Company: NC
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0000789933-25-000012
Chunk: 37

Company: NACCO INDUSTRIES INC
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 37
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 but are potentially subject to substantial payout discretion in certain years. No such discretion was implemented for 2024. The dollar-denominated awards are then paid to the participants in a combination of cash (approximately 35%) and restricted shares of Class A Common (approximately 65%). The actual number of shares of stock issued are determined by taking the dollar value of the stock component of the award and dividing it by the lower of the average share price during the 2024 performance period or the preceding calendar year. For 2024, the CHC Committee defined the "average share price" for this purpose as the lower of (1) the average NACCO Class A Common share price for 2023, which was $35.195 or (2) the average of the NACCO Class A Common share price for 2024, which was $30.532.

(3) The amount shown in column (F) is the sum of (a) the cash distributed and (b) the grant date fair value of the stock that was distributed for the 2024 Long-Term Equity Plan awards. This amount is computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718 ("FASB ASC Topic 718"). See Note (2) to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 for more information regarding the accounting treatment of our equity awards. The shares were valued on the

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date on which the Long-Term Equity Plan awards were approved by the CHC Committee. The difference in the amounts disclosed in columns (E) and (F) is due to the fact that the number of shares issued in Column (E) was calculated using the formula share price of $30.532 (explained in Note (2) above), while the grant date fair value in Column (F) was calculated using $32.160, which is the average of the high and low share price on the date the shares were granted.

The performance goals were set by the CHC Committee at its February 2024 meeting.

| The 2024 long-term incentive awards were tied to results in the following areas:                      |     |                                                                                                                                                        |
| Corporate Financial Objectives                                                                        |     | Strategic Objectives                                                                                                                                   |
| •return on total capital employed ("ROTCE"), which measures the level of investment to achieve profit 
 •operating profit, which measures business efficiency and profitability                               |