Seaboard Corporation Executive Officers' Bonus Policy

Summary

This policy outlines how Seaboard Corporation awards annual incentive bonuses to its Chief Executive Officer and other named executive officers. The Board of Directors decides bonus amounts based on the company's financial performance, each officer's individual contributions, and other discretionary factors. Bonuses are paid in cash after year-end financials are finalized, typically around February 1. If a bonus causes an executive's total compensation to exceed $1,000,000, the excess is deferred under the company's Executive Deferred Compensation Plan. This policy applies to bonuses from 2004 onward and replaces previous policies.

EX-10.11 4 ex10_11.txt SEABOARD CORPORATION EXECUTIVE OFFICERS' BONUS POLICY Exhibit 10.11 SEABOARD CORPORATION EXECUTIVE OFFICERS' BONUS POLICY PURPOSE: The purpose of this policy is to establish guidelines for the payment of incentive compensation to named executive officers of Seaboard Corporation. AFFECTS: The Chief Executive Officer and the other named executive officers of Seaboard Corporation, as defined in Item 402 of Regulation S-K. POLICY: 1. Incentive Compensation Philosophy: The Company maintains the philosophy that determination of incentive compensation for its executive officers is based upon a recognition that these officers are responsible for implementing the Company's long-term strategic objectives. All executive compensation, including the incentive portion, is designed to attract and retain top executive employees. 2. Basis for Determination of Incentive Compensation: The Board of Directors shall determine annual bonus amounts for the named executive officers, including the Chief Executive Officer. This determination will be based on a subjective review of the Company's financial performance, an assessment of each officer's individual contribution to that performance and other discretionary factors. The amount assigned to each officer is discretionary. 3. Method and Timing of Payments: Payments will be made in cash after year-end financials are available. This will normally occur about February 1 following the end of the previous fiscal year. EFFECTIVE DATE: As of the 2004 bonus, and supersedes all Executive Bonus Policies in effect prior thereto with respect to the named executive officers. DEFERRED COMPENSATION: Any portion of a bonus which causes total compensation, as defined in Section 162(m) of the Internal Revenue Code of 1986, as amended, to exceed $1,000,000 shall be credited to Seaboard Corporation Executive Deferred Compensation Plan for the account of that Executive Officer.