Description of Mosaic Management Incentive Program
EX-10.III.B 3 exhibit10iiib20191231.htm EXHIBIT 10.III.B Exhibit
DESCRIPTION OF MOSAIC MANAGEMENT INCENTIVE PROGRAM
Pursuant to the Management Incentive Plan (“MIP”) of The Mosaic Company (the “Company”), key managers of the Company and its subsidiaries, including executive officers, are eligible for annual cash incentive compensation based upon the level of attainment of business performance goals that are pre-established by the Board of Directors of the Company, upon the recommendation of the Compensation Committee.
The incentive measures and their respective weightings for executive officers for 2019 are described below:
ROIC, before specified items. ROIC is based in part on consolidated operating earnings before specified items. This measure has a weighting of 30% for executive officers.
Free Cash Flow: this measure is based on consolidated net cash provided by operating activities before specified items, and has a 20% weighting for executive officers.
Controllable Operating Costs: this measure is based on controllable operating costs per tonne of products produced by the Company’s Phosphates, Potash and Brazil business segments. This measure has a 30% weighting for executive officers.
Safety & Sustainability: the safety and sustainability measure is based on the effectiveness of the Company’s Environmental, Health and Safety management system for the Phosphates and Potash business units, and has a weighting of 10% for executive officers.
Premium Product Sales: this measure is based on metric tonnes of premium products for which the Company recognizes revenue, on a consolidated basis. This measure has a weighting of 10% for executive officers.
Threshold, target and maximum payout levels are set based upon the extent to which the specified performance goals are attained.