2007 Compensation for Named Executive Officers of Ceradyne, Inc.
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EX-10.1 2 dex101.htm COMPENSATION PAYABLE TO NAMED EXECUTIVE OFFICERS Compensation Payable to Named Executive Officers
Exhibit 10.1
2007 Compensation for Named Executive Officers of
Ceradyne, Inc.
| Name and Office | Base Salary(1) | Maximum Cash Bonus(2) | Long-Term Equity Incentive Compensation(3) | Total Maximum Compensation | ||||||||
| Joel P. Moskowitz, Chairman, Chief Executive Officer and President | $ | 650,000 | $ | 650,000 | $ | 300,000 | $ | 1,600,000 | ||||
| David P. Reed, Vice President, and President of North American Operations | $ | 325,000 | $ | 325,000 | $ | 175,000 | $ | 825,000 | ||||
| Jerrold J. Pellizzon, Chief Financial Officer and Corporate Secretary | $ | 300,000 | $ | 300,000 | $ | 175,000 | $ | 775,000 | ||||
| (1) | Ceradyne is an “at will” employer. The expression of base salaries in annual amounts does not imply that there is an agreement to employ any executive officer for any specific period of time. |
| (2) | 2007 Cash Bonus Formulas for Named Executive Officers: |
| Joel P. Moskowitz | 1.0% of consolidated pre-tax profit | |
| David P. Reed | 1.0% of North American Operations pre-tax profit | |
| Jerrold J. Pellizzon | 0.5% of consolidated pre-tax profit |
Notes:
| (a) | Bonuses are calculated on a calendar quarter basis and are paid following completion of the quarter provided that the executive is still employed by the Company as of the date of payment. If there is a pre-tax loss in one quarter, that loss will be subtracted from the pre-tax profit in the subsequent quarter when calculating the bonus earned for the subsequent quarter. |
| (b) | All cash bonuses are capped at an amount equal to 100% of the officer’s annual base salary. |
| (3) | Long-term equity incentive compensation will be in the form of Restricted Stock Units (“RSU”) granted under the Company’s 2003 Stock Incentive Plan. Each RSU represents the right to receive one share of common stock of the Company when the RSU vests. RSUs granted to officers vest over five years at the rate of 20% of the units as of each anniversary of the date of grant. The number of RSUs to be granted will be determined by dividing the amount of long-term equity incentive compensation shown in the table by the share price on the date of grant. |
