CHS Long Term Incentive Plan Appendix: Fiscal 2016-2018 Return on Adjusted Equity Goals

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This appendix outlines the performance targets for the CHS Long Term Incentive Plan for fiscal years 2016 to 2018. It sets specific return on adjusted equity (ROAE) goals that determine the percentage of incentive awards employees can earn, ranging from 50% at the minimum threshold to 400% for superior performance. The calculation of ROAE is explained, and awards are adjusted based on actual performance between set targets. The plan is designed to align employee incentives with company financial performance over a three-year period.

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EX-10.5E 10 ex-105eltiplan2016x2018app.htm EXHIBIT 10.5E Exhibit


Exhibit 10.5E

CHS LONG TERM INCENTIVE PLAN
Plan Appendix


Fiscal 2016-2018 RETURN ON ADJUSTED EQUITY GOALS

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
50%

Note: Compensation earned for any Performance Period is mathematically interpolated when
performance results occur between the three ROAE Performance Targets.

RETURN ON ADJUSTED EQUITY EXPLANATION

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.