ࡱ>  l \pThe Free Software Foundation B=PF0*8X@"1 Helvetica1Courier1 Courier New1 Courier New1 Helvetica$#,##0_);($#,##0)$#,##0_);[Red]($#,##0)$#,##0.00_);($#,##0.00)$#,##0.00_);[Red]($#,##0.00)-**_($* #,##0_);_($* (#,##0);_($* "-"_);_(@_)*)'_(* #,##0_);_(* (#,##0);_(* "-"_);_(@_)5,2_($* #,##0.00_);_($* (#,##0.00);_($* "-"??_);_(@_)2+/_(* #,##0.00_);_(* (#,##0.00);_(* "-"??_);_(@_)2$#,##0.00;[Red]$#,##0.003$#,##0.00;[Red]($#,##0.00)4$#,##0;[Red]($#,##00)50.00%;[Red](0.00%)6 0%;[Red](0%)7#,##0.00;[Red](#,##0.00)8#,##0;[Red](#,##0)                + ) , *   Ј ~~ ؈ ~~#؈ ~~ ؈ ~~7#܈ ~~8#܈ ~~"؈ ~~4#܈ ~~9#܈ ~~83ffff̙̙3f3fff3f3f33333f33 B Riley Financial Inc!RTo be held on July 26 2018%To be held on July 26 2018 (1)I'Revocation of Proxies&0Information Regarding Directors<Audit and All Other Fees$FBoard Role in Risk ManagementUSummary Compensation`Summary Compensation (1)Stock Option Grants Outstanding Equity Awards Stock Vested&ĹPayments Due Upon Termination o$Elements of 2017 Compensation&OB Riley Amended and Restated 20NO TITLE&FBR Co Amended and Restated 200C NO TITLE (1) Director Compensation+ NO TITLE (2)V3Beneficial Ownership$IREPORT OF THE AUDIT COMMITTEEQ OTHER MATTERS l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??To be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } $ } +       B. Riley Financial, Inc.DEF 14A 06/20/2018 B. Riley Financial, Inc. Sincerely,    Bryant R. Riley , $Chairman and Chief Executive Officer  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/&;@wk_=%=PF0*8X> @ l  %o  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial Inc To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } $ } $} 8 %      B. Riley Financial, Inc.DEF 14A 06/20/2018#To be held on July 26, 2018~ 3+To elect eight (8) directors to hold office  6 .for a one year term to expire at the Company?s  / '2019 Annual Meeting of the Stockholders  1 )or until their successors are elected and   duly qualified.   ~  0(To ratify the selection of Marcum LLP as,$the Company?s independent registered2*public accounting firm for the fiscal year!ending December 31, 2018.~ 3+To amend the Company?s Amended and Restated0(Certificate of Incorporation to increase1)the number of authorized shares of common/'stock of the Company from 40,000,000 to~ ~ 3+To approve our 2018 Employee Stock Purchase Plan.~ 7/To transact such other business as may properly2*come before the meeting or any adjournment or postponement thereof.D lth\ n!|44P*h !"#$ !$"____________________________1#)Created by Morningstar Document Research.0$(http://documentresearch.morningstar.com/ P=PF0*8X> @$$##"" l  &  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } $ } +       B. Riley Financial, Inc.DEF 14A 06/20/2018#To be held on July 26, 2018+#By Order of the Board of Directors,    Bryant R. Riley , $Chairman and Chief Executive Officer  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/&W@th\! f=PF0*8X> @ l  '0  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } $ } U} 8       B. Riley Financial, Inc.DEF 14A 06/20/2018Revocation of Proxies~ 7/by revoking it in person at the Annual Meeting; ~ . &by writing, delivered to our Corporate  - %Secretary at 21255 Burbank Boulevard,  - %Suite 400, Woodland Hills, California  * "91367 before the proxy is used; or ~ 0 (by a later dated proxy card delivered to0(us at the above noted address before theproxy is used.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.0znb x/O=PF0*8X> @ l  ;  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of ProxiesAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } a} $ } } $ } 6       B. Riley Financial, Inc.DEF 14A 06/20/2018'Information Regarding Directors Name Age Committees Bryant R. Riley ~   None.  Andrew Gumaer ~   None. Thomas J. Kelleher ~   None. Robert L. Antin ~   Compensation Committee Robert D?Agostino ~  5 -Compensation Committee*, Corporate Governance CommitteeMichael J. Sheldon~ Compensation Committee Todd D. Sims~ Audit CommitteeMikel H. Williams~ -%Audit Committee, Corporate Governance Committee*$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4|pdX i51wk_7=PF0*8X> @ l  _E  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } $} $ }  } $ }  } $                      B. Riley Financial, Inc.DEF 14A 06/20/2018 Audit and All Other Fees Fiscal 2016 Fiscal 2017 Audit Fees (1) ~ j,  ~ "N  Audit-Related Fees (2)  ~    ~ &{  Tax Fees   -    -  All Other Fees   -    -  TOTAL ~ h/  ~ U $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*khwk_ z=PF0*8X> @J      l  $uST  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } $} $ } 8 $      B. Riley Financial, Inc.DEF 14A 06/20/2018%Board Role in Risk ManagementBoard/Committee'Primary Areas of Risk Oversight  Full Board / 'Risks and exposures associated with our  3 +business strategy and other current matters  7 /that may present material risk to our financial  - %performance, operations, prospects or    reputation.Audit Committee4,Overall risk management profile and policies0(with respect to risk assessment and risk6.management, material pending legal proceedings/'involving the Company, other contingent/'liabilities, as well as other risks and1)exposures that may have a material impact$on our financial statements.Compensation Committee6.Risks and exposures associated with management6.succession planning and executive compensation,$programs and arrangements, includingincentive plans.&Corporate Governance Committee4,Risks and exposures associated with director2*succession planning, corporate governance,( and overall board effectiveness.D l~rfZdux-U1w/i !"# $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/ <=PF0*8X> @##""!! l  _  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } a} $ } $4} $ } } $       B. Riley Financial, Inc.DEF 14A 06/20/2018Summary Compensation NamePosition Age Bryant R. Riley , $Chairman and Chief Executive Officer  ~   Thomas J. Kelleher   President  ~   Phillip J. Ahn 3 +Chief Financial Officer and Chief Operating  ~     Officer  Andrew Gumaer + #Chief Executive Officer of GAG, LLC  ~  Alan N. Forman1)Executive Vice President, General Counsel~  and SecretaryHoward Weitzman/'Senior Vice President, Chief Accounting~ Officer$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0{ocwwL9|QE=PF0*8X> @ l  $E  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationStock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } !} $ } } $ }  } $ }  } $ }  } $ } y} $ } y} $ $      B. Riley Financial, Inc.DEF 14A 06/20/2018Summary Compensation    Non-Equity           Stock   Incentive Plan     Name and Principal        Bonus ($)    Awards ($)   Compensation ($)      Position (1)  Year   Salary ($)   (2) (3)  ~   ~     Total ($)  Bryant R. Riley ~   ~ /   ~     ~ $   ~ WB   ~ ׊   Chairman and ~   ~ O   ~    ~ f   ~ $   ~ f"m Chief Executive Officer~ ~~ O~     ~  4~ ~ RF     Phillip J. Ahn~ ~ /~  l   ~  O~ #~ NChief Financial Officer~ ~ "~     ~   ~ B'~ &ZG#and Chief Operating Officer~ ~~ "~     ~  N ~ R5~ >      Andrew Gumaer~ ~ ~  V!    ~  ^~ zP'~ `Chief Executive Officer~ ~ O~     ~  ~ $~ @d of GAG, LLC~ ~~ O~     ~  ~ ~ "=     Thomas J. Kelleher~ ~ f~     ~  ^~ *~ Vc President~ ~ ~     ~  ~ -~ S~ ~~ ~     ~  ~ v#~ NI     Alan N. Forman~ ~ ve~  l   ~   ~ +!~ vE Executive Vice President~ ~ m~     ~  ~ $~ N?and General Counsel~ ~~ 2 ~     ~  Z~ 5 ~  D.l{ocT(x=)T+  !"# $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/ <=PF0*8X> @r##""!!        l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Outstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } a} $ }  } $ }  }  $ }  } $ } y} $ }  } $ }  } $       B. Riley Financial, Inc.DEF 14A 06/20/2018Stock Option Grants     All Other     1 )Estimated Future Payouts under Non-Equity   Stock          Incentive Plan Awards   Awards:                    Number of    Grant Date     Grant Date    Threshold   Target   Maximum   Units of    Fair Value  Name ~   ~   ~   ~    (#)   ($) (1) Bryant R. Riley 6/13/2017~   ~  2)  ~ eR~ \~ $     Phillip J. Ahn 6/13/2017~   ~     ~ "@,~ n.~ O      Andrew Gumaer 6/13/2017~   ~  j  ~ 0~  z~ ~     Thomas J. Kelleher 6/13/2017~   ~    ~ zG5~  z~ ~     Alan N. Forman 6/13/2017~ ^&  ~  r  ~ 2)~ ~  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/< |pdwt'2y=PF0*8X> @                 l  ,  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option Grants Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } a} $ }  } $ } y} $                              B. Riley Financial, Inc.DEF 14A 06/20/2018!Outstanding Equity Awards Number ofMarket Value of   Units of Stock   Units of Stock     That Have Not    That Have Not    Vested   Vested  Name  (#)(1)  ~   Bryant R. Riley  ~    ~ H Phillip J. Ahn~ f~ bL$ Andrew Gumaer~ ~ _-Thomas J. Kelleher~ ~ _-Alan N. Forman~  ~ 9$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/: vj^Ti*=PF0*8X> @j          l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } a} $ }  } $ }  } $                             B. Riley Financial, Inc.DEF 14A 06/20/2018 Stock Vested Number of   Shares   Value Realized  Name   Acquired on    on Vesting ~   (#)  ~   Bryant R. Riley  ~ f   ~           Phillip J. Ahn~ ~   Andrew Gumaer~ ~ n Thomas J. Kelleher~ ~ n Alan N. Forman~ ~~ & $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8wk9_u 2t=PF0*8X> @R        l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock VestedElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } a} $ }  } $ } y}  $ }  } $ }  } $ }  } $ } y} $       B. Riley Financial, Inc.DEF 14A 06/20/2018aYPayments Due Upon Termination other than for Cause, including Following Change in Control   Non-Equity     Cash   Stock   Incentive Plan    All Other          Payment   Awards    Compensation    Compensation   Benefits   Total  Name ~   ~   ~   ~   ~   ~   Bryant R. Riley  ~ $   ~ H   ~ 2)   ~ :   ~ n   ~ B  Phillip J. Ahn  ~ j   ~ bL$   ~     ~ K   ~ n   ~ z1T  Andrew Gumaer~ ~ _-  ~  j  ~ ^~ n~ eThomas J. Kelleher~ ~ _-  ~  R  ~ ^~ n~ ngAlan N. Forman~ b~ 9  ~  r  ~ 8~ ~ F$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0 B6*0,"P=PF0*8X> @              l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination o!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } $} $ } 0} $ } 0       B. Riley Financial, Inc.DEF 14A 06/20/2018%Elements of 2017 CompensationElement DescriptionFunction  Base Salary  Fixed cash compensation . &Provides basic compensation at a level    . &consistent with competitive practices;    0 (reflects role, responsibilities, skills,    . &experience and performance; encourages      retention&Performance-Based Cash Bonuses0(Cash bonuses earned based on performance-%Motivates and rewards for achievement/'under the terms of the Management Bonus/'of annual company financial performance%Plan (?B. Riley Bonus Plan?). goal$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2,~rfZX0I=1 =PF0*8X> @ l  y  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } 0.} $ }  } $ } }  $ } y} $                                B. Riley Financial, Inc.DEF 14A 06/20/2018?7B. Riley Amended and Restated 2009 Stock Incentive Plan Plan Category Number of Weighted-  Number of Securities     Shares to   Average   Remaining Available   be Issued Upon   Exercise   for    Exercise of   Price of   Future Issuance    Outstanding    Outstanding   Under   Options,   Options,   Equity Warrants andWarrants  Compensation PlansRights and Rights  (excluding securities (a)(b)(3)   reflected in   column (a))   (c)-%Equity compensation plans approved by~ "[0~   ~  u our stockholders (1).&Equity compensation plans not approved~ ~   ~   by our stockholders (2) Total~ "[0~   ~  u $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>6 0dXL@lXF0iI^w=PF0*8X> @                    l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } U} $4       B. Riley Financial, Inc.DEF 14A 06/20/2018NO TITLE~ .&Includes our Amended and Restated 2009  Stock Incentive Plan.~ 1 )All of our equity compensation plans were % approved by our stockholders.~ 2 *Awards listed in column (a) are restricted 3 +stock unit awards, which have no associatedexercise price.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,]|{o/F=PF0*8X> @ l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } 0.} $ } y} $ } }  $ } y} $                                B. Riley Financial, Inc.DEF 14A 06/20/2018H@FBR Co. Amended and Restated 2006 Long-Term Stock Incentive Plan Plan Category Number of Weighted-  Number of Securities     Shares to   Average   Remaining Available   be Issued Upon   Exercise   for    Exercise of   Price of   Future Issuance    Outstanding    Outstanding   Under   Options,   Options,   Equity Warrants andWarrants  Compensation PlansRights and Rights  (excluding securities (a)(b)(3)   reflected in   column (a))   (c)-%Equity compensation plans approved by~ VA~   ~  ֬ our stockholders (1).&Equity compensation plans not approved~ ~   ~   by our stockholders (2) Total~ VA~   ~  ֬ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>? 0[OC7xcO='`@xUn=PF0*8X> @                    l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } U} $4       B. Riley Financial, Inc.DEF 14A 06/20/2018NO TITLE~ $Includes our FBR Stock Plan.~ 1 )All of our equity compensation plans were % approved by our stockholders.~ 2 *Awards listed in column (a) are restricted 3 +stock unit awards, which have no associated  exercise price.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h{o9}:=PF0*8X> @ l  j  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1) NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } !} $ }  } $ }  }  $ } } $                           B. Riley Financial, Inc.DEF 14A 06/20/2018Director CompensationName (1)Fees Earned or Stock   Total ($)     Paid in Cash   Awards ($) (3)  ~  Robert D?Agostino  ~ bM   ~ q   ~ Z  Robert L. Antin  ~ >   ~ q   ~ r  Richard Hendrix (2)  ~    ~    ~  Michael J. Sheldon~ ~ q  ~    Todd D. Sims~ i~ q  ~   Richard L. Todaro~ *~ q  ~  * Mikel H. Williams~ ^\~ q  ~  ^ #Gary K. Wunderlich, Jr. (3)~ ~   ~   $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4 znbd>%q]`=PF0*8X> @J       l  B'22  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director CompensationBeneficial OwnershipREPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } U} mB B      B. Riley Financial, Inc.DEF 14A 06/20/2018NO TITLE~ 4,Bryant R. Riley, our Chief Executive Officer 2 *and Chairman, Thomas J. Kelleher, a member 2 *of the Board and our President, and Andrew 3 +Gumaer, a member of the Board and the Chief 6 .Executive Officer of GAG, LLC are not included 9 1in this table because as employees Messrs. Riley,2*Kelleher and Gumaer received no additional.&compensation for services as directors.&for 2017. The compensation received by1)Messrs. Riley, Kelleher and Gumaer as our6.employees is shown in the summary compensation?7table provided above in ?Executive Compensation-SummaryCompensation Table.?~ 1)Richard Hendrix served as a director from4,June 1, 2017 to October 13, 2017 and did not1)receive any compensation for his services5-as a director since he served as a consultant4,during his tenure on the Board. See ?Certain5-Relationships and Related Party Transactions?3+below for a description of the terms of his%arrangement with the company.~ /'Gary K. Wunderlich, Jr. did not receiveDl{o)bS?t3e" !"#$%&'()*+,-./0123456789:;<=>? 7 /any compensation for his services as a director!2!*since he also serves as an employee of the"/"'company. See ?Certain Relationships and#-#%Related Party Transactions? below for$5$-a description of the terms of his employment.%%~ &6&.The amounts in the Stock Awards column reflect'9'1the aggregate grant date fair value of restricted(6(.stock units granted to the applicable director)2)*in 2017 calculated in accordance with FASB*2**ASC 718. We granted 2,606 restricted stock+4+,units to Messrs. D?Agostino, Antin, Sheldon,,/,'Sims, Todaro and Williams on August 18,-3-+2017 for such directors? annual stock grant...&of $40,000 as a non-employee director./3/+The grant date fair value of the restricted020*stock units was $15.35 per share on August101(18, 2017. All awards vest on the earlier232+of June 1, 2018 or our 2018 annual meeting.313)Vesting for all such awards is subject to414)full acceleration in the event of certain535+change in control transactions with respect666.to us and is contingent upon continued service7/7'of the applicable director on the Board8/8'through the applicable vesting date. As9:92of December 31, 2017, a total of 15,636 restricted:2:*stock units granted to Messrs. D?Agostino,;1;)Antin, Sheldon, Sims, Todaro and Williams<<remain outstanding.=>$?____________________________D lw8V C}?z7r,d"@A1@)Created by Morningstar Document Research.0A(http://documentresearch.morningstar.com/=PF0*8X> @AA@@?? l  *lEMI  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)REPORT OF THE AUDIT COMMITTEE OTHER MATTERSU } $4} $ } y} $ }  } $ *                                  B. Riley Financial, Inc.DEF 14A 06/20/2018Beneficial OwnershipShares Beneficially    Owned (2). &Name or Group of Beneficial Owners (1)  Number   Percent / 'Directors and Named Executive Officers:         Bryant R. Riley (3)  ~     L1@ % Phillip J. Ahn  ~     * Thomas J. Kelleher (4)~ ^~   %Andrew Gumaer (5)~ &333333@ %Alan N. Forman~ v} *Gary K. Wunderlich, Jr.~ &~  *Robert D?Agostino~ o *Robert L. Antin~ ]  *Michael J. Sheldon~ ( * Todd D. Sims~ o *Richard L. Todaro~ c *Mikel H. Williams~  *3+Executive officers and directors as a group~ z3333338@ % (13 persons):5% Stockholders:/'Daniel Asher and associated persons (6)~ l~ & %D3l{oc lQMJXZ^^R9Q ! " # $ % & ' ( ) 1 )Funds associated with Elliott Associates,  ~ Jƌ    !@ %!L.P. (7)/"'Neil S. Stubin as President and Manager""~ "r""""333333 @ "%1#)of MILFAM LLC. and associated persons (8).$&Funds associated with Nokomis Capital,$$~ $RR$$$$@ $%% L.L.C. (9)&$'____________________________1()Created by Morningstar Document Research.0)(http://documentresearch.morningstar.com/bN}=PF0*8X> @:))((''    l  UQ  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial Ownership OTHER MATTERSU } $ } 6       B. Riley Financial, Inc.DEF 14A 06/20/2018%REPORT OF THE AUDIT COMMITTEERespectfully submitted,  5 -THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS   Richard L. Todaro    Todd D. Sims   Mikel H. Williams $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(T~rfZi4(=PF0*8X> @ l  X  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??B Riley Financial IncTo be held on July 26 2018 To be held on July 26 2018 (1)Revocation of Proxies!Information Regarding DirectorsAudit and All Other FeesBoard Role in Risk ManagementSummary CompensationSummary Compensation (1)Stock Option GrantsOutstanding Equity Awards Stock Vested!Payments Due Upon Termination oElements of 2017 Compensation!B Riley Amended and Restated 20 NO TITLE!FBR Co Amended and Restated 200 NO TITLE (1)Director Compensation NO TITLE (2)Beneficial OwnershipREPORT OF THE AUDIT COMMITTEEU } $ } +       B. Riley Financial, Inc.DEF 14A 06/20/2018 OTHER MATTERS*"By Order of the Board of Directors      Bryant R. Riley  , $Chairman and Chief Executive Officer  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/&x@vj$ymE=PF0*8X> @ Root Entry FBook  {Y  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~