Company: MMI
Filing Date: 2025-03-19
Form Type: DEF 14A
Source: 0001193125-25-057887
Chunk: 39

Company: Marcus & Millichap, Inc.
Filing Date: 2025-03-19
Form: DEF 14A
Chunk 39
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 NEO’s target based on performance against the performance goals. In addition, the Compensation Committee retained the flexibility to adjust awards based on the Company and each NEO’s performance and any other factors they deem appropriate. Annual incentives for 2024 were based on a combination of financial and individual strategic performance goals. The weightings between each performance category for each NEO were as follows:

| NEO                 |     | MMI Financial 
 Performance   |     |     | Individual/Strategic 
 Performance          |     |
| Hessam Nadji        |     |               | 50% |     |                      | 50% |
| Steven F. DeGennaro |     |               | 40% |     |                      | 60% |
| Richard Matricaria  |     |               | 40% |     |                      | 60% |
| John David Parker   |     |               | 40% |     |                      | 60% |
| Gregory A. LaBerge  |     |               | 35% |     |                      | 65% |

Financial Objectives for 2024. Pre-taxnet income is used for the financial performance goal for the Company’s Annual Incentive Plan because it provides a consistent, firm, and accurate measure of the Company’s overall financial performance and profitability, as it excludes the impact of tax considerations, which can be complex and variable due to the nature of our business, and the various state, local, and foreign taxes that we are subject to. As discussed in more detail above, our business was negatively impacted by the significant market headwinds experienced across the U.S. commercial real estate industry starting in the second half of 2022 and continuing through 2024. As a result, our internal operating plan anticipated significantly lower net income than that budgeted in 2023, but significantly higher than the actual pre-taxnet loss of $40.4 million in 2023. Furthermore, to ensure our annual cash incentive program was appropriately rigorous, the Compensation Committee set the pre-taxnet income financial performance target 50% higher than our internal operating plan (i.e., the annual cash incentive program target was pre-taxnet income of $30 million versus our pre-taxnet income budget of $20 million). The 2024 target goal was established on the premise that the Federal Reserve would begin reducing interest rates by the second quarter and bringing about improving market conditions starting in the third quarter, which ultimately did not occur. The Compensation Committee also determined that approving such an aggressive goal was