FACTSET RESEARCH SYSTEMS INC

The Compensation Committee considers the following when assessing the amount and form of compensation to be awarded to each of our NEOs and in structuring the Company's executive compensation program:

Current operating results and progress towards future growth

The Compensation Committee considers both current operating results from the most recent fiscal year as well as long-term financial goals. The Compensation Committee considers current operating results in an effort to ensure executive pay reflects the Company’s recent performance and to motivate executives to deliver strong financial outcomes. The Compensation Committee takes into account progress towards future growth goals to encourage executives to make decisions that benefit the Company over the long term and to further align executives' interests with stockholders.

For FY26, a substantial portion of NEO compensation was subject to achieving both short-term (annual) and long-term (3-year) performance objectives that enhance stockholder value. In addition, cash incentive compensation rewards annual performance, while equity-based compensation promotes an ownership mindset for the long-term. Equity-based compensation represents a significant portion of total compensation for our NEOs, and for all of these, NEOs are aligned with appreciation in our common stock price.

Defined qualitative factors in addition to quantitative financial metrics

In addition to the financial metrics in the annual and long-term incentive plans, each NEO also has non-financial objectives that are set every year and focus the NEO’s efforts on specific business needs. These objectives may include leadership, talent development, special assignments, project management, governance objectives, engagement in global offices, exposure to employees, key clients, investors and analysts, and other specific individual performance objectives. The NEO’s achievement of certain goal levels as well as other accomplishments made during the year guide and influence the NEO’s salary, target annual incentive and equity award.

Attraction and retention of talented personnel

We operate in several highly competitive labor markets and design executive compensation to remain competitive with peers in the technology and financial information industry.

Compiled Benchmark Data

The Compensation Committee's independent compensation consultant and FactSet's Chief People and Workforce Transformation Officer prepare benchmarking and competitive data on historical compensation and our defined peer group and surveys of other companies. The Compensation Committee uses this information in establishing NEO compensation programs and parameters. Annually, the Compensation Committee is provided executive compensation data of similarly situated named executive officers at the companies in the identified peer group and surveys of other companies, including detail on salary, annual incentive and equity awards. This market review includes an analysis of compensation levels (e.g., competitiveness of base salary, annual incentive, and long-term incentives) and incentive program design (e.g., appropriateness of performance measures, annual incentive program targets and measures, long-term incentive plan targets, and compensation methods).

Based on various benchmarking data, the Compensation Committee found a competitive pay gap for our NEOs, which the Committee sought to address when designing our fiscal 2026 compensation program and determining our executive compensation levels for fiscal 2026. The Committee also took into account the increasing competition for talent and the need to recruit and retain top talent to help us accomplish our long-term goals.

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