Atkore FY 2012 Annual Incentive Plan (AIP) Design and Payout Structure

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines Atkore's 2012 Annual Incentive Plan (AIP) for its corporate staff, executive leadership, and business units, including Brazil. The plan sets performance-based bonus payouts tied to EBITDA, working capital improvements, and personal performance. Payouts vary by business unit and are based on achieving specific financial and operational targets, with higher rewards for exceeding goals. The plan details payout percentages, performance metrics, and the formula for calculating bonuses, ensuring alignment between employee incentives and company performance for the fiscal year 2012.

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EX-10.19 2 d432641dex1019.htm EX-10.19 EX-10.19
ANNUAL INCENTIVE PLAN DISCUSSION
February 8, 2012
Private & Confidential
Company Confidential
Exhibit 10.19

FY 2012 AIP DESIGN
EBITDA
WC Improvement
Personal Performance
Corporate Staff
and ELT
Atkore EBITDA
Atkore WC Days Improve
Personal Performance
65%
25%
10%
EBITDA
BU WC Days Improve
Personal Performance
45%
25%
PTC, AFC, CM NA,
CM EMEA,
CM APAC   
Brazil EBITDA
Brazil WC Days Improve
Personal Performance
45%
30%
BU
Atkore
20%
10%
25%
Brazil
Components:
*Corporate staff whose work is focused on one BU > 80% of their time, will be included in the BU formula
2012 Plan Design rewards participants for both Atkore and BU performance, creating
greater line of sight between participant payouts and business performance.
*

FY 2012 AIP DESIGN
EBITDA PAYOUT RANGES
Payout ranges have been designed to provide higher payout % at target (120%) to
reward business unit performance against the unhedged, stretch EBITDA goals.
Participants
Performance
Payout
Performance
Payout
Performance
Payout
Corporate & ELT
69
EBITDA
(hedged)
75%
50%
100%
100%
125%
200%
Business Unit
95
EBITDA
(unhedged)
75%
50%
100%
120%
125%
200%
Brazil
11
EBITDA
(unhedged)
75%
50%
100%
120%
125%
200%
Total
175
Corporate & ELT
WCD Total Atkore
50%
50%
100%
100%
125%
200%
Business Unit
WCD BU
50%
50%
100%
100%
125%
200%

FY 2012 AIP DESIGN
EBITDA PAYOUT SCALE
Given the unhedged stretch goals, it seems appropriate that the BU payout scale is
more aggressive and rewards each BU at a higher payout % than corporate
participants.
Atkore
PT&C
AFC
NACM
EMEA
APAC
Brazil
Budget EBITDA
EBITDA % of Budget
EBITDA
AIP
Payout
%
EBITDA
AIP
Payout
%
EBITDA
AIP
Payout
%
EBITDA
AIP
Payout
%
EBITD
A
AIP
Payout
%
EBITDA
AIP
Payout
%
EBITDA
AIP
Payout
%
75%
106,057
50%
88,800
50%
39,107
50%
16,076
50%
3,592
50%
2,006
50%
4,536
50%
85%
120,198
70%
100,640
78%
44,321
78%
18,220
78%
4,071
78%
2,273
78%
5,141
78%
95%
134,339
90%
112,480
106%
49,535
106%
20,363
106%
4,550
106%
2,541
106%
5,746
106%
100%
141,410
100%
118,400
120%
52,143
120%
21,435
120%
4,790
120%
2,674
120%
6,048
120%
105%
148,480
120%
124,320
136%
54,750
136%
22,507
136%
5,029
136%
2,808
136%
6,351
136%
115%
162,621
160%
136,160
168%
59,964
168%
24,650
168%
5,508
168%
3,076
168%
6,955
168%
125%
176,762
200%
148,000
200%
65,178
200%
26,793
200%
5,987
200%
3,343
200%
7,560
200%
141,410
118,400
52,143
21,435
4,790
2,674
6,048

FY 2012 AIP DESIGN
ESTIMATED PAYOUT SCENARIO BY BU
Estimated Annual Incentive Plan payouts appropriately align at the total Atkore and
Business Unit levels.
Personal Factors
Total
Weighting
65%
10%
BU
Performance
$
BU Payout
%
Weighted
Payout %
Atkore
Performance
$
Atkore
Payout %
Weighted
Payout %
Total
Estimated
EBITDA
Payout
# Days
Improvement
Payout %
Weighted
Payout %
Payout %
Estimated
AIP Payout
PT&C
$120.0
126%
57%
$156.0
143%
29%
85%
12.2
100%
25%
10%
120%
AFC Cable
$55.0
138%
62%
$156.0
143%
29%
91%
5.8
100%
25%
10%
126%
CM NA
$24.0
159%
72%
$156.0
143%
29%
100%
16.9
100%
25%
10%
135%
CM EMEA
$2.0
0%
0%
$156.0
143%
29%
29%
17.5
100%
25%
10%
64%
CM APAC
$2.0
50%
23%
$156.0
143%
29%
51%
36.8
100%
25%
10%
86%
Brazil*
$1.0
0%
0%
0%
0%
0%
0%
28.9
100%
30%
25%
55%
Atkore**
$156.0
$156.0
143%
93%
93%
13.8
100%
25%
10%
128%
*Brazil measured 45% EBITDA, 30% WC Days, 25% PF
**Atkore # includes
corporate budget of $39M plus additional $9M for higher AIP payout & legal fees
25%
45%
EBITDA
20%
WC Days Improvement

FY 2012 –
WORKING CAPITAL DAYS
TARGETS
Budget Improvement:  13.8 Days.
Full Year (12-month average)
Variance %
2012
2011
2010
2011
2010
(US$ in millions)
Primary Working Capital
Working Capital Days
Allied
AFC Cable
Cable Management NA
Brazil
APAC
EMEA
Allied
AFC Cable
Cable Management NA
Brazil
APAC
EMEA
Total
Total
232.4
75.4
28.7
52.0
12.0
9.8
410.2
240.6
70.5
27.2
59.4
12.6
11.3
421.5
204.8
59.8
22.8
62.4
14.5
7.0
371.3
(3)%
7%
6%
(12)%
(5)%
(13)%
(3)%
13%
26%
26%
(17)%
(18)%
41%
10%
80.4
73.6
81.9
108.0
70.9
71.7
81.2
92.7
79.4
98.7
136.8
88.3
108.4
95.0
92.2
78.3
105.1
130.2
107.4
108.0
95.4
(12.2)
(5.8)
(16.9)
(28.9)
(17.5)
(36.8)
(13.8)
(11.7)
(4.7)
(23.2)
(22.2)
(36.5)
(36.3)
(14.3)

FY 2012 –
WORKING CAPITAL DAYS
AIP TARGETS
% Performance/Days Improvement
50%
100%
125%
Working Capital Days
Threshold
Target
Maximum
Allied
6.1
12.2
15.3
AFC Cable
2.9
5.8
7.2
Cable Management NA
8.4
16.9
21.1
Brazil
14.4
28.9
36.1
EMEA
8.7
17.5
21.9
APAC
18.4
36.8
45.9
Total
6.9
13.8
17.3
Payout scale is linear from 50 to 100% performance.  After 100% achievement, the
scale accelerates, resulting in 200% payout at 125% performance.