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Table of Contents
companies were presented. The individual performance rating of each of our NEOs, level of NEO achievement versus preapproved performance
measures, and a history of the compensation awarded to each NEO, was given to the Committee to aid its decisions.
Areas of Focus
- Program continuity was the focus for fiscal 2013. Base salaries remained largely unchanged, with most NEOs receiving only
modest CMI increases. Target bonus as a percentage of base salary at 100% achievement also remained the same. The weighting of bonus
performance measures and the bonus deceleration/acceleration table were unchanged for all NEOs and the equity grant value as a percentage of
targeted total cash compensation remained unchanged, except for the Retention Equity Awards to Mr. Wright and Mr. Tonnison. Due to the
uncertain global financial environment, challenging market dynamics, and the positive impact of the compensation program thus far, the Company
believes that its NEO compensation program is well balanced and developed to drive success, retention and shareholder value.
Base Salary
- For fiscal 2013, each NEO other than Mr. Wright and Mr. Tonnison received a modest CMI increase in base salary of between 2.5%
and 3.5% to maintain alignment with our peer group median and remain competitive in the marketplace, and to recognize the contributions each
executive made during fiscal 2012. Mr. Wright and Mr. Tonnison each received a base salary increase of 10.0% to bring compensation closer to the
peer group median. Salary increases were effective as of May 2012. Base salary increases for each NEO for fiscal 2013 were as follows:
Base Salary Increases
Bonus
- Target bonus amounts are set as a percentage of base salary depending on the level of the NEO. The percentages did not change in fiscal
2013. No adjustments were made to the bonus amounts, performance measures or targets, or acceleration or deceleration tables, after they were
initially established at the March 2012 Committee meeting. The following table shows the percentage of base salary the targeted bonus amount
represents at 100% achievement of performance targets:
Target Bonus as a Percentage of Base Salary at 100% Achievement
The selected performance measures and weightings are below and are unchanged for fiscal 2013:
Weighting of Performance Measures
Actual payout for achievement of the performance measures is determined based on a deceleration and acceleration table that recognizes the level
of overachievement or underachievement of the performance target with respect to each performance measure. These performance measures are all
at-risk. For each performance measure, if the target is achieved then there is a 100% bonus payout. If the target is underachieved by a set
percentage, then there is no bonus paid for that measure. If the target is overachieved
Dutkowsky 3.5%
Howells 3.5%
Cano 2.5%
Wright 10%
Tonnison 10%
Dutkowsky 100%
Howells 70%
Cano 85%
Wright 75%
Tonnison 55%
Name EPS ROIC
Regional
profitability
measured in $/€
Regional
profitability
as % of sales
Dutkowsky 75% 25%
(Worldwide)
Howells 75% 25%
(Worldwide)
Cano 25% 25%
(Europe) 25% 25%
Wright 25% 25%
(Americas) 25% 25%
Tonnison 75% 25%
(Worldwide)