PROSPERITY BANCSHARES INC (PB)

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2026 Annual Meeting Analysis

PROSPERITY BANCSHARES INC · Meeting: April 21, 2026

Policy v1.2medium confidenceView Filing ↗
For informational purposes only. This AI-generated analysis applies a published voting policy to publicly available proxy filings. It does not constitute investment advice, proxy voting advice, or a solicitation of any kind. AI analysis may be incomplete or inaccurate — always review the actual filing and make your own independent decision.

Directors FOR

3

Directors AGAINST

1

Say on Pay

FOR

Auditor

FOR

Director Elections

Election of four (4) Class I directors to serve on the Board of Directors of the Company until the Company's 2029 annual meeting of shareholders

3 FOR/1 AGAINST

Against Analysis

✗ AGAINST
Perry Mueller, Jr.familial relationship to CEO

Dr. Mueller is explicitly identified in the proxy as the father-in-law of CEO David Zalman; under the voting policy, a director with a familial relationship to senior management — especially the CEO — warrants a No vote regardless of other qualifications, as this relationship compromises the independence necessary for effective board oversight.

For Analysis

✓ FOR
Kevin J. Hanigan

Hanigan has served since November 2019 (over 24 months), has strong banking industry credentials with 37+ years of Texas banking experience, attendance is fully compliant, and the TSR underperformance gap of -29.9pp versus the company-disclosed peer group median does not meet the 35pp trigger threshold required for a 'low positive' absolute 3-year TSR, so no performance flag fires.

✓ FOR
William T. Luedke IV

Luedke has served since April 2014 with relevant legal and financial institution advisory experience, attendance is compliant, and the peer-group TSR gap of -29.9pp does not meet the 35pp threshold required to trigger a vote against given Prosperity's low-positive absolute 3-year TSR of 16.1%.

✓ FOR
Harrison Stafford II

Stafford has served since April 2000 with relevant auditing and legal experience, chairs the Audit Committee as a designated financial expert, attendance is compliant, and the peer-group TSR gap of -29.9pp does not meet the 35pp trigger threshold given the company's low-positive absolute 3-year TSR.

Three of four nominees receive a FOR vote. Perry Mueller Jr. receives an AGAINST vote solely because he is the father-in-law of CEO David Zalman, a familial relationship to the top executive that the voting policy treats as a governance concern warranting a No vote. The remaining three nominees — Hanigan, Luedke, and Stafford — all pass the TSR, qualifications, attendance, and independence screens. The company's 3-year stock return of 16.1% lags the disclosed compensation peer group median by 29.9 percentage points, which falls short of the 35-percentage-point threshold needed to trigger a vote against directors under the low-positive TSR policy band, so no TSR flag applies to any director.

Say on Pay

✓ FOR

CEO

David Zalman

Total Comp

$3,434,273

Prior Support

95%%

CEO David Zalman's total compensation of $3,434,273 for 2025 is reasonable for the head of a $6.6 billion market-cap regional bank, reflecting a significant reduction from his 2024 total of $5,659,475 (which included a large one-time restricted stock grant); the pay structure includes a meaningful mix of variable components — annual incentive bonus, equity awards, and discretionary bonus — that together represent more than half of total compensation, generally satisfying the pay-mix test. The prior year's Say-on-Pay vote received 95% shareholder support, the company successfully addressed the single prior concern (a single-trigger change-in-control provision that was amended to a double-trigger), and the incentive plan uses nine quantitative financial metrics including total return, earnings per share growth, return on equity, and efficiency ratio, which are appropriate performance-based conditions for a banking company. While Prosperity's stock has underperformed the community bank sector benchmark (QABA — First Trust NASDAQ ABA Community Bank Index) and the disclosed peer group over three years, the incentive compensation targets and payouts appear calibrated to company-specific financial performance rather than being awarded regardless of outcomes, and overall pay levels do not appear materially excessive relative to the role and company size.

Auditor Ratification

✓ FOR

Auditor

Deloitte and Touche LLP

Tenure

N/A

Audit Fees

N/A

Non-Audit Fees

N/A

Deloitte and Touche LLP is a Big 4 firm that is appropriate for a company of Prosperity Bancshares' size and complexity (market cap approximately $6.6 billion). The proxy filing does not provide a detailed auditor fee table with separate audit and non-audit fee figures that can be extracted from the provided text, so the non-audit fee ratio trigger cannot be evaluated — under the policy, the tenure trigger also requires confirmed data to fire and tenure is not disclosed in the available text, so no trigger fires and the default FOR vote stands.

Overall Assessment

The 2026 Prosperity Bancshares annual meeting presents three standard proposals: director elections, auditor ratification, and an advisory Say-on-Pay vote. The ballot is straightforward with one notable governance concern — director nominee Perry Mueller Jr. is the CEO's father-in-law, triggering an AGAINST vote under the familial-relationship policy, while all other proposals receive FOR votes as no material policy triggers fire on compensation structure, auditor independence, or TSR underperformance thresholds.

Filing date: March 16, 2026·Policy v1.2·medium confidence

Compensation Peer Group

26 companies disclosed in 2026 proxy filing

ASBAssociated Banc-Corp
BANCBanc of California
OZKBank OZK
BKUBankUnited, Inc.
BOKFBOK Financial Corporation
CADECadence Bank
COLBColumbia Banking System, Inc.
CBSHCommerce Bancshares, Inc
CFRCullen Frost Bankers, Inc.
EWBCEast West Bancorp, Inc.
FIBKFirst Interstate BancSystem, Inc.
FNBF.N.B. Corporation
FULTFulton Financial Corporation
GBCIGlacier Bancorp, Inc.
HWCHancock Whitney Corporation
ONBOld National Bancorp
PNFPPinnacle Financial Partners, Inc.
SSBSouthState Corporation
SNVSynovus Financial Corp.
TCBITexas Capital Bancshares, Inc.
UMBFUMB Financial Corporation
UBSIUnited Bankshares, Inc.
UCBIUnited Community Banks, Inc.
VLYValley National Bancorp
WAFDWaFd, Inc.
WTFCWintrust Financial Corporation