Company: BWFG
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0001505732-25-000079
Chunk: 25

Company: Bankwell Financial Group, Inc.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 25
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 also believe that director compensation should serve to solidify the alignment of the shareholders' interests with that of our Board of Directors and relate to our success or the success of us or our affiliates.

The board and committees of the Company and the Bank (collectively, “Bankwell”) meet jointly and we pay a combined fee for service on both. We pay each director (other than our CEO) an annual retainer for services on the Board of Directors and Committees, which is based upon the Committees on which the director serves. The Chairman of the Board, Vice Chairman and the Chairs of each committee receive an additional retainer for their service in such capacity.

This compensation was recommended by the Compensation Committee and approved by our Board of Directors after careful and extended evaluation and consideration of the results of the competitive review of director compensation completed by the independent compensation consultant hired by the Compensation Committee to review our Board of Directors ’ compensation relative to its peer group.

We established the Bankwell Deferred Compensation Plan for Directors, or the Directors Plan, in 2008, which was amended and restated in 2023 to comply with SEC rule changes. This non-qualified deferred compensation plan is designed to enable non-employee directors to defer receipt of cash compensation on a tax-advantaged basis. Non-employee directors may elect to defer all (and not less than all) of such director’s cash compensation for a calendar year. Amounts deferred under the Directors Plan are credited to a book account and deemed invested in the

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Company’s common stock. The Directors Plan is indirectly funded through a so-called “Rabbi Trust,” which is administered by an independent third party trustee. Funds held in the Rabbi Trust are invested in our common stock through open market purchases by the trustee. A director’s deferred compensation is paid (in common stock) following retirement, except under certain specified circumstances that permit earlier payment, including a severe financial hardship resulting from illness or accident, loss of property or other similar extraordinary and unforeseeable circumstances.

Each non-employee director also receives a n annual restricted stock award as recommended by the Compensation Committee and approved by the Bo ard of Directors. Prior to 2025, such awards were made in December and began to vest on January 2 nd of the second fiscal year following the grant date (e.g., the December 2023 grant began vesting on January 2, 2025). Accordingly, the Director Compensation Table in the proxy statement for the 2024 annual shareholders meeting, reflected the