Company: MGRE
Filing Date: 2025-04-11
Form Type: DEF 14A
Source: 0001004434-25-000021
Chunk: 10

Company: AFFILIATED MANAGERS GROUP, INC.
Filing Date: 2025-04-11
Form: DEF 14A
Chunk 10
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 additional information.

| Formulaic Derivation of Incentive Compensation and Mix of Incentive Awards |

• The Overall Performance Assessment Score of 118% was applied to the CEO Target Total Payout, producing $15.0 million in Annual Incentive Compensation • Annual Incentive Compensation was then allocated between cash bonus and long-term equity awards using a pre-established tiered formula which caps cash awards at 50% of Annual Incentive Compensation, and in which the proportion of equity awards increases as Annual Incentive Compensation increases. The allocation resulted in a formulaic cash bonus of $6.0 million (40%) and a formulaic equity incentive award amount of $9.0 million (60%) • Beginning with performance year 2024, the Compensation Committee increased the vesting duration of Long-Term Performance Achievement Awards to 4-year cliff vesting from 3-year cliff vesting, and increased the proportion of Long-Term Performance Achievement Awards as a percentage of total formulaic equity incentive awards to 75% from 60%. These changes further enhance the alignment of future realized compensation with long-term shareholder value creation

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| How did the CompensationCommittee determine thatthis incentive determinationapproach was appropriateand rigorous? What was therationale for the changesmade to the PerformanceAssessment metrics andweightings? | •Implemented Best Practices:The Compensation Committee integrated many years of shareholderfeedback to redesign the incentive determination process for performance year 2021, resulting in anobjective, formulaic, streamlined approach which incorporates compensation targets, performance metrictargets across financial, Total Stockholder Return (“TSR”), and operating measures in a single quantitativePerformance Assessment. The Committee implemented a pre-set formula governing the mix of cash andequity incentive awards•In 2024, in response to shareholder feedback, the Committee further refined the Performance Assessmentscorecard by streamlining and refining metrics; incorporated 4-Year Cumulative EEPS as a second metric inaddition to Average ROE (in response to feedback that performance-based equity had been driven by a‘single’ metric); and increased the vesting duration and performance measurement period to 4 years forannual performance-based equity grants, to further enhance alignment of future realized compensation withlong-term business performance and shareholder value creation