CHS Long Term Incentive Plan Appendix: Fiscal 2014-2016 Return on Adjusted Equity Performance Targets
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Summary
This appendix outlines the performance targets for the CHS Long Term Incentive Plan for fiscal years 2014 to 2016. It specifies how awards are determined based on the company's Return on Adjusted Equity (ROAE), with different payout levels for superior, maximum, target, and threshold performance. The calculation method for ROAE is defined, and compensation is adjusted proportionally if results fall between set targets. The plan is designed to incentivize management based on the company's financial performance over a three-year period.
EX-10.5A 6 ex-105altiplan2014x2016app.htm EXHIBIT 10.5A Exhibit
Exhibit 10.5A
CHS LONG TERM INCENTIVE PLAN
Plan Appendix
Fiscal 2014-2016 RETURN ON ADJUSTED EQUITY
Performance Targets | CHS ROAE | Description | Award as % of Target Goal |
Superior Performance Maximum | 20.0% | Superior Performance Goal | 400% |
Maximum | 14.0% | Maximum Performance Goal | 200% |
Target | 10.0% | Target Performance Goal | 100% |
Threshold | 8.0% | Minimum Performance Goal | 20% |
Note: Compensation earned for any Performance Period is mathematically interpolated when
performance results occur between the three ROAE Performance Targets.
RETURN ON ADJUSTED EQUITY
ROAE (percentage determined by dividing three year adjusted year-end earnings by three year adjusted beginning year equity) | = | Three year Adjusted Year-End Earnings (earnings minus preferred stock dividends) |
Three year Adjusted Beginning Year Equity (beginning year equity minus preferred stock) | ||
* Equity is the difference between total assets and total liabilities in the balance sheet.
