Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Adoption of Bonus Plans
On
The Executive Officer Plan provides for cash bonuses for:
The maximum amount that can be allocated to the bonus pool is
Payment from the bonus pool under the plan, if any, is based on the achievement of targets under the following metrics for 2023:
25.0% Earnings per share 12.5% Return on assets 12.5% Return on equity 12.5% Net interest margin 12.5% Efficiency ratio 12.5% Non-performing assets 12.5% Wholesale funds
The specific targets for each metric will be established by the Compensation Committee of Mercantile's Board of Directors.
Each individual target must be met or exceeded in order for the percentage
associated with that metric to be credited toward payment from the bonus pool
under the plan. The accumulated percentage for each individual target attained
will be applied to the bonus pool amount to determine the total amount of the
bonus pool to be awarded (the "Award Amount"). For example, if the first four
factors are attained and the next three factors are not attained, and if the
maximum amount is allocated to the bonus pool under the Executive Officer Plan,
the Award Amount would be
The Award Amount will be paid to each participant pro rata based on a uniform
percentage of the participant's 2023 salary (not to exceed: 55% of the 2023
salary of the Chief Executive Officer; 50% of the 2023 salary of the President
of the Bank; 40% of the 2023 salary of the Chief Financial Officer; 30% of the
2023 salary of the Human Resources Director; and 20% of the 2023 salary of the
Chief Risk Officer). Any bonus awards that are earned under the plan will be
paid to the executive officers on or before
Payments under the plan are subject to specified conditions, qualifications, and clawback provisions. The plan, to the extent provided for in the plan, may be amended by the Compensation Committee of Mercantile's Board of Directors.
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A copy of the Executive Officer Plan is attached as Exhibit 10.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit Number Description 10.1 2023 Mercantile Executive Officer Bonus Plan 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 3
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