Company: BOH
Filing Date: 2025-03-14
Form Type: DEF 14A
Source: 0000950170-25-039381
Chunk: 57

Company: BANK OF HAWAII CORP
Filing Date: 2025-03-14
Form: DEF 14A
Chunk 57
---
AI'I  •  2025 PROXY STATEMENT |

| COMPENSATION DISCUSSION AND ANALYSIS |

Based on similar factors and individual objectives, including an assessment of effective risk management, the CEO annually reviews the performance of each of the other NEOs. The conclusions and recommendations based on those reviews, including any recommendations for salary adjustments, annual awards and equity components, are presented to the Committee for consideration. The Committee believes that retaining discretion to assess the qualitative performance of the CEO and other NEOs gives the Committee members the ability to more accurately reflect individual contributions that cannot be quantified. The following table displays the 2024 targets and 2024 actual results for each individual metric considered in the Committee’s scorecard assessment. The scorecard was designed based on both quantitative and qualitative metrics, and all metrics are equally weighted (20%). The Committee implemented a cap of 250% for the CEO and 200% for the other NEOs on achievement level of each individual metrics in addition to an aggregate cap on compensation. A score above 20% implies a payout above the target level and a score of 50% implies a maximum payout. The final score for the CEO was 199% based on the following results: • Non-Performing Assets of only 0.14%, which was top quartile relative to peers and reflects the Company's conservative credit culture • Return on Common Equity of 10.85%, which fell just shy of the top quartile relative to peers but still reflects robust financial returns • Pre-Provision Net Revenue as measured against the Company’s 2024 budget failed to meet target. The budget was set in the fourth quarter of 2023 and was based on a number of critical macro-economic assumptions, including the market consensus at the time that the Federal Reserve would cut interest rates 6 times during 2024. Interest rates remained higher for longer – the first rate cut did not take place until September 2024 – which resulted in lower than budgeted Net Interest Income throughout the year. • The Customer Experience score was 79.6, far exceeding the target of 73, and thereby achieving a rating of Outstanding for this metric • The Committee rated the CEO's individual performance Outstanding for his achievements in pursuing the Company's strategic initiatives, enhancing community presence and reputation, and executing on the Company's succession plan

| Metrics                                                                                                |     | Weight |     |       Target |     |        Actual |     | Score |
| Pre-Provision Net Revenue                                                                              |     | 20%    |