Company: CF
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001104659-25-027767
Chunk: 71

Company: CF Industries Holdings, Inc.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 71
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 and management development committee reviewed the report and approved final performance results. Based on the results, the committee determined that each of our NEOs earned 126.0% of the executive’s target opportunity with respect to the executive’s annual incentive award for 2024. This result is based on our attainment of Adjusted EBITDA of $2.28 billion, which resulted in a payout percentage for the Financial Metric of 77%, the achievement of the completion of 4 clean energy milestones, which resulted in a payout percentage for the Clean Energy Metric of 200%, the achievement of the completion of 4 process, technology and reporting capabilities milestones, which resulted in a payout percentage for the Sustainability Metric of 200% and, after first achieving the gating level of behavioral safety practices goals, our completion of 99.8% of safety critical equipment inspections on schedule and timely MOCs, which resulted in a payout percentage for the Process Safety Metric of 200%. Review and Approval of 2024 Long-Term Incentives The compensation and management development committee reviewed our long-term incentive program during 2023 and granted long-term stock-based incentive awards to our NEOs in January 2024. During its review of our long-term incentive program, the compensation and management development committee considered the following general factors: • the use of properly structured long-term incentives in order to align the interests of senior management and shareholders; • the advantages and disadvantages of using stock options, shares of restricted stock, RSUs, and/or PRSUs for such purposes; and • the array of available vesting parameters for each type of long-term incentive award and the treatment of death, disability, retirement, resignation, and termination, with or without cause.

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TABLE OF CONTENTS The compensation and management development committee also considered the difficulty in establishing appropriate long-term performance measures for the company, other than stock price appreciation and total shareholder return (including dividends), given the inherent cyclicality in our industry as well as the pronounced effects of highly volatile commodity prices for raw materials and nitrogen products upon our operating results. In addition, the compensation and management development committee reviewed a report from Exequity regarding competitive market practices with respect to the use of long-term incentives. The compensation and management development committee considered all of this information in the context of the goals and objectives of our executive compensation plans. As noted above, our long-term incentives focus on enterprise value creation and employee retention. Long-term incentives are provided through annual awards that vest over a period of subsequent years. Our 2022 Equity