Company: SDSYA
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001163609-25-000013
Chunk: 17

Company: SOUTH DAKOTA SOYBEAN PROCESSORS LLC
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 17
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 provides input to the Chief Executive Officer regarding their annual performance reviews and compensation levels of the Chief Operating Officer, Chief Financial Officer, VP of Processing, and VP of Engineering and Innovation.

Compensation Elements

Generally, the types of compensation and benefits provided to the executive officers are similar in form to the compensation and benefits provided to our other employees. For the year ended December 31, 2024, the principal components of our compensation for executive officers included:

• base salary;

• incentive cash bonuses;

• deferred compensation bonuses; and

• other personal benefits.

We expect that the principal components of compensation for any executive officer who may be hired in 2025 will be comprised of the same principal components. The principal components of compensation have been included in the employment agreements and arrangements with our executive officers as well as in the Company policies. We have written employment agreements with Mr. Kersting (our CEO) and Mr. Hyde (our CFO), but have no written employment agreements with Messrs. Carlson, Odde, and Prohaska, each of whom is employed at will by the Company.

Base Salaries

Base salaries for our executive officers are established based on the scope of their roles, responsibilities, experience levels and performance, and considering competitive market compensation paid by comparable companies for similar positions. Base salaries are reviewed approximately annually, and may be adjusted from time to time to realign salaries with market levels after taking into account individual performance and experience.

Bonus

Annual incentive compensation in the form of a bonus is made to all full-time employees, including executive officers, under an employee profit-sharing program approved by the board. Under the annual incentive program, a cash bonus is made to executive officers if and only to the extent the Company is profitable, based on the Company’s defined net income at the end of the fiscal year. For all executive officers, including Messrs. Kersting

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and Hyde, the specific percentage awarded is based on a formula and an evaluation by the Chief Executive Officer and board of managers, who consider current base salary level, level of responsibility and the impact of the executive officer's position on profits. Specifically, if net income exceeds $2 million at the end of the year, an aggregate amount, or pool, is set aside for distribution based on the following formula: [Net Income - $2 million] * 4.7%. Net income for purposes of this calculation is defined as consolidated net income according to our audited financial statements, excluding any income or expense that may