Company: REX
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0000930413-25-001442
Chunk: 19

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 19
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 the program, if there is a pre-tax loss in one or more fiscal years, 50% of the pre-tax loss must be recouped in its entirety before a bonus could be paid in a future year. We believe the clawback ensures that executive incentive awards are paid based on cumulative Adjusted Net Income (net of losses) and provides incentive to our executive officers to focus on long-term, sustained earnings growth.

Role of Executive Officers in Determining Executive Compensation

The Compensation Committee of our Board of Directors determines the compensation paid to our CEO and recommends to the Board of Directors for approval the compensation of our other non-CEO executive officers. Our CEO recommends base salary levels and annual incentive opportunities for non-executive officers. All annual incentive payments to executive officers are approved by the Compensation Committee.

Peer Group

When the Compensation Committee adjusted the base salaries and annual incentive opportunities for our executive officers in fiscal 2022 (which remained unchanged in fiscal 2024), the Compensation Committee consulted with management and selected a peer group consisting of 15 companies. The

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Company’s revenue was at the 55th percentile of the peer group. The peer group consisted of the following companies:

| Aemetis, Inc.                             |     | Green Plains Inc.            |
| Alto Ingredients, Inc.                    |     | Intrepid Potash, Inc.        |
| American Vanguard Corporation             |     | Laredo Petroleum, Inc.       |
| Archrock, Inc.                            |     | LSB Industries, Inc.         |
| Berry Corporation                         |     | Renewable Energy Group, Inc. |
| Calumet Specialty Products Partners, L.P. |     | U.S. Silica Holdings, Inc.   |
| Clean Energy Fuels Corp.                  |     | W&T Offshore, Inc.           |
| FutureFuel Corp.                          |     |                              |

Internal Revenue Code Section 162(m)

Section 162(m) of the Internal Revenue Code disallows a federal income tax deduction to a public company for compensation paid in excess of $1 million in any taxable year to the company’s chief executive officer or any of its other four highest paid executive officers. The Compensation Committee considers anticipated tax treatment when reviewing executive compensation, but does not limit executive compensation to amounts deductible under Section 162(m) in order to maintain flexibility in structuring compensation programs.

Compensation Committee Report

The Compensation Committee of the Board of Directors of REX American Resources Corporation has reviewed and discussed the Compensation Discussion and Analysis