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SEC Filings

DEF 14A
ARCH COAL INC filed this Form DEF 14A on 03/18/2019
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Because of these factors, the Committee uses Safety Incident Rate as a component of the annual incentive compensation program. "Safety Incident Rate" is determined based on the Company's historical performance and is the number of reportable injuries per 200,000 man hours. The "target" goal for 2018 was set at the Company's three-year average, while the threshold and maximum goals were set at 10% higher than the Company's three-year average and 10% improvement over the Company's three-year average, respectively. In addition, there is no payout for this performance measure if there is a work-related fatality during the fiscal year. The following table shows the threshold, target and maximum levels for the 2018 Annual Incentive Compensation Program.

 
  2018 PERFORMANCE GOALS  
Performance Measure
  Threshold   Target   Maximum  

Safety Incident Rate

    1.39     1.26     1.13  

    Environmental Compliance —

        Like safety, environmental compliance is an important goal for the Company. Improved environmental compliance can improve the areas in which our employees live and operate and reduce long-term costs and expenses associated with fines, remediation issues and litigation matters. The Committee has established an environmental compliance component based on Notices of Violation, or NOVs, received by the Company and its subsidiaries. The "target" goal for 2018 was set at the Company's three-year average, while the threshold and maximum goals were set at the Company's three-year average plus one NOV and the Company's three-year average minus one NOV, respectively. The following table shows the threshold, target and maximum levels for the 2018 Annual Incentive Compensation Program.

 
  2018 PERFORMANCE GOALS  
Performance Measure
  Threshold   Target   Maximum  

Environmental Compliance

    4 NOVs     3 NOVs     2 NOVs  

    2018 Payout Under the Annual Incentive Compensation Program

        In early 2019, the Committee evaluated the level of achievement of the various performance measures for 2018 and made the following determinations:

Performance Measure
  Actual
Performance
  Applicable
Payout
Percentage
  Relative
Weighting
  Weighted
Payout
Percentage
 

Adjusted EBITDA

  $ 437,778,000     187.2 %   50 %   93.6 %

Free Cash Flow

  $ 348,400,000     200 %   20 %   40 %

Safety Incident Rate

    1.08 (1)   0 %   15 %   0 %

Environmental Compliance

    2 NOVs     200 %   15 %   30 %

(1)
There was no payout for the safety incident rate due to a fatality in 2018.

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