Actuant Corporation Fiscal 2002 Executive and Business Unit Bonus Plan

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines Actuant Corporation's bonus plan for fiscal year 2002, covering executive staff and business unit leaders. Bonuses are based on improvements in financial performance measures, specifically the Consolidated Combined Management Measure (CMM) and debt reduction. Executives' bonuses depend entirely on consolidated CMM improvement, with additional adjustments for debt reduction, while business unit leaders' bonuses are tied to both their unit's CMM and the consolidated CMM. The plan specifies target bonus amounts for each participant and sets clear financial performance thresholds for payout levels.

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EX-10.27 3 dex1027.txt FISCAL 2002 BONUS PLAN Exhibit 10.27 Executive Staff Fiscal 2002 Bonus Measurements ---------------------------------------------- The fiscal 2002 bonus plan for executive staff will consist of the following: a) 100% - Actuant year-over-year improvement in Consolidated Combined Management Measure (CMM) b) Additional upside/downside tied to Debt Reduction Supporting Definitions: Consolidated CMM = Operating Profit (before amortization) less Asset Carrying Charge of 20% of total debt, shareholders' equity and accumulated amortization of intangible assets Debt Reduction Bonus = actual debt reduction/$20.0 million less 1 multiplied by the target bonus Bonus Targets: ------------- 0% 100% 250% (Target) ----------------------------------------------- Consolidated CMM $18.6 million $21.6 million $31.6 million
Name Functional Area Proposed Bonus Payout @ 100% -------------------------------------------------------------------------------- Robert Arzbaecher Chief Executive Officer $280,000 Andrew Lampereur Chief Financial Officer $ 88,000 Ralph Keller Vice President of Operations $ 78,000
Business Unit Leader Fiscal 2002 Bonus Measurements --------------------------------------------------- The fiscal 2002 bonus plan for business unit leaders will consist of the following: a) 80% - Year-over-year improvement in Business Unit CMM b) 20% - Consolidated CMM improvement c) Additional upside/downside tied to Debt Reduction 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 Debt Reduction Bonus = actual debt reduction/$20.0 million less 1 multiplied by the target bonus Bonus Targets: ------------- Todd Hicks; Vice President of Enerpac- Enerpac CMM 0% payout: Less than or equal to 80% of prior year. 100% payout: 15% improvement over prior year 250% payout: 60% improvement over prior year Consolidated CMM See consolidated CMM scale above. Bonus payout at 100% $64,750 Jerry Peiffer; Vice President of Engineered Solutions-Americas- Engineered Solutions-Americas CMM(60%) 0% payout: Less than or equal to 80% of prior year. Engineered Solutions-Worldwide CMM(20%) 100% payout: 15% improvement over prior year 250% payout: 60% improvement over prior year Consolidated CMM See consolidated CMM scale above. Bonus payout at 100% $64,750