John Prohaska
About John Prohaska
John Prohaska, age 60, is Vice President of Processing at South Dakota Soybean Processors, LLC (SDSBP) and has served in this role since October 1, 2023. He oversees soybean processing and refining facilities and has progressed through SDSBP roles since 1996 (Operations Coordinator → Engineering Coordinator → Engineering Manager → Operations Group Manager → VP of Processing); prior to SDSBP, he was Special Projects Manager at AGP. He holds a B.S. in Mechanized Agriculture with a minor in Agronomy from South Dakota State University. Compensation for SDSBP executives (including Prohaska) is tied to net income via an annual profit-sharing bonus and long-term deferred compensation that vests over eight years, creating pay-for-performance sensitivity to crush margins and profitability .
Company performance context relevant to Prohaska’s incentives:
- Net income: $67.46m (2022), $70.45m (2023), $20.32m (2024) .
- Annual bonus pool formula: If net income > $2m, pool = (Net Income − $2m) × 4.7% .
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenue ($) | $721,532,329 | $703,148,409 | $554,419,770 |
| EBITDA ($) | $73,309,242* | $77,762,743* | $29,856,202* |
| Net Income ($) | $67,464,101 | $70,449,578 | $20,319,817 |
*Values retrieved from S&P Global.
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| South Dakota Soybean Processors, LLC | Operations Coordinator | 1996–2001 | Early operations leadership for crush/refinery footprint . |
| South Dakota Soybean Processors, LLC | Engineering Coordinator | 2001–2004 | Coordinated engineering across facilities . |
| South Dakota Soybean Processors, LLC | Engineering Manager | 2004–2007 | Led daily engineering tasks for facility operations . |
| South Dakota Soybean Processors, LLC | Operations Group Manager | 2007–2023 | Oversaw soybean processing/refining facilities, improving throughput and reliability . |
| South Dakota Soybean Processors, LLC | VP of Processing | Oct 2023–present | Executive accountability for processing/refining performance and margins . |
| AGP | Special Projects Manager | — | Projects/operations experience prior to SDSBP tenure . |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| — | — | — | None disclosed for Prohaska . |
Fixed Compensation
| Year | Base Salary ($) | Notes |
|---|---|---|
| 2022 | $190,000 | As Operations Group Manager . |
| 2023 | $212,438 | Promoted to VP of Processing effective Oct 1, 2023; appointment salary set at $225,000 . |
| 2024 | $231,750 | Full-year VP compensation; participates in profit-based plan and benefits . |
Additional fixed benefits:
- 401(k) match: 50% of contributions up to 3% of wages; life, accidental and disability insurance; standard medical/dental; no executive perquisites disclosed for CEO/CFO; no unique perquisites disclosed for Prohaska .
Performance Compensation
Annual bonus (cash; profit-sharing formula based on consolidated net income):
| Year | Bonus Paid ($) | Basis (Formula) | Company Net Income ($) |
|---|---|---|---|
| 2022 | $136,721 | (Net Income − $2m) × 4.7% pool; distribution by CEO/Board | $67,464,101 |
| 2023 | $157,836 | Same as above | $70,449,578 |
| 2024 | $34,008 | Same as above | $20,319,817 |
Deferred compensation awards (long-term; vests 12.5% per year over 8 years via Rabbi Trust):
| Year | Award ($) | Vesting schedule |
|---|---|---|
| 2022 | $47,500 | Vests 12.5% per year over 8 years; investment direction at executive’s discretion . |
| 2023 | $67,500 | Same vesting . |
| 2024 | $57,938 | Same vesting . |
Plan mechanics (applicable to all executive officers):
- Metric and weighting: Short-term bonus tied to consolidated net income; specific individual weightings not disclosed; long-term deferred comp goals set annually by CEO and Board; vesting 12.5% per year over eight years .
- Stock/option awards: None; the Company does not grant equity awards to executives .
Equity Ownership & Alignment
| As-of Date | Units Beneficially Owned | Ownership % | Votes Beneficially Owned | Pledged Shares | Options (exercisable/unexercisable) | Ownership Guidelines | Compliance |
|---|---|---|---|---|---|---|---|
| May 1, 2025 | — (none disclosed) | 0% | — (none) | Not disclosed | None (no stock/option awards) | Not disclosed | Not disclosed |
Policies:
- Insider trading and hedging: Company maintains an insider trading policy and policy regarding hedging; details filed as an exhibit to the 2024 Form 10-K .
Employment Terms
| Item | Detail |
|---|---|
| Employment type | At-will (no written agreement) . |
| Role start date | Effective October 1, 2023 (VP of Processing) . |
| Base salary at appointment | $225,000 . |
| Incentives | Eligible for profit-based bonus and deferred compensation; benefits per standard employee programs . |
| Non-compete / non-solicit | Not disclosed for Prohaska; non-compete provisions exist only for CEO/CFO agreements . |
| Severance / change-in-control | If dismissed without cause at 12/31/2024: estimated deferred compensation payments ~$173,000 (no salary/bonus multiple disclosed); at 12/31/2023: ~$115,000 . |
| Garden leave / consulting | Not disclosed. |
| Clawbacks / tax gross-ups | Not disclosed; Company notes flexibility regarding 162(m) deductibility, but no gross-ups disclosed . |
Investment Implications
- Alignment: Prohaska has no disclosed unit ownership or option/stock awards; his incentive pay is tied to net income and long-term deferred compensation vesting, which partially aligns him to profitability and retention but lacks equity-based alignment. This reduces insider selling pressure signals but also limits “skin in the game” through ownership .
- Retention risk: Eight-year vesting on deferred comp (12.5% per year) creates meaningful retention hooks; severance economics for Prohaska focus on deferred comp payments rather than salary/bonus multiples, which lowers exit costs to SDSBP but increases the value of staying vested .
- Pay-for-performance sensitivity: Annual bonus pool is formulaic to net income; the steep decline in 2024 net income ($20.32m vs. $70.45m in 2023) was mirrored in Prohaska’s lower bonus, reinforcing compensation cyclicality with crush margins and operating efficiency. Watch soybean crush spreads, plant uptime, and refinery yields as leading indicators for bonus outcomes .
- Governance/controls: Insider trading/hedging policies exist; Section 16 compliance reported; no related-party transactions involving Prohaska disclosed. Absence of equity pledging mitigates risk; lack of a formal compensation committee is offset by governance committee oversight .
- Performance context: Revenues fell from $721.5m (2022) to $554.4m (2024), and EBITDA from $73.3m* to $29.9m*, compressing variable pay potential; any rebound in crush margins should improve incentive pool funding. For trading, monitor quarterly profitability versus the $2m threshold that seeds the bonus pool .
*Values retrieved from S&P Global.