Chase Corporation Long Term Incentive Plan Award Design and Grant Process for Fiscal Year 2007

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

Chase Corporation established a Long Term Incentive Plan for the fiscal year ending August 31, 2007, targeting key executives and select employees. The plan awards performance shares based on the company’s Earnings Before Tax (EBT) results, with shares vesting on August 31, 2009. Awards are granted at the start of the measurement period, and payouts vary depending on performance, with higher payouts for exceeding targets. The plan outlines specific vesting and payment rules for retirement, termination, change of control, death, or disability. All awards and plan terms are subject to annual approval and possible modification by the Compensation and Management Development Committee.

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EX-10.36 3 a2181159zex-10_36.htm EX-10.36
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Exhibit 10.36

CHASE CORPORATION

Long Term Incentive Plan
Award Design and Grant Process
Fiscal Year Ending August 31, 2007

Key Provisions

    •
    Long term incentive: performance shares

    •
    Eligibility: key executives and others

    •
    Performance measures: Earnings Before Tax (EBT) as approved by the Board of Directors

    •
    Vesting: August 31, 2009

    •
    Performance measurement period: September 1, 2006 through August 31, 2007

    •
    Grant date: first day of measurement period

    •
    Stock price for award: closing price for last trading day prior to grant date ($16.75)

    •
    Threshold: the point at which an award is earned (80% of target). Between threshold and target the award increases on a pro-rata basis.

    •
    Stretch area: performance in excess of target awarded at a higher rate (150% for 120% achievement) with no cap.

    •
    Termination provisions:

Termination Event
   Vesting
   Payment in Shares
Retirement   Pro-rated   Paid as scheduled
Voluntary   All shares forfeit   No payment
Without cause   Pro-rated   Paid as scheduled
With cause   All shares forfeit   No payment
Upon change of control   Acceleration at target   Paid at change of control
Death or disability   Pro-rated   Paid as scheduled

Example:
Grant 1000 performance shares
Stock price (8/31/06) is $16.75
Threshold is 80% of target
Stretch area pays out pro-rata at rate of 150% for 120% achievement.

Performance
   EBT
   Payout % of Target
   Vesting Shares
Threshold   80% of Target   50 % 500
Target   100% of Target   100 % 1000
Stretch   120% of Target   150 % 1500

Recommended Award Levels @ Target for FY 2007
 
 
 
 
 
 
Peter R. Chase   26,730 shares        
Adam P. Chase   7,563 shares        
Terry M. Jones   6,142 shares        
Kenneth L. Dumas   3,880 shares        
   
       
    44,315 total shares        

        Pre-tax expense at target is 44,315 @ $16.75 = $742,276 spread over 3 years.

Participant
   Annual Salary
   % Salary
   Target Award
   Shares @ 100%
Peter R Chase
President & CEO		   $ 447,720   100 % $ 447,720   26,730

Adam P Chase
 
$
178,000
 
50
%
$
89,000
 
5313 × 5/12 = 2214
VP & COO   $ 192,000   80 % $ 153,600   9170 × 7/12 = 5349
                    7563

Terry M Jones
 
$
178,000
 
50
%
$
89,000
 
5313 × 5/12 = 2214
VP & CMO   $ 188,000   60 % $ 112,800   6734 × 7/12 = 3928
                    6142

Kenneth L Dumas
 
$
120,000
 
25
%
$
30,000
 
1791 × 5/12 =   746
Treasurer & CFO   $ 150,000   60 % $ 90,000   5373 × 7/12 = 3134
                    3880

Share price is $16.75.
Salaries are as planned for promotional increases.

        Award opportunities are set annually and the plan is subject to the approval of the Compensation and Management Development (C&MD) Committee and may be modified from time-to-time.

FY 2007 Schedule

    •
    9/06    Goals and awards proposed by management for 2007

    •
    9/06    C&MD Committee reviews and approves 2006 vesting and 2007 plan

    •
    9/07    Management presents assessment of goal achievement and 2008 proposal

    •
    9/07    C&MD Committee approves 2007 vesting and 2008 goals/awards

    •
    8/09    Vested 2007 shares are released to participant


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    Exhibit 10.36