Company: SDSYA
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001163609-25-000013
Chunk: 18

Company: SOUTH DAKOTA SOYBEAN PROCESSORS LLC
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 18
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 be considered extraordinary and not arising in the ordinary course of business. Our net income in 2024, 2023, and 2022 for purposes of calculating the employees’ incentive pool was $20.5 million, $76.9 million, and $71.1 million, respectively.

Deferred Compensation

The Company's deferred compensation plan provides the opportunity to encourage and reward contributions by the executive officers that advance the long-term success and sustainability of the Company. The long-term incentive awards that result from the deferred compensation plan are intended to form a competitive, comprehensive total compensation package, in combination with base salary, short-term/annual bonus incentives, and benefits. The primary objectives of the deferred compensation plan are to motivate, retain, and reward them for continuing to contribute to the long-term success of the Company.

The executive officers earn deferred compensation awards based on performance achievements during the applicable fiscal year. Performance is expected to be measured through the Company’s outcomes relative to its long-term objectives with consideration for individual participant’s contributions. The target value of plan is communicated at the beginning of the fiscal year, at the discretion of the board of managers, and the actual award values are adjusted based on their performance against predefined metrics consistent with the long-term strategy of the Company. The accumulated account balance will vest, ratably over eight (8) years, at 12.5% per year. Vested amounts will then be paid in conjunction with or post-separation, as specified upon the initial award. While in the plan, award amounts are deposited into an investment account, effectively owned by the Company inside a ‘Rabbi Trust’, with investment direction at the discretion of each executive officer.

Each year, the prospective deferred compensation plan features (i.e., target award, performance goals/metrics, payout range) are determined via discussion/negotiation between the CEO and the board of managers.

Employment Agreements with Executive Officers

On January 1, 2023, we entered into a new employment agreement with Mr. Kersting which continues until terminated by Mr. Kersting or the Company.

The employment agreement with Mr. Kersting provides for an initial base salary of $400,000 for each of the five years ended December 31, 2023, 2024, 2025, 2026, and 2027. The agreement contains benefits relating to termination and change in control. In the event Mr. Kersting is terminated from employment from the Company for various reasons, he is entitled to a payment