Company: OSBC
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001558370-25-005000
Chunk: 47

Company: OLD SECOND BANCORP INC
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 47
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 for any corporate goal, no further incentive above the maximum incentive for such corporate goal is earned. Actual performance between threshold, target and maximum performance levels will be interpolated to determine the amount of payment based on relative achievement of the corporate objectives. How we defined each of these corporate objects is set forth below. Adjusted Net Income Growth Each named executive officer had a portion of their annual incentive tied to this performance objective in 2024. The Compensation Committee believes that our growth, as measured by our Adjusted Net Income, is an appropriate performance measure because it focuses on our financial performance, which in turn affects stockholder value. See page 50 for the reconciliation of this non-GAAP measure to GAAP Net Income. In addition, the Compensation Committee determined to use a return on average assets (“ROAA”) metric for our performance, defined as net income divided by average assets, as compared to our peer group. The ROAA metric superseded the Adjusted Net Income performance metric if we performed as well as, or better than, the median ROAA of our peer group.

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The Compensation Committee applied the following scale to determine how much of the total assigned weight for this performance objective each named executive officer could receive based on our net income:

| ​                   | ​ | ​                               | ​ |          ​ | ​    |
| ​                   |   | ​                               |   | Percent of |      |
| ​                   | ​ | ​                               | ​ |   Assigned | ​    |
| Adjusted Net Income | ​ | Notes                           | ​ | Weight (%) |      |
| $66.9 million       |   | 75% of 2024 budgeted net income |   |         40 | (1)​ |
| $75.8 million       |   | 85% of 2024 budgeted net income |   |         60 | ​    |
| $84.8 million       |   | 95% of 2024 budgeted net income |   |         80 | ​    |
| $89.2 million       |   | 2024 budgeted net income        |   |        100 | (2)​ |
| ROAA                |   | > 50% of peer group median ROAA | ​ |         75 | ​    |
| ROAA                |   | > 60% of peer group median ROAA |   |        110 | ​    |
| ROAA                |   | > 75% of peer group median RO