ISBC 2017 Form 10-K & 2018 Proxy Statement

40 The individual goals established by the Compensation and Benefits Committee were therefore aligned with each Named Executive Officer's area of responsibility at Investors Bancorp and related to the successful implementation of our strategic initiatives. For 2017, each Named Executive Officer's individual goals were related to the following: • Messrs. Cummings’ and Cama’s individual goals included achieving certain deposit growth, maintaining loan quality versus peers and promoting Investors Bancorp to various audiences, including but not limited to: stockholders, regulators and communities. In establishing the individual goals of both Messrs. Cummings and Cama the Compensation and Benefits Committee considered the following for each: o Deposits are the primary source of funds used for our lending and investment activities. Deposits are essential to fund our continued growth. o One of the Company’s key operating objectives has been, and continues to be, maintaining a high level of loan quality to ensure that Investors Bancorp does not take any undue risk. • Mr. Spengler’s individual goals included achieving certain loan growth, maintaining loan quality versus our peers, and growing deposits for new loan customers. • Mr. Kalamaras’ individual goals included achieving certain deposit and non-deposit investment product growth, and enhancing retail risk management. • Mr. Burke's individual goals were related to customization of our ALM model and profitability system, CECL implementation planning, DFAST process enhancements and submission, and tax structure review. 2017 Incentive Achievement For 2017, the net income utilized for evaluation of the corporate goal achievement was $179.6 million, which was slightly below the Maximum achievement level. In determining net income for 2017, the Compensation and Benefits Committee made adjustments due to events that were considered extraordinary, unusual or non-recurring, as permitted under our Incentive Plan. Specifically, these adjustments were due to the impact to our income tax expense related to the enactment of the Tax Cuts and Jobs Act on December 22, 2017, as well as severance and branch closure costs related to the workforce reduction and branch closures announced in December 2017. The adjustments were as follows: 2017 Net Income $ 126,744 Severance benefits/branch closure costs 3,702 Tax reform impact 49,164 Adjusted net income $ 179,610 PROXY STATEMENT