Company: MBINL
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001104659-25-032188
Chunk: 28

Company: Merchants Bancorp
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 28
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 with the interests of our shareholders. Total revenue is a key performance benchmark used by investors and analysts to evaluate a company’s success, and meeting or exceeding revenue targets can enhance both the company’s reputation and stock price. Revenue growth reflects our ability to originate both interest and non-interest income and grow our business, the strong market demand for our products and services, and is a sign of efficient operations and effective management practices. Earnings per common share directly reflects a company’s profitability on a per-share basis, making it a strong indicator of shareholder value creation. Further, earnings per common share is a metric that reflects the quality of our credit because, by properly managing credit risk and asset quality, we ensure that the Company maintains a healthy balance sheet, which supports stable earnings and thus positively influences earnings per common share. Any loan losses directly affect our net income and thus our earnings per common share. Return on average total equity assesses how effectively a company uses its shareholders’ investments to generate profits. It indicates how much profit we generate for each dollar of shareholder equity, and the higher the return on average total equity, the more efficient we are at generating income. The Compensation Committee established a target for each of the performance measures based on a Board approved budget for 2024. Each performance measure was equally weighted, and the incentives had a payout range of 75% to 125% of target. The Compensation Committee believes that these performance measures are meaningful and the targets are challenging without encouraging excessive risk and help ensure that NEOs’ incentives are aligned with the benefits and return received by shareholders. For 2024, the Compensation Committee recommended changes to Mr. Schroeter’s compensation structure as compared to 2023, replacing both his cash and equity incentive awards with a discretionary cash award that directly aligned his compensation to the success of our mortgage warehouse business. Additionally, shortly after the Board approved the Compensation Committee’s recommendations in January 2024, in March 2024 Mr. Macke announced his intention to retire from the Company. The Compensation Committee determined it was appropriate to modify Mr. Macke’s compensation structure such that instead of being eligible for both a cash and equity incentive award, Mr. Macke would only be eligible for a cash incentive award, with a target established at $420,000 to be pro-rated based on the number of days he was employed in 2024. 19 Base Salary Base salary is the only component of compensation that is not subject to the achievement of performance or vesting criteria. Base salary is designed to provide a fixed level of