NICOLET BANKSHARES INC

To achieve the objectives of our compensation program, we use a mix of compensation components evaluated individually and in combination, including the following.

•Base salary - competitive fixed pay commensurate with experience and performance (evaluated in context of the industry and our peer group’s base salary levels for equivalent roles);

•Short-term cash incentive - bonus pay represented as a target percentage of salary. For the broader workforce, this represents an annual cash bonus opportunity. For the named executive officers and selected other senior leaders, we set a target percentage of salary that is payable in cash for attainment of goals. We may pay beyond target for over-performance or below target for under-performance against our various metrics and other achievements;

•Long-term equity incentive - for the named executive officers and selected other senior leaders, we set a target percentage of salary that is payable in restricted stock for attainment of goals and vests ratably over a 5-year period. We may pay beyond target for over-performance or below target for under-performance against our metrics and other achievements;

•Company contributions under the NQDC plan - selectively and subjectively awarded as a long-term compensation component, with or without vesting, as approved by the Committee, in support of overall compensation mix objectives, and retention or succession goals;

•Severance and change in control benefits;

•Other benefits, such as 401(k), and other perquisites offered to some or all of Nicolet’s full-time employees.

The Committee determines the level and percentage mix of compensation components it believes is appropriate for each executive, considering specific responsibilities within the Company, and similarly situated executive compensation levels within our peer group companies. We review the talent and expertise necessary to achieve our objectives, and specific expected performance outcomes for the year.

The Committee has a flexible allocation policy for determining the allocation between cash and non-cash compensation for executives in any given year. We utilize target percentages of salary defined for our short-term and long-term annual variable incentive program. See Executive Compensation Components and Decisions - “2025 Short and Long-Term Incentives” for more detail.

The Committee believes that tying executive rewards to equity in Nicolet and other long-term compensation motivates and rewards executives to strive for results that create greater shareholder value over longer term periods, and in addition serves to elevate these organizational dynamics:

•promoting growth, soundness, profitability, risk mitigation, and expense control required to accomplish our strategic long-term plans;

•encouraging consistent superior results by providing a meaningful incentive; and

•supporting elevated collaboration and teamwork among employees.