Company: NC
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0000789933-25-000012
Chunk: 21

Company: NACCO INDUSTRIES INC
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 21
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 Highlights
Our executive compensation program strongly ties the compensation of our NEOs to our short-term and long-term business objectives and to stockholder interests. Key elements of compensation include base salary, annual incentive compensation, long-term incentive compensation and defined contribution retirement benefits.

2024 NEO Total Direct Compensation at a Glance

The following illustration depicts the mix of pay delivered to our NEOs for the 2024 performance year.

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#### What NACCO Does and Doesn't Do
| Good Compensation Governance Practiced by NACCO                                                                                                                                                                                                                                      |     |                                                                                                                                                      |
| •Align our executive compensation with corporate performance on both a short-term and a long-term basis.                                                                                                                                                                             |     | •Set target compensation at the 50th percentile of our chosen benchmark.                                                                             |
| •Establish target and maximum awards for our short-term and long-term incentive plans.                                                                                                                                                                                               |     | •Equity compensation awards for Directors and NEOs generally must be held for up to ten years.                                                       |
| •In 2024, approximately 74% of total NEO compensation was performance based.                                                                                                                                                                                                         |     | •Conduct an annual risk assessment of our compensation program.                                                                                      |
| •Use an independent compensation consultant who does not perform any other work for the Company.                                                                                                                                                                                     |     | •Our CHC Committee is made up solely of independent directors and makes all NEO compensation decisions.                                              |
| •Provide limited change in control protections for all employees that (1) accelerate the time of payment of previously vested incentive benefits and non-qualified retirement benefits and (2) provide for pro-rata target incentive payments for the year of any change in control. |     | •Provide a modest level of perquisites for certain key executives, the majority of which are paid in cash, that are determined based on market data. |

| Controversial Compensation GovernanceNOTPracticed by NACCO                                                                                                                                                                       |     |                                                                                                                                                                                                       |
| •Provide our NEOs any minimum or guaranteed bonuses.                                                                                                                                                                             |     | •Provide uncapped award opportunities.                                                                                                                                                                |
| •Use total shareholder return (“TSR”) as a performance metric. In our experience, TSR captures fluctuations in stock price, rather than measuring the performance of our executive team in operating our business. Additionally, |     | •Provide active defined benefit plans for executives (we do not have any active defined benefit plans and gave our eligible NEO credit only for time actually worked under our frozen pension plans). |
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