Company: DLX
Filing Date: 2025-03-10
Form Type: DEF 14A
Source: 0000027996-25-000107
Chunk: 37

Company: DELUXE CORP
Filing Date: 2025-03-10
Form: DEF 14A
Chunk 37
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| Enterprise Comparable Adjusted EBITDA  |     | 30%                     |     |                                                |     |   $406M |     | 80%    |
| Enterprise Comparable Adjusted EPS     |     | 20%                     |     |                                                |     |   $3.26 |     | 84%    |

The strategic initiatives represent 20% of the overall bonus potential, with 10% tied to enterprise strategic initiatives and 10% tied to segment-specific strategic initiatives (Print segment only for Ms. Engelhardt and the average of all segments combined for the other NEOs). In determining the payout percentages for the strategic initiatives, the Committee considered the following:

• For the Enterprise strategic initiatives, in 2024, the North Star program unlocked approximately 83% of the target implemented value. Qualitatively, the Committee recognized the significance of the company-wide efforts toward this initiative and the resulting value to shareholders and awarded a 25% payout for this objective.

• For Ms. Engelhardt and the Print segment, the strategic initiative focused on retention of personal check units and did not account for the legacy promotional solutions business that is now included in this segment. The Print team delivered strong performance in the area of retention of personal check units with a retention level at 98%. Qualitatively, after considering the lower than expected promotional solutions business results, the Committee set the payout for this objective at 117%.

• Against its strategic initiatives, Data Solutions achieved 85 new logos, and the Committee set a 200% payout for this segment.

• The Merchant Services segment achieved approximately 8% growth in new merchant activations. Qualitatively, after considering the impact of cross-selling by other segments on these results, the Committee set the payout for this segment at 165%.

• The Committee set the payout for the strategic initiatives for B2B Payments at 30% after considering 162 new activations and overall performance.

• Based on the foregoing, the blended calculated strategic initiatives payout for Ms. Engelhardt was 71% and for the enterprise NEOs was 77%.

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As a final step, after combining the above financial and strategic initiative metrics, the Committee exercised discretion to adjust payouts downward because, while significant progress was made during 2024, the Committee chose to maintain optimum alignment between management's interests and those of shareholders. This downward adjustment resulted in a blended AIP payout of 70.6% for each NEO, as shown in the following table:

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