs with the opportunity to earn compensation for delivering on the potential of the strategic minority investment. No award will be earned unless the vesting and performance conditions are satisfied, and the NEO remains employed through the two-yearperformance period. The delivery of any shares earned from the awards will be deferred for an additional year after the end of the vesting period, further supporting our objectives of retention and long-term alignment between our NEOs and our shareholders. The maximum payout level for the Capital and Earnings Improvement Awards is 150% of the target number of performance shares. Further