Company: REX
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0000930413-25-001442
Chunk: 15

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 15
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:----|----------:|
| Mr. Rizvi               |     |                        |     | 4.50 | % |     |               | $ |     | 5,000,000 |
| Mr. Bruggeman           |     |                        |     | 2.25 | % |     |               | $ |     | 2,500,000 |
| Mr. Rose                |     |                        |     | 2.50 | % |     |               | $ |     | 2,500,000 |

We define Adjusted Net Income, which is a non-GAAP financial measure, as net income attributable to REX shareholders (after tax), adjusted by a multiplier of 1.33 and then adding back incentive and stock compensation expense. For fiscal years beginning in 2022, any losses incurred by the Company related to the Company’s carbon sequestration project, or any other new investment in an operating entity, for the period through the end of the second year after commencement of operations, will not reduce the bonus calculation. We chose the foregoing measure to incentivize our executive officers to grow profits and so that they would not be penalized for development stage activities.

Annual incentive awards are determined and paid on a formula basis without discretion to increase or decrease award amounts. To strengthen the link between our annual incentive program and long-term corporate performance, one-quarter of the annual incentive award earned by each executive officer is paid in a grant of restricted stock. The restricted stock grants are made on June 15 of the following year, or if June 15 is not a business day, the next business day, and vest in three equal annual installments. Restricted stock exposes executives to both upside and downside equity performance risk.

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The payouts to our named executive officers under the fiscal 2024 annual incentive program were as follows (with 25% payable in restricted stock and 75% paid in cash, as noted above):

| Named Executive Officer |     | Fiscal 2024 Annual 
 Incentive Payout   |   |     |           |
|:------------------------|:----|:-------------------|:--|:----|----------:|
| Mr. Rizvi               |     |                    | $ |     | 3,962,152 |
| Mr. Bruggeman           |     |                    | $ |     | 1,981,076 |
| Mr. Rose                |     |                    | $ |     | 2