CWB-Management Proxy Circular-2024-EN

Additional Compensation Disclosure

COMPENSATION OF SENIOR MANAGERS AND OTHER MATERIAL RISK TAKERS The following information on compensation relates to employees who may have a material impact on our risk exposure and is disclosed in conformity with the Basel II, Pillar 3 and Implementation Standard of the FSB Principles and Standards disclosure requirements for remuneration. Under these requirements, senior managers and other employees whose actions could have a material impact on our risk exposure should have a significant portion of variable compensation deferred over a period of years. The purpose of the deferral is to ensure that these individuals are incentivized in a manner that is consistent with our long-term performance and sustainability. The Risk Committee completes a detailed annual review to identify senior managers and other employees who, based on their roles, may have a material impact on our risk exposure. These employees are designated each year by management as Senior Managers and Other Material Risk Takers, based upon a review of the roles and responsibility of each individual. For these purposes, CWB defines “Senior Managers” to include the Executive Committee . “Other Material Risk Takers” include Senior Vice Presidents of CWB and other individuals occupying key roles at CWB Financial Group.

COMPENSATION AWARDED TOTAL DIRECT COMPENSATION AWARDED IN FISCAL 2023 AND 2022

2023

2022

Other Material Risk Takers

Other Material Risk Takers

Senior Managers

Senior Managers

Number of Employees

8

23

11

27

Fixed Compensation

Cash ($)

3,355,600

5,166,722

3,752,708

4,459,233

Variable Compensation (1) Cash ($) (2)

1,877,300

2,067,890

2,406,400

2,088,110

Share and Share-Linked Instruments ($)

-

-

-

-

Share and Share-Linked Instruments (deferred) (3) ($)

3,747,710

3,577,601

4,255,895

4,012,977

Total Variable Compensation ($)

5,625,010

5,645,491

6,662,295

6,101,087

Total Direct Compensation ($)

8,980,610

10,812,213

10,415,003

10,560,320

(1) All Senior Managers received variable compensation awards of shares and share-based awards. (2) This amount includes the total STIP award for each individual, which is prorated to the period of time such individual held their position as a material risk taker or senior manager. (3) Deferred compensation includes stock options, RSUs, and PSUs.

SPECIAL COMPENSATION TOTAL SPECIAL COMPENSATION AWARDED IN FISCAL 2023 AND 2022

2023

2022

Senior Managers

Other Material Risk Takers

Senior Managers

Other Material Risk Takers

Number of Employees

Number of Employees

Number of Employees

Number of Employees

Amount ($)

Amount ($)

Amount ($)

Amount ($)

Sign-on Awards (1)

-

-

-

-

1

1,300,000

2

1,325,000

Guaranteed Awards (2)

-

-

-

-

-

-

-

-

Severance (3)

1

853,875

-

-

2

2,620,400

-

-

(1) Sign-on Awards include any one-time cash, deferred compensation awards, and contributions to the Supplemental Retirement Plan for hiring purposes. Payouts in connection with Sign-on Awards may be made in whole or in part in the year of grant or may be paid in subsequent fiscal years. (2) Guaranteed Awards include all guaranteed incentive awards granted in fiscal 2023 and 2022, including any cash or deferred compensation awards. No individuals were eligible for guaranteed awards in 2022 or 2023. Guaranteed Awards, if applicable, are included in the variable compensation paid in the table entitled “Compensation Awarded” for Senior Managers. (3) Severance includes all payments made due to termination of employment.

Canadian Western Bank- Management Proxy Circular | 64

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