2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 364 Compensation Discussion and Analysis First American Financial Corporation 2018 Proxy Statement | 23 Executive Compensation Program in Detail Key Pay Elements The following chart summarizes the key pay elements for our NEOs. Each element is described in detail beginning on page 26 in the Section “Pay Elements.” How it Links to Performance FIXED Reviewed annually and adjusted based on individual and Company performance and other factors, including base salary levels at peer companies Variable and based on measurable Company performance against financial targets, subject to discretionary Committee adjustment; target levels reviewed annually and adjusted based on individual and Company performance and other factors, including annual cash bonus levels at peer companies Variable and based on measurable Company performance against financial targets, subject to discretionary Committee adjustment; target levels reviewed annually and adjusted based on individual and Company performance and other factors, including annual equity bonus levels at peer companies Variable and based on Committee assessment of Company and individual performance together with compensation levels at peer companies and other factors Compensation Element Purpose Base Salary To provide a fixed source of income AT-RISK Annual Cash Bonus To reward the achievement of annual performance Long-Term Equity Incentive To incentivize for long-term Company performance Annual Equity Bonus To reward the achievement of annual performance FIRST AMERICAN FINANCIAL CORPORATION