Company: HIG-PG
Filing Date: 2025-04-10
Form Type: DEF 14A
Source: 0000874766-25-000040
Chunk: 69

Company: HARTFORD INSURANCE GROUP, INC.
Filing Date: 2025-04-10
Form: DEF 14A
Chunk 69
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40th percentile of our corporate peer group. If the Plan is approved, our full dilution level on a pro forma basis on February 28, 2025 was approximately 5.5%. Full dilution is (a) the 8,500,000 new shares requested for issuance under the Plan; plus (b) 8,231,095 shares that were subject to equity awards that remained outstanding under prior equity plans as of February 28, 2025 (assuming that all outstanding options will be exercised in full and that all outstanding performance awards will achieve target performance and service-based restricted stock units will vest, but excluding dividend equivalent rights) divided by the sum of (a) and (b) above (16,731,095) plus common stock outstanding. While our fully diluted overhang, if the Plan is approved, will increase to approximately 5.5%, the result is at median of our corporate peer group, demonstrating a reasonable level of dilution on a comparative basis.

Total Potential Dilution (or Overhang) at February 28, 2025:

| Total equity based awards outstanding |     | + |     | Shares available for future issuance |     | ÷ |     | Total number of issued and outstanding shares of common stock |     | + |     | Total equity based awards outstanding |     | + |     | Shares available for future issuance |     | = |     | Overhang |
| 8,231,095                             |     |   |     |                            8,500,000 |     |   |     |                                                   288,025,305 |     |   |     |                             8,231,095 |     |   |     |                            8,500,000 |     |   |     | 5.5%     |

Equity Award Granting Practices and Share Usage. In setting and recommending to stockholders the increase in the number of shares authorized, the Compensation Committee and the Board considered historic share usage and resulting burn rate as reflected in the table below. Burn rate provides a measure of our annual share utilization. As shown in the following table, the company’s three-year average “value-adjusted burn rate” was 1.45% (reflecting ISS methodology, which calculates burn rate on a full-share equivalent basis), which is above the ISS benchmark of 0.98% applied to our industry.

| 2025 Proxy Statement |     | 69 |

| COMPENSATION MATTERS |

As of December 31,