Company: MBINL
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001104659-25-032188
Chunk: 25

Company: Merchants Bancorp
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 25
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 vote and future advisory votes on executive compensation and any related feedback received from our shareholders via other channels when making its compensation decisions. General Discussion of Board, Compensation Committee, and Executive Roles in Compensation Decisions The Compensation Committee has the overall responsibility for evaluating the compensation plans and practices for all of our executive officers.The Compensation Committee annually reviews and determines the compensation of our Chief Executive Officer and makes a recommendation to the Board for the compensation of our other NEOs. The Compensation Committee generally completes its annual review in January following the fiscal year-end and meets in that same month to determine the compensation of our Chief Executive Officer and make recommendations to the Board regarding the compensation of our other NEOs for the upcoming fiscal year, in each case including both the specific components and amounts of such compensation. In determining the Chief Executive Officer’s compensation and making recommendations to the Board regarding the other NEOs’ compensation, the Compensation Committee members meet with members of senior management and review materials prepared by both the Company and third parties, such as our compensation consultant, to, among other reasons, ensure that the Compensation Committee understands the NEO’s current role, future plans the Company may have for such NEO, and the broader market for such NEO’s services. Additionally, the Compensation Committee solicits input from Mr. Petrie and Mr. Dunlap, including their assessment of each NEO’s performance and contributions to the Company’s strategic objectives. However, no NEO is present during the Compensation Committee’s deliberation or vote to approve any recommendation to the Board regarding any NEOs’ compensation. The Compensation Committee is responsible for establishing the target performance measures for all cash incentive awards and equity incentive awards and the payout ranges therefor for all NEOs.The Compensation Committee believes that including payout ranges is more in line with market practice and provides proper incentive for outstanding performance, without encouraging overly risky behavior. Additionally, for the equity incentive awards, the Compensation Committee generally uses the closing share price of the Company’s common stock on December 31 stof the prior fiscal year (or other date that is the last trading day of that year) for determining the amount of the payout. The Compensation Committee believes that using such date takes into account the Company’s performance through the fiscal year and more closely aligns the NEOs’ awards to the shareholders’ return. 17 Compensation Consultants The Compensation Committee’s charter gives it the authority to hire consultants to further its objectives and responsibilities. Prior to 2022, the Compensation Committee’s practice had been to not hire any consultants. This is largely because in the Board’s experience it has been difficult for