The Compensation Committee reviews our compensation plans and policies to ensure that they do not encourage unnecessary risk-taking and instead encourage behaviors that support sustainable value creation. In 2024, the committee, with the assistance of FW Cook, reviewed the company’s compensation policies and practices for employees, including NEOs, and believes that our compensation programs are not reasonably likely to have a material adverse effect on the company. We believe the following factors reduce the likelihood of excessive risk-taking:
| • | The program design provides a balanced mix of cash and equity, short-term and long-term incentives, fixed and performance-based pay, and performance metrics |
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| • | Maximum payout levels for incentive awards are capped |
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| • | The Compensation Committee has downward discretion over cash incentive program payouts |
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| • | Executive officers are subject to share ownership guidelines |
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| • | Compliance and ethical behaviors are integral factors considered in all performance assessments |
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| • | The company has adopted policies prohibiting hedging and pledging by executives and directors |
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| • | The company maintains a compensation recovery policy |
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