U.S. Mid-Cap Banks: Incentivizing Performance

Research evidence excerpt

U.S. Mid-Cap Banks: Incentivizing Performance

Equity Research

U.S. Mid-Cap Banks

22 May 2026

Incentivizing Performance

We reviewed all of our companies' proxy statements so you

don't have to, and highlight our key takeaways.

POSITIVE

Summary: We did a deep dive into the proxy statements for our companies under coverage, as

we believe pay structures and incentives are important components to help understand U.S. Mid-Cap Banks

company goals and targets. We have organized our findings by breakdowns of base salary vs. Jared Shaw

incentives, short-term incentive plans (STIP) vs. long-term incentive plans (LTIP), target +1 617 342 4101

jared.shaw@barclays.comweightings for the STIP and LTIP, quantitative vs. qualitative metrics, outliers to other

BCI, US

compensation structures, and Form 4 insights. Continue reading for individual company

analysis. We have omitted WBS from our report due to the pending merger with Santander. We Jonathan Rau

do reference 26 companies under our coverage, which includes WBS, but do not take WBS into +1 617 342 4283

jonathan.rau@barclays.comaccount for comparative analysis.

Structures and incentives that we believe are favorable generally had higher weightings to Emily Rodriguez

quantitative performance and utilized metrics that we believe align with shareholders. In +1 212 526 7180

particular, we liked ONB, FIBK, and PNFP. In 2025, 100% of ONB's STIP was based on adjusted emily.rodriguez@barclays.com

EPS, the only bank in our coverage to exclusively use this metric to inform the STIP payout. We BCI, US

like the use of the EPS metric and with the STIP not including any qualitative metric to measure

performance, we view the structure favorably compared to the rest of the group. Additionally,