Actuant Corporation Fiscal 2005 Management Bonus Arrangements
This document outlines Actuant Corporation's fiscal 2005 bonus plan for corporate executives and business unit leaders. Bonuses are based on year-over-year improvements in financial performance measures, specifically the Consolidated Combined Management Measure (CMM) for executives and a mix of segment, business unit, and consolidated CMM for unit leaders. Bonus payouts vary depending on the level of improvement achieved, with specific targets and payout amounts listed for each executive. The plan sets clear financial goals and links bonus eligibility to company and segment performance.
Exhibit 10.30
Corporate Executive Fiscal 2005 Bonus Measurements
The fiscal 2005 bonus plan for corporate executives will be based on year-over-year improvement in Actuant’s Consolidated Combined Management Measure (CMM)
Supporting Definitions:
Consolidated CMM = Net earnings before interest, taxes, and amortization less Asset Carrying Charge of 20% of net debt, shareholders’ equity and accumulated amortization of intangible assets
Bonus Targets:
| 0% | 100% (Target) | 250% | ||||||
| Consolidated CMM | $40.4 million | $44.5 million | $50.5 million | |||||
| Name | Functional Area | Proposed Bonus Payout @ 100% | ||||||
| Robert Arzbaecher | Chief Executive Officer | $536,000 | ||||||
| Andrew Lampereur | Chief Financial Officer | $155,000 | ||||||
Business Unit & Segment Leader Fiscal 2005 Bonus Measurements
The fiscal 2005 bonus plan for segment leaders will be based on year-over-year improvement in segment CMM (70%) and year-over-year improvement in Actuant’s CMM (30%). The fiscal 2005 bonus plan for the European Electrical business unit leader will be based on year-over-year improvement in Business Unit CMM (33%), year-over-year improvement in Actuant’s CMM (33%), and a performance based incentive based on projects assigned by the CEO (34%).
Supporting Definitions:
Business Unit & Segment CMM = Operating Profit (before amortization) less Asset Carrying Charge of 20% of Net Assets Employed
Net Assets Employed = Net accounts receivable + net inventory + prepaid assets + net fixed assets + other long-term assets (excluding intangible assets) - accounts payable – accrued current liabilities
Bonus Targets:
| Mark Goldstein; Executive Vice President— | ||
| Tools & Supplies CMM | 0% payout: Less than or equal to 100% of prior year. 100% payout: 10% improvement over prior year 250% payout: 25% improvement over prior year | |
| Consolidated CMM | See consolidated CMM scale above. | |
| Bonus payout at 100% | $170,000 | |
| Bill Blackmore; Executive Vice President— | ||
| Engineered Solutions CMM | 0% payout: Less than or equal to 100% of prior year. 100% payout: 10% improvement over prior year 250% payout: 25% improvement over prior year | |
| Consolidated CMM | See consolidated CMM scale above. | |
| Bonus payout at 100% | $162,500 | |
Exhibit 10.30
| Gustav H.P. Boel; Executive Vice President— | ||
| European Electrical CMM | 0% payout: Less than or equal to 80% of prior year. 100% payout: 10% improvement over prior year 250% payout: 50% improvement over prior year | |
| Consolidated CMM | See consolidated CMM scale above. | |
| Bonus payout at 100% | $137,500 | |
