CHS Long Term Incentive Plan Fiscal 2019-2021 Appendix (US and International)
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Summary
This document outlines the CHS Long Term Incentive Plan for fiscal years 2019 to 2021, specifying performance targets based on Return on Invested Capital (ROIC). The plan sets out different award levels depending on whether performance meets threshold, target, maximum, or superior goals, with awards ranging from 50% to 400% of the target. ROIC is defined and the calculation method is detailed. The plan applies to eligible participants in the US and internationally, with compensation determined by the company's financial performance over the specified period.
EX-10.4B 5 ex-104bchsltiplan2019x2021.htm EXHIBIT 10.4B Exhibit
EXHIBIT 10.4B
CHS LONG TERM INCENTIVE PLAN
Fiscal 2019- Fiscal 2021 Plan Appendix
US and International
FISCAL 2019-2021 RETURN ON INVESTED CAPITAL GOALS
Performance Targets | CHS ROIC | Description | Award as % of Target Goal |
Superior Performance Maximum | 7.9% | Superior Performance Goal | 400% |
Maximum | 6.9% | Maximum Performance Goal | 200% |
Target | 5.9% | Target Performance Goal | 100% |
Threshold | 4.9% | Minimum Performance Goal | 50% |
Note: Compensation earned for any Performance Period is mathematically interpolated when performance results occur between the three ROIC Performance Targets.
RETURN ON INVESTED CAPITAL EXPLANATION
ROIC is a measurement of how efficiently the company uses its capital and the level of returns on that capital. It is calculated by dividing net operating profit after tax by funded debt plus equity. Further details on the ROIC calculation, goal determination and goals can be answered by the finance contact for your group. The formula used in the calculation of ROIC is as follows:
ROIC= | Adjusted Net Operating Profit After Tax* |
Funded Debt + Equity** | |
*(Earnings Before Taxes + Interest, Net) * (1- Effective Tax Rate)
**(Average of Beginning FY19 and End of Year FY21Funded Debt) + Beginning of Year Equity
Calculation uses FY18 July balance sheet for beginning of fiscal year 2019 funded debt and beginning of year equity. The FY21 July balance sheet will be used for fiscal 2021 end of year funded debt. Funded debt is calculated by adding long-long term debt plus the current portion of long-term debt plus any guarantees of funded debt.
