2018 Guide to Effective Proxies

2.17.4 Compensation mix | 339 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES Our executive compensation programs are discussed in more detail in the “Compensation Discussion and Analysis” and “2017 Executive Compensation Tables and Compensation Information” sections of this Proxy Statement. PAY MIX IN THE COMPENSATION PROGRAM Our executive compensation program focuses on the achievement of annual and long-term goals that generate sustained company performance and strong returns to our shareholders. As illustrated in the following chart, a significant portion of total target compensation is at-risk, subject to company and individual performance: 63% of total target compensation for the Executive Chairman, 74% for the President & CEO and 62% for the other NEOs. PAY MIX IN THE EXECUTIVE COMPENSATION PROGRAM Each element, at target, as a % of base pay Base Pay - (Fixed) Total Short-Term Cash Incentive (% of base pay) Equity Incentive- Performance Shares (% of base pay) Equity Incentive- Restricted Stock (% of base pay) Variable at-risk Performance Based Base Pay Base Pay 80% 40% 40% Base Pay 74% at-risk 63% at-risk 62% at-risk Other NEOs President & CEO Executive Chairman 100% 92.5% 92.5% 42.5% 42.5% 85% 6 | 2018 PROXY STATEMENT POPULAR, INC.