American Superconductor Corporation Executive Incentive Plan for Fiscal Year 2009
American Superconductor Corporation established an executive incentive plan for the fiscal year ending March 31, 2010. The plan covers the CEO and all other executive officers, setting target cash incentives as a percentage of each officer’s base salary. Actual payouts depend on company financial performance, achievement of individual objectives, and overall contribution, with awards capped at 156% of the target. The Compensation Committee determines payouts for executives, while the Board decides for the CEO. The plan aims to align executive compensation with company and individual performance.
Exhibit 10.20
Executive Incentive Plan
On May 12, 2009, the Compensation Committee of the Board of Directors (the “Committee”) of American Superconductor Corporation (the “Company”), as well as the Board of Directors of the Company, approved an executive incentive plan for the Company’s fiscal year ending March 31, 2010 (“fiscal 2009”). Participants in the plan include the Company’s Chief Executive Officer and all other executive officers. The Committee is responsible for determining the payout under the plan to each executive officer except the Chief Executive Officer. The Board of Directors of the Company determines the payout under the plan for the Chief Executive Officer, taking into account the recommendation received from the Committee.
Pursuant to the plan, the Committee designated for each executive officer a target cash incentive amount, expressed as a percentage of the officer’s base salary. In establishing these targets, the Committee took into account for each officer the level of total compensation including base salary, cash incentive and equity paid by similar companies for comparable positions based on market data compiled by the Company’s outside compensation consultant Pearl Meyer & Company and the Company’s Vice President of Human Resources.
The amount of the incentive award actually paid to each executive officer may be less than or greater than the executive’s target cash incentive, with the amount capped at 156% of the target incentive. Individual incentive awards will be determined following the end of fiscal 2009 based on the following factors and their corresponding weightings:
| • | the Company’s net income (loss) before amortization of acquisition-related intangibles, restructuring and impairments, stock-based compensation expense, other unusual charges and any tax effects related to these items for fiscal 2009 as compared to the target established by the Committee – 40% |
| • | the executive’s achievement of individual, measurable objectives during fiscal 2009 as determined by the Committee for all executives with the exception of the Chief Executive Officer, who is evaluated by the Board of Directors – 40% |
| • | the executive’s overall contribution during fiscal 2009 towards the achievement of the Company’s financial and non-financial objectives (subjective performance measure) – 20% |
The following table sets forth each current executive officer’s target cash incentive for fiscal 2009.
| Executive Officer | Title | Target Incentive as % of Base Salary | Target Incentive | ||||
| Gregory J. Yurek | Chief Executive Officer and President | 60% | $ | 360,000 | |||
| Charles W. Stankiewicz | Executive Vice President and General Manager, AMSC Power Systems | 50% | $ | 156,000 | |||
| David A. Henry | Senior Vice President, Chief Financial Officer, Treasurer and Secretary | 50% | $ | 140,000 | |||
| Daniel P. McGahn | Senior Vice President and General Manager, AMSC Superconductors | 50% | $ | 130,000 | |||
| Angelo R. Santamaria | Senior Vice President, Global Manufacturing Operations | 50% | $ | 114,000 | |||
| Timothy D. Poor | Senior Vice President, Global Sales and Business Development | 50% | $ | 110,000 | |||
