Company: BPOPM
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001140361-25-010189
Chunk: 57

Company: POPULAR, INC.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 57
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 and regulatory trends and leading practices. As needed, the Committee also seeks information and advice from external legal counsel on regulatory and legal aspects of executive compensation, employee benefits and board committee governance. The Committee assesses the effectiveness of its compensation program by reviewing its strategic objectives and business plans, considering each NEO’s scope of responsibility, reviewing market reference data and assessing the relationship between pay and performance (Popular relative to its compensation peer group and executives relative to their performance goals). The Committee also evaluates whether our compensation

58 | 2025 POPULAR, INC. PROXY STATEMENT

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programs meet Popular’s goals by monitoring engagement and retention of executives, and by assessing the relationship between the Corporation’s performance, individual performance and actual payouts. Furthermore, in conjunction with the annual review of the compensation plans with the CRO, the Committee monitors and evaluates whether the design of incentive plans and sales practices fosters an environment of appropriate risk-taking and sound business decisions. The Committee may modify payments or adjust the compensation program in light of economic or business results, regulatory requirements, risk assessments or results of the annual shareholders advisory vote on executive compensation. It must also recoup previously awarded excess incentive-based compensation in the event of a required financial statement restatement and may recoup cash and equity-based incentives due to misconduct, in each case in accordance with the Corporation’s Compensation Recoupment Policy. The Committee’s main activities in 2024 included: Executive Compensation Determinations and Grants

| • | Reviewed performance of executive officers (including NEOs) and approved short-term cash incentive payouts as well as equity grants. |

| • | Reviewed, discussed and approved performance share goals with respect to TSR and ROATCE. |

| • | Reviewed and approved goals and objectives for the current year. |

| • | Assessed the compensation competitiveness of all NEOs and other executive officers. |

| • | Reviewed executive officer equity holdings and compliance with Popular’s stock ownership guidelines. |

| • | Received updates from its compensation consultant and other sources concerning regulatory developments, market trends and leading practices in executive compensation. |

| • | Validated the compensation peer group for future market comparisons. |

Governance

| • | Discussed incentive plan risks with the CRO and management, concluding that our incentive plans and sales practices did not encourage unnecessary or excessive risk taking. |

| • | Reviewed and administered the Corporation’s Compensation Recoupment Policy intended to comply with the requirements of Rule 10D-1 of the Securities Exchange Act of 1934 and the Nasdaq