Company: NC
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0000789933-25-000012
Chunk: 29

Company: NACCO INDUSTRIES INC
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 29
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 in Lieu of Perquisites 
                         ($) |
| J.C. Butler, Jr.        |     |    $865,100 |     |                                                $872,515 |     | 101% |     | 4.3%                                         |     |                     $35,000 |
| Carroll L. Dewing       |     |    $401,100 |     |                                                $410,209 |     | 102% |     | 4.3%                                         |     |                     $16,000 |
| John D. Neumann         |     |    $378,600 |     |                                                $403,227 |     | 107% |     | 4.3%                                         |     |                     $16,000 |

#### Incentive Compensation
One of the principles of our compensation program is that senior management employees, including the NEOs, are compensated based on the performance of the Company or the business unit for which the employee performed services. In 2024, all of the NEOs participated in (1) the NACCO Industries, Inc. Short-Term Incentive Compensation Plan (the "Short-Term Plan") and (2) the Long-Term Equity Plan.

Our incentive compensation plans are designed to align the compensation interests of the senior management employees with our short-term and long-term interests. A significant portion of the NEOs' compensation is linked directly to the attainment of specific corporate financial and operating targets. The CHC Committee believes that a material percentage of the NEOs' compensation should be contingent on the performance of the Company and its subsidiaries. As illustrated on the target total compensation table on page 17, over 72% of Mr. Butler's 2024 target total compensation was variable or "at risk" and tied to Company performance and, as a group, over 50% of the other NEOs' target total compensation was tied to Company performance. Each of the NEOs' incentive compensation payouts for 2024 exceeded the sum of their respective fixed payments (base salary plus perquisite allowance) for the year.

The performance criteria and target performance levels for the incentive plans are established within the CHC Committee's discretion, and are based upon management's recommendations as to the performance objectives of the Company or the particular business unit for the year. Two types of performance targets are used in the incentive compensation plans:

• Targets Based on Annual Operating Plans . Certain performance targets were based on financial forecasts contained in the Company's 2024 annual operating plan ("AOP"). With