Actuant Corporation Fiscal 2004 Executive and Business Unit Management Bonus Arrangements
This agreement outlines Actuant Corporation's fiscal 2004 bonus plan for executive staff and business unit leaders. Bonuses are based on improvements in financial performance, specifically the Consolidated Combined Management Measure (CMM) for executives and both Business Unit CMM and Consolidated CMM for business unit leaders. The plan sets specific financial targets and corresponding bonus payouts for named executives, with payouts ranging from 0% to 250% of target amounts depending on performance. The agreement details the calculation methods and bonus eligibility criteria for each participant.
Exhibit 10.37
Executive Staff Fiscal 2004 Bonus Measurements
The fiscal 2004 bonus plan for executive staff 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 total debt, shareholders’ equity and accumulated amortization of intangible assets
Bonus Targets:
| 0% | 100% (Target) | 250% | ||||
| Consolidated CMM | $35.5 million | $39.4 million | $45.5 million | |||
| Name | Functional Area | Proposed Bonus Payout @ 100% | ||
| Robert Arzbaecher | Chief Executive Officer | $406,000 | ||
| Andrew Lampereur | Chief Financial Officer | $128,250 | ||
| Ralph Keller | Vice President of Operations | $ 86,000 | ||
Business Unit Leader Fiscal 2004 Bonus Measurements
The fiscal 2004 bonus plan for business unit leaders will be based on year-over-year improvement in Business Unit CMM (80%) and year-over-year improvement in Actuant’s CMM (20%).
Supporting Definitions:
Business Unit 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; Vice President—
| ||
| Tools & Supplies 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% | $141,750 | |
| Gustav H.P. Boel; Vice President— | ||
| Kopp 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% | $112,500 | |
