Company: SDSYA
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001163609-25-000013
Chunk: 9

Company: SOUTH DAKOTA SOYBEAN PROCESSORS LLC
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 9
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-term incentives;

• Be designed within a consistent philosophy and framework;

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

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

The total compensation philosophy seeks to achieve the appropriate balance among market-based salaries, variable incentive compensation and benefits designed to incentivize and reward both the current and long-term achievement of our business objectives, business and financial plans, and mission fulfillment. It also seeks to incentivize prudent risk taking within board-established parameters, properly balancing between short- and long-term business performance. For named executive officers, the Company strives to deliver a significant portion of total target compensation through performance-based pay. The board believes that this philosophy fosters a performance-oriented, results-based culture wherein compensation varies from one year to the next on the basis of actual results achieved. The board also finds that this variable performance-based compensation approach has been effective at driving financial performance in a difficult economic environment, aligning the interests of our members and our executives, and retaining qualified and experienced executives.

We are asking you to indicate your support for the compensation of our named executive officers as described in the Proxy Statement. This vote is not intended to address any specific item of compensation, our general compensation policies, or the compensation of our board of managers. Rather, this vote relates to the overall compensation of our named executive officers and the philosophy, policies and practices described in this Proxy Statement. We are asking you to vote, on an advisory basis, on the following resolution at the Annual Meeting:

“RESOLVED, that the members of the Company hereby approve, on an advisory basis, the compensation paid to the Company’s named executive officers, as disclosed in Compensation of Officers and Managers, the compensation tables, and related information in this Proxy Statement.”

OUR BOARD UNANIMOUSLY RECOMMENDS THAT MEMBERS CAST THEIR ADVISORY VOTE IN FAVOR OF “FOR” THE FOREGOING RESOLUTION.

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### CORPORATE GOVERNANCE

#### Board Structure and Independence
The board currently consists of nine persons representing three geographical districts. The geographical districts are located primarily in South Dakota and Minnesota. The president (chairman) of the board does not serve as our chief executive officer, chief operating officer, chief financial officer, or in any management executive position. Also, neither our chief executive officer, chief operating officer, chief financial officer, nor any management personnel serves on the board.

The board has the following committees