Company: CF
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001104659-25-027767
Chunk: 125

Company: CF Industries Holdings, Inc.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 125
---
ing were accelerated, or a performance condition were waived upon a valid termination. The policy advocated for would necessitate shareholder approval of every such arrangement since the entire idea of long-term equity compensation is to increase the company’s stock price and therefore the value of equity incentive awards, and the purpose of termination provisions is to mitigate concerns that employees may have about losing their employment following a change of control transaction. In this regard, the Company’s severance agreements have the best practice “double trigger” structure, providing that a payment is only triggered upon both a change of control and subsequent termination of employment. Shareholders have existing mechanisms to raise concerns regarding our executive compensation programs. Over the past five years, shareholders have approved the compensation of the company’s named executive officers with average support of over 90%, indicating broad shareholder support for our executive compensation program. Our 2022 Equity and Incentive Plan was approved by our shareholders with a 95% vote in favor of adoption at our 2022 annual meeting of shareholders. Outside of the annual advisory and equity incentive plan approval votes, shareholders also have extensive opportunities to express their views on the executive compensation program through the company’s robust, year-round shareholder outreach program. We have a demonstrated history of making changes in response to shareholder feedback. 108 TABLE OF CONTENTS In 2024, we contacted shareholders representing approximately 70% of our outstanding shares and engaged with shareholders representing approximately 50% of our outstanding shares. Most shareholders continued to provide positive feedback on our executive compensation practices, which are designed to ensure that executive officers’ personal interests will remain aligned with the best interests of the company and our shareholders. Adoption of this proposal could prevent us from effectively recruiting, motivating and retaining the highest quality candidates in a competitive talent market, which would be adverse to the best interests of our shareholders. The company relies on equity awards and carefully designed severance programs to motivate and retain our employees, and we believe that these awards and programs are necessary for us to remain competitive in attracting and retaining highly qualified individuals upon whom, in large measure, the future growth and success of the company depends. Because the proposal is inconsistent with market practice, its restrictions upon a termination event could undermine our ability to recruit and retain this top talent. Similarly, requiring shareholder approval, which is often expensive and impractical, in order for certain employees and executive officers to realize the full value of their equity awards upon a qualifying termination related to a change in control or in the event of an executive officer’s death or disability could disadvantage our ability to recruit or retain