Principal: Empowering People to Drive Positive Change for the Future

At Principal®, we are drawn to people who bring unique perspectives, passion, and expertise to help us advance the financial security and well-being of our customers, transform our growing business, and drive positive change in the communities where we live and work. As part of our collaborative culture, we prioritize diversity, equity, and inclusion (DEI), shared values, and genuine support for every employee around the world. All our employees contribute to a thriving environment of authenticity, action, and accountability—which reverberates within our company and our communities.

Principal has a long-standing commitment to DEI. We added our first person of color to our Board of Directors almost 45 years ago, and one year later, we added the first female to our Board. Our longest-serving female Board member joined in 1992 and retired after 30 years of service in 2022. Today, 67% of our Board members are diverse in their gender, race, or national origin. Forty-seven percent of management positions are filled by women, and 54% of our global workforce are women. People of color make up 16% of our U.S. workforce, a 14.4% growth rate over the last five years.

Pay equity is central to our compensation practices and policies. We conduct an annual global pay audit to identify unexplained differences in pay between employees doing similar work in commensurate positions. To ensure that the findings are objective, a credible third-party conduct the audit. On a global level, our pay review and evaluation includes a gender pay gap assessment. In the U.S., where most of our employees are based, our pay review and evaluation includes both a gender and a racial pay gap assessment. While we do not currently disclose the specific results of our pay review and evaluation, we continue to be proud of our gender and racial pay equity performance, which support that our pay aligns with our stated non-discriminatory compensation philosophies.

To promote pay transparency, in 2022 we began posting the minimum and maximum salary ranges for all open positions in the U.S.—both internally and externally. We believe that disclosing the salary range for all U.S.-based open positions is not only crucial to giving individuals more agency, especially women and people of color, but it is also a necessary step to reducing pay disparities, creating a fair application and recruitment process, and finding highly qualified candidates.

Our commitment to fair hiring practices goes beyond compliance with equal employment opportunity commission (EEOC) regulations. We have initiatives that attract, retain, and promote women and other diverse employees. We are proud of our recruiting efforts; as of December 31, 2023:

• Women at VP level and above comprise 36% in the U.S. and 35% globally

• 51% of our new hires were women in 2023

• Women represent 57% of our U.S. employees and 54% global employees

As a result of our current DEI efforts, Principal was recognized in 2023 for the following: one of America’s Best Employers for Diversity (Forbes); 2023 Gender Equality Index Award (Bloomberg); Top Companies for Executive Women (Seramount); The Best Employers for Women (Forbes); 2023 Breakfast of Corporate Champions (Honoring over 40% women on board) (Women’s Forum of New York); and 2023 SeeHer B2 Gender Equality Measure Award (Association of National Advertisers).

Principal Real Estate (the commercial real estate trade name of Principal Real Estate Investors, LLC, of Principal Asset Management^SM) seeks to provide educational opportunities to continue attracting and retaining diverse candidates to commercial real estate. Principal Real Estate has established a scholarship program in 2020 for students who are members of a minority group, veterans, have a disability, or have financial need. The scholarship offers up to $7,500 per student per year, renewable for up to four years. Through 2023, 11 students have been awarded scholarships since its inception.  Principal also offered the following to help us reach our CREW Network’s CRE Pledge for Action:

Principal Asset Management^SM is a trade name of Principal Global Investors, LLC. Principal Real Estate is a trade name of Principal Real Estate Investors, LLC, an affiliate of Principal Global Investors.Principal Global Investors^®leads global asset management and is a member of thePrincipal Financial Group^®, Des Moines, IA 50392.

Principal®, Principal Financial Group®, Principal Asset Management, and Principal and the logomark design are registered trademarks and service marks of Principal Financial Services, Inc., a Principal Financial Group company, in various countries around the world and may be used only with the permission of Principal Financial Services, Inc. 2875650-082023