Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 439

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 439
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 annual bonus that rewards performance against short-term metrics, share-based incentives that reward performance against long-term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend to be tailored to the company, its sector and long-term strategy, as well as the individuals the board is seeking to recruit and motivate. Recognizing the unique circumstances of each company, we determine whether to support a company’s approach to executive compensation on a case-by-casebasis. We rely on companies providing sufficient quantitative and qualitative information in their disclosures to enable shareholders to understand the compensation arrangements and assess the alignment with investors’ interests. Features we look for in compensation arrangements include:

| • |     | Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of 
 the company’s size, sector and market.                                                                         |

| • |     | Variable pay subject to performance metrics that are closely linked to the company’s short- and 
 long-term strategic objectives.                                                                 |

| • |     | A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and 
 equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.  |

| • |     | Outcomes that are consistent with the returns to investors over the relevant time period. |

| • |     | Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and 
 transparently.                                                                                           |

| • |     | A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in 
 the company within a defined time period, as determined by the board.                                        |

| • |     | Change of control provisions that appropriately balance the interests of executives and shareholders. |

| • |     | Clawback or malus provisions that allow the company to recoup or hold back variable compensation from               
 individuals whose awards were based on fraudulent activities, misstated financial reports, or executive misconduct. |

| • |     | Severance arrangements that protect the company’s interests but do not cost more than is contractual. |

We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or approve the compensation report where we do not see alignment between executive compensation arrangements and our clients’ financial interests. When there is not an alternative, or where there have been multi-year issues with compensation misaligned with performance, we