Company: SDSYA
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001163609-25-000013
Chunk: 16

Company: SOUTH DAKOTA SOYBEAN PROCESSORS LLC
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 16
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 committee's actions are reported to the full board and, where appropriate, submitted to the board for ratification or approval. In determining the Chief Executive Officer's compensation, the governance committee considers evaluations prepared by the board. From time to time, the governance committee may delegate the Chief Executive Officer the authority to implement certain decisions of the committee, to set compensation for other executive officers and management employees and to fulfill administrative duties.

In setting compensation, the governance committee took into account the member vote at the 2022 Annual Meeting of Members called on the "Say-on-Pay" proposal, where the members voted in favor of the Company's system of compensating its executive officers, the vote of which is held every three years.

Compensation Philosophy and Objectives

Our total compensation philosophy is designed to maintain a compensation program that will:

• attract, retain and reward associates with the skills required to accomplish the Company's strategic business objectives;

• provide accountability and incentives for achievement of those objectives;

• link compensation to financial performance and increased capital unit value;

• properly balance the risk profile of the Company with both short- and long-term incentives;

• be designed within a consistent philosophy and framework;

• create a culture of adherence to core values and strong ethical behavior; and

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• be integrated with the Company's business processes, including business planning, performance management, and succession planning.

Compensation Committee Procedures

The governance committee is responsible for determining the nature and amount of compensation for the Company's executive officers. The governance committee receives input from the Chief Executive Officer on the personal performance achievements of the executives and management employees who report to him. This individual performance assessment determines a portion of the annual compensation for each management employee. In addition, the Chief Executive Officer provides input on salary increases, incentive compensation opportunities, and long-term incentive grants for the executives and management employees who report to him, which the committee considers when making executive compensation decisions.

The governance committee conducts its own performance review of the Chief Executive Officer. The governance committee annually evaluates the performance of our Chief Executive Officer and determines and approves the Chief Executive Officer's compensation level based on this evaluation. In determining the long-term incentive component of the Chief Executive Officer's compensation, the compensation committee will consider all relevant factors, including the Company's performance, the value of similar awards to chief executive officers of comparable companies, and the awards given to the Chief Executive Officer of the Company in past years. The Chief Executive Officer is not present during committee deliberations concerning his compensation.

The governance committee also