Otter Tail Corporation 2016 Non-Employee Director Compensation Summary
This document outlines the 2016 compensation plan for non-employee directors of Otter Tail Corporation. Non-employee directors receive annual retainers, with additional amounts for committee chairs and the board chairman, as well as restricted stock awards. Directors can choose to receive their compensation in cash, stock, or a combination, and may defer payments under a deferred compensation plan. Deferred cash earns interest above the prime rate, while deferred stock units accrue dividend equivalents and are paid out in company shares.
Exhibit 10-J-14
SUMMARY OF NON-EMPLOYEE DIRECTOR COMPENSATION (2016)
Compensation: Non-employee directors shall receive the following remuneration:
| Director’s Retainer (except Chairman) | $ | 60,000 | ||
| Committee Chair Retainer | $ | 14,000 | ||
| Chairman of the Board Retainer | $ | 125,000 | ||
| Restricted Stock Award Value | $ | 80,000 |
Directors may elect to receive their compensation (other than expense reimbursements) in the form of cash, stock or a combination. Directors may elect to defer the receipt of all or part of their cash compensation pursuant to the Deferred Compensation Plan for Directors. The deferral may be in the form of cash or stock units. Cash deferrals receive interest at a rate equal to 1% over the prime commercial rate of U.S. Bank National Association. Deferrals in the form of stock units are credited quarterly with dividend equivalents equal to the dividend rate on Otter Tail Corporation’s common shares and the deferred amount is paid out in common shares.
