BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES 2011ANNUAL REPORT ON FORM 10-K EXHIBIT 10.13 SUMMARY OF CHANGES TO DIRECTOR COMPENSATION DIRECTOR COMPENSATON
BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
2011ANNUAL REPORT ON FORM 10-K
EXHIBIT 10.13
SUMMARY OF CHANGES TO
DIRECTOR COMPENSATION
DIRECTOR COMPENSATON
Each nonemployee director receives an annual retainer of $150,000, of which $75,000 is payable in cash and $75,000 is payable in the companys common stock. In addition, the lead independent director receives $20,000 in cash annually, the chairs of the Audit, Compensation, Finance and Nominating & Governance Committees each receives $10,000 in cash annually, and each member of the Audit Committee receives $5,000 in cash annually.
The common stock grant is credited to the directors account in the Deferred Compensation Plan for Directors. Stock granted prior to 2012 is distributed following the directors retirement from the Board. For stock granted during or after 2012 to a director who has achieved the stock ownership guidelines, the stock will be distributed one year after the grant date unless the director elects to defer distribution to a later date. For stock granted during or after 2012 to a director who has not yet achieved the stock ownership guidelines, the stock will be distributed following the directors retirement from the Board.
In addition, under the Plan a nonemployee director may elect to defer receipt of all or a portion of his or her directors cash and stock compensation until any date but no later than the year in which the director attains the age of 73 years. Participants may elect to have cash deferred amounts (1) credited with interest quarterly at 80% of the prevailing prime rate, or (2) converted into deferred stock based on the deferral date closing price of the companys common stock. Any balance of deferred shares in a directors account is credited with an amount equivalent to any dividend paid on the common stock, which will be converted into additional deferred shares. The portion of a directors annual retainer that was automatically deferred in common stock is distributed in stock. Voluntary deferrals into a cash account are distributed in cash, and voluntary deferrals into a deferred stock account are distributed in cash or stock at the election of a director.
Nonemployee directors are provided with $150,000 of coverage under Briggs & Strattons Business Travel Accident Plan while on corporate business.
Nonemployee directors are encouraged to use company products to enhance their understanding and appreciation of the companys business. Each such director may purchase at retail up to $10,000 annually of company products and products powered by the companys engines. The company reimburses directors for the purchase price of these products. The amount of the reimbursement is included in the directors taxable income.