Company: FRME
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000712534-25-000077
Chunk: 40

Company: FIRST MERCHANTS CORP
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 40
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 under the Program for 2024 is shown in the Grants of Plan-Based Awards for 2024 Table on page 39.

Mr. Hardwick’s target amount for 2024, as set by the Compensation and Human Resources Committee, was 80% of his base salary. The target amounts for Mr. Stewart, Ms. Kawiecki, and Mr. Martin were 60%, 60%, and 50%, respectively, of their base salaries. For each of them, their target payment was based entirely on FMC’s achieving operating earnings, calculated on a diluted GAAP basis, of $3.87/share of common stock. The minimum threshold that would result in a payment of 50% of the target amount was based on achieving operating earnings of $2.72/share, and the maximum payment of 200% of the target amount was based on achieving operating earnings of $5.47/share. For 2024, FMC’s reported operating earnings were $3.41/share. Under the payout schedule, achieving the operating earnings amount resulted in payouts to Messrs. Hardwick, Stewart, and Martin and Ms. Kawiecki of 88% of their target amounts.

Mr. Peterson’s target amount for 2024 was 50% of his base salary. Due to nature of his responsibilities, Mr. Peterson’s target payment was based on three (3) metrics: 70% of his target payment was based on the operating earnings schedule described in the immediately preceding paragraph, 15% was based on the Commercial line of business net contribution to the Company's operating revenue and 15% was based on the Commercial line of business total operating revenue. Under the payout schedule, achieving the Company earnings amount and the two metrics related to the Commercial line of business resulted in a payout to Mr. Peterson of 79% of his target amount.

As the Summary Compensation Table on page 37 shows, the payouts to the NEOs under the SMICP for 2024 were as follows:

Mr. Hardwick - $448,931

Mr. Stewart - $308,049

Ms. Kawiecki - $206,384

Mr. Martin - $176,855

Mr. Peterson - $170,666

#### LONG-TERM EQUITY INCENTIVE PLAN (

#### “LTEIP”
#### )

The LTEIP is an equity incentive plan that affords the NEOs and other management employees the opportunity to benefit as shareholders from long-term improvements in the Company’s financial performance, thus increasing their