Company: NC
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0000789933-25-000012
Chunk: 26

Company: NACCO INDUSTRIES INC
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 26
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 that detail the various elements of compensation for each NEO and other senior management employees. Specifically, the tally sheets list each employee's title, salary points, midpoint, base salary, cash in lieu of perquisites (if applicable), short-term incentive target award, long-term incentive target award, and total target compensation for the current year, as well as that being proposed for the subsequent year. These tally sheets are used to evaluate the appropriateness of the total compensation package, to compare each executive officer's total compensation opportunity with his or her actual aggregate payment and to help ensure that the compensation appropriately reflects the compensation program's focus on pay for performance.

In December 2023, the CHC Committee reviewed compensation information for each of our NEOs to decide whether it should make changes to the 2024 compensation program. The CHC Committee determined that the overall program continued to be consistent with our compensation objectives and did not make any material changes for 2024.

The design of our compensation program provides employees with the opportunity to earn above-target compensation for outstanding results. Base salaries are set at levels appropriate to allow our incentive plans to serve as significant motivating factors. Because our program provides significantly reduced compensation for results that do not meet or exceed the established performance targets for the year, it encourages NEOs to earn incentive pay greater than 100% of target over time by delivering outstanding managerial performance.

The following table sets forth target total compensation for the NEOs, as recommended by Korn Ferry and approved by the CHC Committee for 2024:

| Named Executive Officer |     |                 -A) 
 Salary Midpoint  ($ |     | -%  |     |                                 -B) 
 Cash in Lieu of Perquisites  ($) (1 |     | -% |     |                          -C) 
 Short-Term Plan Target    ($ |     | -%  |     | -D)                   
 Long-Term Plan Target 
 ($) (2                |     |            | -%  |     | -A)+(B)+(C)+(D) Target Total Compensation 
                                        ($ |
| J.C. Butler, Jr.        |     |            $865,100 |     | 26% |     |                             $35,000 |     | 1% |     |                     $778,590 |     | 24% |     |                       |     | $1,591,784 | 49% |     |                                $3,270,474 |
| Carroll L. Dewing       |     |            $401