Company: MBINL
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001104659-25-032188
Chunk: 29

Company: Merchants Bancorp
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 29
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 NEO, in addition to establishing the relevant performance measures, the Compensation Committee establishes a target and weight for each performance measure and payout percentage for above target performance. Additionally, all cash incentives are conditioned upon Merchants Bank being well capitalized under applicable FDIC regulations at the end of each quarter of that calendar year. As provided above in this CD&A, for 2024 cash incentive awards, the Compensation Committee established:

| ● | Performance Measures: total revenue, earnings per common share, and return on average total equity. |

| ● | Weighting: equal weighting to each performance measure. |

| ● | Payout Percentages: between 75% to 125% of target; provided, however, payouts could be reduced to zero percent if threshold 
 performance measures were not met and/or Merchants Bank failed to be well capitalized for any quarter in 2024.              |

For 2024, neither Mr. Dury nor Mr. Schroeter had an established target cash incentive award. The Compensation Committee and Board believed that their compensation was appropriately structured in other ways to ensure that they are properly motivated and aligned with shareholder interest. In particular, Mr. Dury is compensated with commissions on fees the Company received on certain loans he was responsible for closing and also with a volume bonus based on the overall business generated by Merchants Capital (as further described in Executive Compensation- Employment Agreementsbelow) and Mr. Schroeter is compensated based on a discretionary bonus related to mortgage warehouse’s performance. Messrs. Petrie, Dunlap, Macke, and Sievers each had a target cash incentive award established in 2024, however, Mr. Sievers’ and Mr. Macke’s incentive award would be pro-rated based on the number of days employed in 2024. At each fiscal year-end, the Compensation Committee reviews our overall performance as compared to the established targets for the performance measures, reviews whether Merchants Bank maintained well capitalized status for each quarter, and determines whether the NEO is entitled to receive a payout of such cash incentive. For 2024, if the 75% of target threshold for a performance measure was not met, none of Messrs. Petrie, Dunlap, Macke, and Sievers would receive a payout with respect to the portion of their cash incentive award associated with that performance measure. Also, none of Messrs. Petrie, Dunlap, Macke, or Sievers would receive a payout if Merchants Bank was not well capitalized at the end of any quarter in 2024.