Company: RFMZ
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017693
Chunk: 93

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 93
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, O’Neill’s
and Browne’s total compensation package, like others in the Adviser’s business, is a package designed to attract and retain
investment professionals. The compensation package includes a base salary fixed from year to year. The amount of the base salary is assessed
for its competitiveness in the industry and geographic location of the Adviser. The compensation package also provides for an annual but
variable performance bonus. The performance bonus reflects individual performance of the portfolio manager in his or her allocated duties
and responsibilities. While performance of the funds managed by the portfolio manager is considered in determining the annual performance
bonus, it is but one factor. The overall success of the Adviser in its business objectives and the performance of the Adviser’s
business as a whole are more important factors than the investment performance of a particular fund or account. Messrs. Galley, O’Neill
and Browne also participate in a 401K program on the same basis as other officers of the Adviser, which includes matching of employee
contributions up to a certain percent of the portfolio manager’s base salary. Those portfolio managers that are also equity stakeholders
in the Adviser or its affiliates may also receive periodic distribution of profits from business operations.

Subadviser Compensation

As of June 30, 2025, salaries are set by reference to a
range of factors, taking into account each individual’s seniority and responsibilities and the market rate of pay for the relevant
position. Annual salaries are set at competitive levels to attract and maintain the best professional talent. Variable or incentive compensation,
both cash bonus and deferred awards, are a significant component of total compensation for portfolio managers at MacKay Shields. Incentive
compensation received by portfolio managers is generally based on both quantitative and qualitative factors. The quantitative factors
include, but are not limited to: (i) investment performance; (ii) assets under management; (iii) revenues and profitability; and (iv)
industry benchmarks. The qualitative factors may include, among others: leadership, adherence to the firm’s policies and procedures,
and contribution to the firm’s goals and objectives.

MacKay Shields maintains a phantom equity plan for those
employees who qualify whereby awards vest and pay out after several years, to attract, retain, motivate and reward key personnel. Portfolio
managers that participate in the phantom equity plan share in the results and success of the firm as the value of award tracks the operating
revenue and operating profit of Mackay Shields. This approach helps to inst