Company: NC
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0000789933-25-000012
Chunk: 33

Company: NACCO INDUSTRIES INC
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 33
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 Company could reasonably meet this target, since it was designed to be reasonably achievable with strong management performance.

(5) The Safety Incident Report Index represents the number of Mine Safety and Health Administration (“MSHA”) injuries or Occupational Safety and Health Administration (“OSHA”) injuries that occurred for each 200,000 employee hours worked in the performance year. The goal is to have a safety incident rate that is lower than 50% of the national average. The Safety Incident Rate is calculated for each site, with the NEOs receiving an award based on the average Safety Incident Rate for all sites.

(6) The MSHA/OSHA Violations factor involves our locations' weighted average of the number of violations per inspection days relative to the national average violation per inspection days average for MSHA or OSHA violations. The goal is to have a weighted MSHA/OSHA average that is lower than 50% of the national weighted average. The MSHA/OSHA violations factor is calculated at each site, with the NEOs receiving an award based on the average MSHA/OSHA violations for all sites. One location received a non-S&S citation from MSHA, which is a citation for a violation not reasonably likely to cause a reasonably serious injury or illness. The Committee determined this citation should not be included because it was a result of a third-party vendor's actions. This treatment increased the average MSHA/OSHA Violations factor used to calculate the Short-Term Plan award received by the NEOs.

(7) The Environmental Citations factor assesses a location's environmental citations received. A location must have zero citations to receive an award at target, and a location must receive a notable environmental award or recognition to receive an award above target. The Environmental Citations factor is calculated for each site, with the NEOs receiving an award based on the average Environmental Citations factor for all sites. One location received a Distinction In Reclamation Award from the American Society of Reclamation Sciences. This same location also received a National Minerals Education Award in Public Outreach from the Interstate Mining Compact Commission. Another location's customer received a Land Stewardship Award from the Portland Cement Association due to our efforts to reduce waste material by 75%. The CHC Committee determined each site should receive an additional 30% and 20%, achievement respectively. This treatment increased the average Environmental Citations used to calculate the Short-Term Plan award received by the NEOs.

#### Long-Term Incentive Compensation
The purpose of our long-term incentive compensation is to