Board Justification

The primary principles that guide our compensation program are summarized below. 1 Attract and retain Attract and retain talented executives, and motivate them to perform at the highest level and contribute significantly to the Company’s long-term success. 2 Pay for performance Reinforce the Company’s pay for performance culture by making a significant portion of total compensation variable and by differentiating awards based on Company and individual performance in achieving short- and long-term financial and strategic objectives. 3 Emphasize at risk compensation Have a greater percentage of compensation at risk for executives who bear higher levels of responsibility for the Company’s performance. 4 Align with shareholders Align the interests of executives and other stakeholders, including shareholders, customers, and employees, by having a significant portion of the executives’ compensation in stock and requiring executives to hold stock. 5 Support corporate governance Support important corporate governance principles and established best practices.

Board Justification

Awards are calculated based on eligible earnings during the plan year. The PrinPay Plan links annual incentive pay to individual employee results and overall Company performance and profitability as measured by: Non-GAAP operating earnings: Revenue less expenses and taxes. It continues to be a primary indicator of our organization’s financial performance. Managed net cash flow: Represents net cash flows (deposits less withdrawals) we’re managing within Principal. Managed net cash flow can contribute to customer growth and, if positive, increases assets under management. Free capital flow payout ratio: Is an indicator of using capital wisely to drive growth and be seen as an industry leader in driving shareholder value. Free capital flow is the capital generated by each business operation that flows to the enterprise and enables organic reinvestment for growth and external deployment to drive shareholder value. Customer revenue growth: Focuses on revenue growth from customer-driven actions rather than market/macro conditions. Diversity index: Contributes to our ability to create a more inclusive workforce and culture, including attracting, retaining and developing talent to deliver our enterprise strategy, and granting access to boundless opportunity across the enterprise.

Board Justification

All Other Compensation for the Named Executive Officers consists of the following: Perquisites & other personal benefitsa Principal contributions to defined contribution plansb

Board Justification

PSUs vest based on continued service and achieving an average non-GAAP ROE and Operating Margin, each weighted 50%, typically over a three-year period (with each three-year period treated as a “Performance Cycle”).