CHASE CORPORATION ANNUAL INCENTIVE PLAN

EX-10.1 3 a08-10436_1ex10d1.htm EX-10.1

Exhibit 10.1

CHASE CORPORATION

ANNUAL INCENTIVE PLAN

The Company, in addition to salary and benefits provides further cash compensation to key employees based on achieving preset annual goals.

The plan is maintained and paid at the sole discretion of the Board of Directors and may be modified or suspended at any time by the Board.

Upon approval by the Board of Directors, the Corporate H.R. Manager will administer the plan.

An annual bonus pool is created as a percentage of actual operating income achieved during the fiscal year. The amount is determined by the success in reaching the year’s targeted results. The schedule follows:

Percentage of Target Achieved		Bonus Pool as a Percentage of Actual Operating Income
120%		17%
110		16
100		15
90		14
80		13
70		12
60		11
50		10

As consideration for achieving qualitative results by the Company, the Board of Directors, at its sole discretion, may increase or decrease dollars in the pool.

It is the intent of the Board of Directors to exclude the effect of unusual events and expenses from the calculation. The Compensation and Management Development Committee is given the authority by the Board to use its discretion in determining relevant exclusions.

Targets, awards, opportunities and associated performance award methodology and eligibility requirements will be established by the Compensation and Management Development Committee for the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer and Chief Marketing Officer and approved by the Board of Directors. For senior management, the CEO will make recommendations to be approved by the Compensation and Management Development Committee. For all other employees the CEO will be the approval authority. See schedule below for award opportunities for the executive officers:

Annual Target for FY August 31, 2008 Award Opportunity		Earnings Before Tax (“EBT”) target as approved by the Board of Directors. Payment threshold is 50% of target as scheduled below for respective positions.
Chief Executive Officer		50% of base salary for 100% achievement of target. At 50% of target award is 8.33% of base salary; at 75% of target award is 25% of base salary. For results in excess of target, award increases to 100% of base salary at approximately 155% of target.
Chief Operating Officer		40 % of base salary for 100% achievement of target. At 50% of target award is 6.67% of base salary; at 75% of target award is 20% of base salary. For results in excess of target, award increases to 100% of base salary at approximately 163% of target.
Chief Financial Officer		30% of base salary for 100% achievement of target. At 50% of target award is 5% of base salary; at 75% of target award is 15% of base salary. For results in excess of target, award increases to 100% of base salary at 175% of target.
Chief Marketing Officer		30% of base salary for 100% achievement of target. At 50% of target award is 5% of base salary; at 75% of target award is 15% of base salary. For results in excess of target, award increases to 100% of base salary at 175% of target.

In order for any amounts to be payable under this Annual Incentive Plan, actual results must meet a threshold level of 50% of the target. There is no cap on the incentive payments.

Payment is made in cash no later than 75 days from the close of the fiscal year.

To be eligible an employee must be on the active payroll when the bonus is paid and for at least 6 months prior to the end of the fiscal year.

In addition to the financial targets the Compensation and Management Development Committee may choose to establish qualitative measurement criteria. Together with the financial measures these are referred to as critical success factors (CSF). When utilized, the CEO’s CSF and appropriate weighting is approved by the board. The CEO will approve all others.

Other management and non-union bonus participants will have opportunities established by senior management and awards paid from the bonus pool.