Company: CFG-PE
Filing Date: 2025-04-11
Form Type: DEFA14A
Source: 0000759944-25-000047
Chunk: 2

Company: CITIZENS FINANCIAL GROUP INC/RI
Filing Date: 2025-04-11
Form: DEFA14A
Chunk 2
---
 and Elizabeth Johnson (Former Vice Chair and Chief Experience Officer). As noted in the 2025 Proxy Statement, Ms. Johnson retired in March 2025 and forfeited her LSAs as a result. The combination of the strength of our leadership team and their success in transforming our business along with the competitive market for executive talent led the Board to conclude that granting the LSAs was a necessary step in planning for an eventual smooth CEO transition. In granting the LSAs, the Board’s goal was to preserve its ability to consider several internal CEO candidates. Recent senior executive transitions in the financial sector and grants of special awards, including at peers KeyCorp, Truist, and PNC, underscore the strength of the market for executive talent and the perceived benefit of protective measures. While some individuals may believe that smooth CEO transitions should not require additional awards, given the context described above, the Board and Compensation and HR Committee determined it was critical to demonstrate the Company’s commitment to these executives at that time. • Magnitude of Awards In determining award amounts, the Company sought to establish values that were market competitive and recognized the attractiveness of each candidate for positions at other financial institutions. In the case of Mr. Coughlin, another relevant factor was his level of equity ownership relative to other executives given that he is a newer member of Mr. Van Saun’s direct management team, with the goal of further aligning him with shareholder interests. Award amounts also took into account the timeline for CEO succession readiness. Although some may believe that the aggregate value of LSAs granted to Mr. Woods ($7MM) and Mr. Coughlin ($12MM) merit scrutiny given the size of the awards relative to the executives’ annual target compensation, the Board does not agree. In thinking about award value, the Board and Compensation and HR Committee believe it is more appropriate to consider the annualized value of the awards over the three-year vesting period instead of aggregate award values. Also, the purpose of these awards was to demonstrate the Company’s commitment to these executives so that they remain with the Company over the duration of the three-year vesting period; as such, we do not believe the value should be driven or evaluated by reference to these executives’ annual target compensation amounts. Form and Metrics of Awards Half of the total LSA value was granted in the form of PSUs with metrics aligned to the drivers of long- term returns and which further our strategic plan. A significant portion was also granted in the form of RSUs (33%-50%) to encourage continuous service