Company: RNST
Filing Date: 2025-02-26
Form Type: PRE 14A
Source: 0000715072-25-000057
Chunk: 47

Company: RENASANT CORP
Filing Date: 2025-02-26
Form: PRE 14A
Chunk 47
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 includes a detailed discussion of the compensation committee’s decisions with respect to the performance measures specific to PBRP and LTIP incentives for 2024.

#### 2024 Compensation Decisions
This section of the CD&A describes the specific decisions the compensation committee made with respect to 2024 NEO compensation, including base salaries, performance-based payouts for cash and equity awards that vested at the end of 2024 and equity awards made in 2024 that will vest or be settled in later years.

General. As 2023 closed, although the liquidity crisis that followed the March 2023 bank failures had largely abated, financial institutions continued to maintain high levels of on-and off-balance sheet liquidity. At the same time, analysts generally believed that the Federal Reserve had largely completed its aggressive interest rate-raising efforts to combat inflation and was more likely to begin to lower interest rates in 2024. A predominant concern among analysts was whether the Federal Reserve could lower interest rates in a manner that resulted in a “soft landing,” and thereby avoid an economic recession. Analysts generally projected that, due to these concerns about an economic recession occurring at some point during the year, borrowers would exhibit caution in 2024.

These circumstances presented challenges to managing funding costs and growing net interest income effectively. Due to competitive pressures, interest rates on deposits and other sources of funding typically react to changes in market interest rates more slowly than yields on loans and other earning assets. Renasant’s 2024 annual budget attempted to account for this dynamic - the decision to maintain elevated levels of on-balance sheet liquidity in a declining interest rate environment - by budgeting earnings, profitability and operational efficiency that, although in line with the consensus estimates of investment analysts, were below (which, for the efficiency ratio, means a higher percentage) Renasant’s 2023 results (after adjustment to

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exclude one-time and nonrecurring items). For example, Renasant’s budgeted efficiency ratio for 2024 was approximately 406 basis points higher than our 2023 efficiency ratio.

When the compensation committee met in late 2023 and early 2024 to consider the 2024 executive compensation program, it took into account the expectations about the 2024 operating environment for financial institutions, as reflected in Renasant’s 2024 budget and analysts’ consensus estimates. As explained more fully below, the compensation committee continued to structure our executive compensation program to emphasize the generation of stable, long-term growth, the alignment of executives