Three-year relative TSR
We compared the TSR of CWB common shares over the three-year performance period against the TSRs of a basket of performance comparators during the same performance period. We calculated TSR using a 30-day volume weighted average price (VWAP) (calendar, not trading), ending on October 31 in the year of vesting. The peer group for determining relative TSR to calculate the PSU performance multiplier for fiscal 2021 grant follows:
PSU Peer Group for Determining Relative TSR
Comparator
Weighting
S&P/TSX Capped Financials Index
60%
S&P Canada Small Cap Index
40%
Our performance was measured against the constituents of each of the S&P/TSX Capped Financials Index and the S&P Canada Small Cap Index. Companies in the S&P Canada Small Cap Index operate in similar markets and have similar market capitalization and share price volatility characteristics as CWB, while companies in the S&P/TSX Capped Financials index include CWB’s closest business peers and other capital market peers in the financial services sector.
Performance multiplier will be calculated according to the following schedule, with linear interpolation determined between the percentile ranks shown below:
CWB’S TSR Ranking
Performance Multiplier
25 th Percentile and below
50%
50 th Percentile
100%
80 th Percentile and above
150%
If CWB delivers negative TSR during the performance period but is ranked above the 50 th percentile, the performance multiplier will be reduced to 100%.
Strategic initiatives
We determined the strategic initiatives component by analyzing CWB performance against the medium-term strategic initiatives set at the time of grant, consistent with our strategic direction. We established a performance rating scale to assess the degree of goal attainment on each strategic initiative. The PSU performance multiplier for the strategic initiatives component was:
Assessment of Goal Attainment
Performance Multiplier
Exceptional Performance
125 – 150%
Above Expectations
105 – 125%
Met Expectations
95 – 105%
Below Expectations
50 – 95%
At the end of the performance period, the HR Committee evaluated management’s performance on each strategic initiative and determine d the appropriate performance multiplier.
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