ADT 2006 Annual Report Download - page 40

specified in the table. Under the pension plan, no more than a maximum of 30 years of credited service
may be recognized for benefit accrual purposes.
Years of Credited Service and Related Estimated
Annualized Monthly Annual Benefits Payable Upon Retirement
Salary as of Three Years
Prior to Retirement 15 20 25 30 35
$ 944,617 $ 354,110 $ 495,991 $ 648,819 $ 812,492 $ 812,492
$1,272,993 $ 494,397 $ 688,195 $ 895,486 $1,116,269 $1,116,269
$1,601,368 $ 639,199 $ 884,900 $1,145,873 $1,422,121 $1,422,121
$1,929,745 $ 788,520 $1,086,081 $1,399,925 $1,730,052 $1,730,052
$2,258,121 $ 942,356 $1,291,736 $1,657,638 $2,040,057 $2,040,057
$2,586,497 $1,100,710 $1,501,870 $1,919,013 $2,352,140 $2,352,140
$2,914,872 $1,263,581 $1,716,480 $2,184,053 $2,666,298 $2,666,298
$3,243,249 $1,430,968 $1,935,568 $2,452,756 $2,982,536 $2,982,536
$3,571,625 $1,602,872 $2,159,130 $2,725,124 $3,300,848 $3,300,848
$3,900,000 $1,779,293 $2,387,170 $3,001,151 $3,621,236 $3,621,236
Converted form Euro using a conversion ratio of 1.27013 USD to 1 EUR.
The annual benefits shown in the table assume the employee would receive his retirement benefits
under the pension benefits plan in the form of a straight life annuity upon normal retirement at age 65.
The retiree is required to pay medical and long-term care insurance, as well as taxes from the benefit
provided under the pension benefits plan. In addition to this pension, at September 30, 2006,
Dr. Gromer had accrued a taxable pension payable at retirement by an insurance company in the
amount of 3,386 EUR annually.
The compensation of Dr. Gromer covered by the pension benefits plan is his base salary amount
excluding statutory payments for Christmas and vacation pay. Dr. Gromer’s current covered
compensation is EUR 743,717.
As of September 29, 2006, for purposes of calculating benefits accrued under the pension plan,
Dr. Gromer has 28 years and 9 months of credited service with Tyco.
Employment, Retention and Severance Agreements
Tyco has entered into employment agreements with Messrs. Breen and Lytton. Tyco Electronics
Logistics AG, a subsidiary of the Company, has entered into an employment agreement with
Dr. Gromer. Mr. Coughlin and Mr. Lynch do not have employment agreements, but participate in the
Tyco International (US) Inc. Severance Plan for U.S. Officers and Executives and the Tyco
International (US) Inc. Change in Control Severance Plan for Certain U.S. Officers and Executives.
Employment Agreement with Edward D. Breen
Our employment agreement with Mr. Breen is dated as of July 25, 2002 and is filed as an exhibit
to our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2002. The agreement
provides for Mr. Breen to serve as our President, Chief Executive Officer and Chairman for an initial
term of three years and, thereafter, for additional successive terms of one year each unless terminated
by us or Mr. Breen at the end of the initial term or any additional term. Under the agreement,
Mr. Breen is entitled to an annual base salary of at least $1,500,000 and is eligible to earn an annual
bonus of at least 100% of his base salary, subject to Tyco’s satisfaction of pre-established, objective
financial performance criteria to be determined by the Board.
The agreement provides the following terms for certain stock awards Mr. Breen received when he
joined the Company: (i) all awards are subject to the terms and conditions of the long-term incentive
plan; (ii) upon a change in control of Tyco, all of the awards vest in full and are exercisable for their
28 2007 Proxy Statement