MERCER INTERNATIONAL INC

Our executive compensation program provides that a majority of compensation awarded to our named executive officers (or "NEOs"), especially our Chief Executive Officer and, also in 2023, our former Executive Chairman, is variable, performance-based compensation and "at risk". The percentage of our executives' compensation opportunity that is variable or at risk versus fixed is based primarily upon the executive's role and, to a lesser extent, geographic location. Generally, executives with more ability to directly influence overall performance have a greater portion of pay at risk through both short- and long-term incentive programs. Further, as a result of local market practices and customs, our North American executives generally have a greater portion of their compensation at risk, including the opportunity to earn greater rewards, than our European-based executives.

The graph below shows the balance of the elements that comprised total direct target compensation for our former Executive Chairman, Chief Executive Officer and our other NEOs, as a group, paid in 2023, including the percentage of variable compensation. The percentage of variable compensation listed below each chart is calculated by dividing (i) the

xiii value of variable target compensation by (ii) the amount of total direct target compensation, which includes variable compensation plus fiscal 2023 base salary.

Fiscal 2023 Total Direct Target Compensation Paid

(1)

David Ure stepped down as Chief Financial Officer and Secretary effective May 31, 2023. Richard Short was appointed as Chief Financial Officer and Secretary on June 1, 2023. Each of Mr. Ure's and Mr. Short's employment compensation for fiscal 2023 are included in "All Other NEOs".