Company: CF
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001104659-25-027767
Chunk: 10

Company: CF Industries Holdings, Inc.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 10
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 | ​ | ​ | ​ | Achieved 4 milestones                                    | ​ | ​ | ​ | Achieved 99.4%                   | ​ | ​ | ​ | Achieved 99.8%                 | ​ | ​ |
| ​ | ​ | Target:$2.75 Billion | ​ | ​ | ​ | Target:2 milestones       | ​ | ​ | ​ | Target:2 milestones                                      | ​ | ​ | ​ | Threshold:≥ 95%                  | ​ | ​ | ​ | Target: 95%                    | ​ | ​ |

When setting performance levels for the short-term incentive program, which we also call the annual incentive plan, the compensation and management development committee considers the previous year’s financial performance, market trends and the company’s annual business plan. In 2023, product prices declined as market participants continued to adjust to changes in global trade flows resulting from the geopolitical environment. Going into 2024, benchmark pricing curves indicated lower product prices in 2024 as compared to 2023, but the company expected global nitrogen demand to remain resilient driven by continued strong agriculture applications and recovering industrial demand, while global nitrogen supply was expected to remain constrained with high energy prices in Europe and Asia and other supply side restrictions. In addition, the company expected increased production from its network based on increased tons from the acquisition of the Waggaman facility, partially offset by higher scheduled downtime in 2024 as compared to 2023 due to turnarounds and other planned maintenance. Energy spreads were expected to continue to favor the company’s North American-based production network, but domestic natural gas prices were projected to increase for 2024 relative to 2023 as LNG exports were expected to increase after the resolution of outages and maintenance issues in 2023. As a

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TABLE OF CONTENTS result, the compensation and management development committee set the target performance level for the Financial Metric at $2.75 billion of Adjusted EBITDA. This target is about the same as the company’s 2023 performance, with projected lower product prices and higher natural gas costs partially offset by higher sales volume from increased production. Actual financial results in 2024 reflect continued strong execution by the CF Industries team and continued progress on our strategic initiatives. The global nitrogen supply-demand balance remained constructive and globally nitrogen industry dynamics continue to support our low-cost network. The company’s 2024 financial performance did not meet the company’s expectations as product prices were lower than projected due to lower global energy costs reducing the global market