SHORE BANCSHARES INC

This Compensation Discussion and Analysis provides our shareholders with important information regarding the material components of our executive compensation program, including the following:

•A summary of key business results and compensation decisions in 2023;

•A discussion of our 2023 say-on-pay advisory vote;

•An overview of our compensation philosophy;

•A discussion of the governance practices for our executive compensation decisions;

•A review of the process by which NEO compensation decisions are made and the parties involved;

•A description of each element of our NEO compensation program and its purpose;

•A discussion of the Compensation Committee’s 2023 incentive compensation decisions and the key factors that influenced those decisions; and

•An overview of other factors that affect our executive compensation program, including clawbacks and tax considerations.