Company: REX
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0000930413-25-001442
Chunk: 29

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 29
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ainer, and the Chairs of the Compensation and Nomination and Governance Committees each also receives an additional $10,000 per year retainer.

Non-employee directors receive an annual $50,000 grant of restricted stock under the 2015 Incentive Plan, based on the closing price of REX common stock on the date of grant, vesting in one-third installments on the first three anniversaries of the grant. The Lead Director also receives an additional $25,000 annual grant of restricted stock with a vesting period of three years.

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Compensation Policies and Risk

We believe the compensation policies and practices for our employees do not encourage excessive or inappropriate risk taking and are not reasonably likely to have a material adverse effect on the Company.

Our compensation program consists of fixed and variable components. The fixed portion, base salary, provides stable income regardless of Company performance or stock price. The variable portion, annual incentive and restricted stock awards, rewards both short-term and long-term corporate performance.

We use an annual incentive performance measure (Adjusted Net Income) that is based on after-tax income, which we believe better encourages executives to focus on growing profits and earnings per share than a financial measure that is based on pre-tax net income. We also cap each executive’s total annual incentive award, which we believe reduces the incentive to engage in excess risk taking as incentive payments are limited. We annually review our incentive performance measures and formula.

Long-term performance is reflected in restricted stock awards that vest in installments over three years and grow in value if our stock price increases over time. We believe that our restricted stock awards and the clawback provision in our annual incentive program create a disincentive to engage in short-term risk taking which could ultimately harm the Company’s long-term performance and stock price.

Equity Compensation Plan Information

| Plan Category                                              |     | Number of Securities 
 to be Issued upon    
 Exercise of          
 Outstanding Options, 
 Warrants and Rights  
 (a)                  |     |         |   |     | Weighted-Average  
 Exercise Price of 
 Outstanding       
 Options, Warrants 
 and Rights        
 (b)               |     |   |     | Number of Securities      
 Remaining Available for   
 Future Issuance under     
 Equity Compensation Plans 
 (Excluding Securities     
 Reflected in Column (a))  
 (c)                       |     |           |
| Equity compensation plans approved by security holders1    |     |                      |     | 262,292 | 2 |