SCHN 2017 Proxy Statement

Compensation Discussion and Analysis The following table shows the fiscal 2017 AICP performance goals and the results of each goal: Fiscal 2017 AICP Results Performance goals Metric 0.25x 1.00x 2.00x Results Goal Weighting Payout Multiple Adjusted EPS $0.27 $0.84 $ 1.38 $ 1.65 55% 2.00 Adjusted operating cash flow (in millions) $62.0 $90.0 $118.0 $103.0 15% 1.47 Cost Savings (in millions) $13.9 $17.3 $ 26.0 $ 18.2 15% 1.10 Safety AMR TCIR (1) 3.62 3.26 2.72 4.31 DART (1) 2.15 1.99 1.66 2.54 LTIR (1) 0.85 0.83 0.74 0.78 AMR Average Multiple 15% 0.52 SMB TCIR (1) 3.88 3.58 2.99 8.32 DART (1) 2.91 2.68 2.24 4.28 LTIR (1) 1.56 1.40 1.17 3.28 SMB Average Multiple 15% 0.00 Weighted Average Safety multiple (Corporate) (2) 15% 0.41 Payout multiple: AMR 1.56 SMB 1.49 Corporate 1.55 (1) The performance goal for the Safety management objective reflects relative improvements in the Total Case Incident Rate (“TCIR”), Days Away, Restricted or Transferred Rate (“DART”), and Lost Time Incident Rate (“LTIR”) safety metrics from their respective fiscal 2016 levels, except for safety metrics for which fiscal 2016 achieved levels did not represent the best result during the prior five years, in which case the 0.25x payout target was set at the best achieved safety metric level within the five-year historical period. (2) The weighted average safety multiple weighted was 80% AMR, and 20% SMB. The following table summarizes the overall AICP results and payouts: Named Executive Officer Overall Multiple Payout Richard D. Peach 1.55 $782,535 Michael R. Henderson 1.56 $660,150 Steven G. Heiskell 1.56 $492,840 Peter B. Saba 1.55 $414,625 46 | Notice of Annual Meeting of Shareholders and 2017 Proxy Statement