Company: AFGC
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001140361-25-012231
Chunk: 56

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 56
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 Corp.                                   |
| 19.Safety Insurance Group, Inc.                |
| 20.Selective Insurance                         |
| 21.Travelers Companies, Inc.                   |
| 22.W.R. Berkley Corporation                    |

The Company’s growth in book value per share for the period from January 1, 2022 through December 31, 2024 placed it fifth in comparison to the plan companies (entitling each participant to 76.8% of the maximum award for this component). Each Co-CEO received an award of $1,920,000 and Mr. Berding received an award for this component of $960,000 for the performance period. Long-term return on equity awards are based on average annual return on equity for the performance period. For the 2022-2024 performance period, if the return on equity percentage equaled or exceeded 15.25% the participant would receive the maximum award amount attributed to this metric. If the return on equity percentage equals or is less than 11%, the participant would receive no award amount. For a return on equity greater than 11% but less than 15.25%, the award amount will be calculated by applying straight-line interpolation rounded to the nearest whole dollar amount. Each participant’s target award of 50% of the maximum award for the return on equity component would be earned if the Company’s return on equity equaled 13.125% for the three-year period. The Company’s annual average return on equity for 2022-2024 was 20.1%. Each participant was entitled to the maximum award for this component. Each Co-CEO received an award of $2,500,000, and Mr. Berding received an award for this component of $1,250,000. After combining the two components, each of the Co-CEOs received an award of $4,420,000 and Mr. Berding received an award of $2,210,000. These amounts represented 176.8% of the target award and 88.4% of the maximum award. Long-Term Equity Incentive Compensation—Broad-Based Equity Award The Compensation Committee believes long-term equity incentive compensation encourages management to focus on long-term Company performance and provides an opportunity for the NEOs and certain designated key employees to increase their stake in the Company through equity awards that vest over time. The Compensation Committee believes that equity awards represent an important part of AFG’s performance-based compensation system and that they align AFG’s