Company: AFGC
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001140361-25-012231
Chunk: 47

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 47
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 |     | No director or executive officer hedging and no pledging of common shares unless preapproved in limited circumstances |
|                  |     | No plans that encourage excessive risk-taking                                                                         |

2024 Compensation Determinations and Results Overview of 2024 Compensation Determinations and Results AFG annually holds an advisory vote on the compensation of its NEOs, commonly referred to as a Say-on-Pay vote. In 2024, our shareholders approved the compensation of our NEOs, with approximately 95% of votes cast in favor of our Say-on-Pay resolution. The Compensation Committee believes that the result of the advisory vote is valuable in assessing its compensation decisions and considers each year’s vote in its annual review and design of the Company’s executive compensation programs. In 2023, the Company’s overall performance was very strong on an absolute basis and relative to its industry peers, including a core return on equity of 19.8%, combined ratio of 90.3%, growth in book value per share plus dividends of 16.6%, and the return of approximately $900 million to shareholders through regular and special dividends and share repurchases. Notwithstanding AFG’s strong financial performance in 2023, the Company’s Operating EPS and Specialty P&C Earnings—the two metrics under the Annual Bonus Plan—each fell below target. The executive compensation program for 2024 was designed similarly to the program in 2023. The principal change, as discussed further in the “Annual Bonus Plan” section below, resulted from the Committee’s annual review of the Company’s compensation program, with guidance and input from Pay Governance, its independent compensation consultant. For 2024, the Committee determined to use three near-equally weighted metrics for the Co-CEOs and President, each of which is a key driver of AFG’s financial performance and a focus of its investors. The Operating EPS metric was retained from prior years. As the other two metrics, the Committee added annual return on equity and relative growth in book value per share compared to the companies in the Compensation Peer Group. For each metric, the Committee strove to set challenging target levels that would be achievable only through strong Company performance and maximum levels that would represent extraordinary performance, both objectively under AFG’s business plan and relative to its Compensation Peer Group companies. In addition to these metrics, Messrs. Hertzman and Weiss retained a discretionary element under the Annual Bonus Plan. In 2024, AFG delivered strong financial and operational performance, which included Operating EPS of $10.75