Company: MCHB
Filing Date: 2025-04-15
Form Type: DEF 14A
Source: 0001518715-25-000066
Chunk: 48

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: DEF 14A
Chunk 48
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 Annual Cash Incentives
All of our NEOs are eligible to receive incentive awards, which are intended to focus executives on short-term financial and strategic goals that are designed to contribute to long-term value.

Mr. Mason and Mr. Michel, who are non-commissioned NEOs, are eligible to participate in the Annual Incentive Plan, which provides an opportunity to receive an annual incentive award that is contingent on achieving pre-defined annual corporate objectives, as well as individual goals which target their respective areas of responsibility. Mr. Endresen, who is a commissioned NEO, is eligible for annual incentive awards under a separate arrangement, which provides for incentive payout opportunities based on business unit performance results.

Non-Commissioned Incentive Plan Awards

The Annual Incentive Plan provided our non-commissioned NEOs with the opportunity to earn a performance-based annual cash incentive award. Actual bonus payouts depend on the achievement of pre-established performance objectives and can range from 0% to 150% of target award amounts.

Target annual incentive opportunities are expressed as a percentage of base salary and were established by the Compensation Committee for 2024 based on the NEO’s level of responsibility and the NEO's ability to impact overall results. The Compensation Committee also considers comparable market data in setting target award amounts. The 2024 target award opportunities in terms of percentage of salary for the non-commissioned NEOs were as follows:

| Non-Commissioned NEO(1) |     | Target       
 Opportunity  
 as % of Base 
 Salary       |
| Mark K. Mason           |     | 75%          |
| John M. Michel          |     | 60%          |

(1) The target opportunities for Messrs. Mason and Michel as a percentage of base salary were unchanged from the 2023 levels.

Actual awards for the CEO are assessed by the Compensation Committee based on performance against corporate financial goals and individual performance. Actual awards for the other non-commissioned NEOs are based on the achievement of corporate or business unit financial goals and individual performance objectives as assessed and recommended by the CEO and approved by the Compensation Committee. For 2024, the Compensation Committee established the following balance between corporate and individual goals:

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| Non-Commissioned NEO |     | Corporate    
 Goals Weight |     | Individual   
 Goals Weight |
| Mark K. Mason(1)     |     | 80%          |     | 20%          |
| John M. Michel(2)    |     |