NACCO INDUSTRIES, INC. (NYSE:NC) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On March 13, 2018, the Compensation Committee (the “Committee”) of the Board of Directors of NACCO Industries, Inc. (“NACCO”) approved the participation of the following named executive officers in the NACCO Industries, Inc. Executive Long-Term Incentive Compensation Plan (Amended and Restated Effective March 1, 2017), referred to as the NACCO Long-Term Equity Plan, and the NACCO Industries, Inc. Annual Incentive Compensation Plan (Effective September 28, 2012), referred to as the NACCO Short-Term Plan, with the following target award values for the performance period of January 1, 2018 through December 31, 2018:
Named Executive OfficerShort-Term Plan TargetLong-Term Equity Plan Target(1)
J.C. Butler, Jr.90% of salary midpoint195.50% of salary midpoint
Elizabeth I. Loveman35% of salary midpoint40.25% of salary midpoint
Carroll L. Dewing45% of salary midpoint57.50% of salary midpoint
John D. Neumann45% of salary midpoint57.50% of salary midpoint
Harry B. Tipton, III40% of salary midpoint51.75% of salary midpoint
The Committee approved the performance criteria and weightings shown in the tables below for determining final incentive compensation payments for the named executive officers under the NACCO Short-Term Plan (payout in cash from 0% to 150%) and NACCO Long-Term Equity Plan (payout in a combination of cash and stock from 0% to 200%) for the performance period. Calculation of the final incentive compensation payments under the plans is subject to adjustment for certain items, and subject to the Committee’s ability to exercise discretion to increase, decrease or modify awards, as previously disclosed.
2018 Performance Criteria for NACCO Short-Term Plan:
|
NACCO and The North American Coal Corporation (“NACoal”) |
Weight |
|
NACCO Consolidated Operating Profit vs. Annual Operating Plan |
50% |
|
Mississippi Lignite Mining Company (“MLMC”) return on total capital employed (“ROTCE”) vs. Annual Operating Plan |
10% |
|
Centennial Natural Resources, LLC (“Centennial”) Pre-Tax Cash Flows vs. Annual Operating Plan |
5% |
|
Project Focus List vs. Target |
35% |
|
50% |
The NACCO Consolidated Operating Profit measure excludes MLMC and Centennial results because those are separate factors under the NACCO Short-Term Plan.
2018 Performance Metrics for NACCO Long-Term Equity Plan:
|
NACCO and NACoal |
Weight |
|
NACCO Consolidated ROTCE vs. Annual Operating Plan |
70% |
|
Special Project Award vs. Target |
30% |
|
50% |
|
(1) |
The amounts shown include a 15% increase from the Hay-recommended long-term plan target awards that the Compensation Committee applies each year to account for the immediately taxable nature of the NACCO Long-Term Equity Plan awards. |
About NACCO INDUSTRIES, INC. (NYSE:NC)
NACCO Industries, Inc. is a holding company with principal businesses, including mining, small appliances and specialty retail. The Company operates through three segments: NACoal, HBB and KC. Its subsidiaries include The North American Coal Corporation (NACoal), Hamilton Beach Brands, Inc. (HBB) and Kitchen Collection (KC). Its NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. NACoal’s mining operations include Mississippi Lignite Mining Company and Centennial Natural Resources. Its HBB segment designs, markets and distributes a range of small electric household and specialty housewares appliances, including blenders, can openers, coffeemakers, food processors, indoor electric grills, irons, mixers, slow cookers, toasters and toaster ovens. Its KC is a national specialty retailer of kitchenware and gourmet foods operating under the Kitchen Collection and Le Gourmet Chef store names in outlets and malls.
