Company: SYBT
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001437749-25-007118
Chunk: 58

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 58
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 to whether cash incentives would be paid to Messrs. Hillebrand, Poindexter and Stinnett was based solely upon the achievement of diluted EPS objectives while the diluted EPS represents 25% of the weight for Mr. Rehm and Ms. Budnick. However, the diluted EPS is a hurdle, so if the minimum threshold of diluted EPS is not achieved, annual incentive payments are forfeited in full. The diluted EPS target performance levels are set forth in the table below.

The Committee used diluted EPS in 2024, as it had done in 2023, with respect to short-term cash incentives. The Committee set the target at a level that it considered rigorous and challenging and considered the relevant risks and opportunities. More specifically, the Committee reviewed the relevant financial objectives established during the detailed budgeting process, and assessed various factors related to the achievability of these budget targets, including the risks associated with various macroeconomic factors and the risks of achieving specific actions that underlie the targets and the implied performance relative to prior years. Considering these factors, the Committee set the 2024 target performance level for the diluted EPS goal at $3.36. The 2024 target was set 13% below the 2023 target of $3.85, which exceeded consensus analyst estimates at the time. The Committee determined that setting the 2024 target above 2023 actual results was not practical, as the 2024 actual adjusted EPS was expected to be significantly impacted by market conditions affecting the entire financial services industry, including declining interest rates, net interest margin compression and increasing credit costs. These factors resulted in lower budget expectations for 2024 net income as compared to 2023 results. Ultimately, the actual diluted EPS for 2024 was $3.89, which exceeded the maximum performance level.

The annual cash incentive formula includes increasingly higher payout percentages for corresponding higher diluted EPS levels, further reinforcing the Committee’s pay-for-performance philosophy. EPS targets and corresponding bonus percentages for 2024 were as follows:

|                |     |         |                 |     | Bonus as a Percentage of Base Salary |     |   |     |            |     |   |     |          |    |   |
|                |     | EPS ($) |                 |     | Mr.                                  
 Hillebrand                           |     |   |     | Mr.        
 Poindexter |     |   |     | Mr.      
 Stinnett |    |   |
| Threshold      |     |         |            3.22