EAGLE MATERIALS INC.
SALARIED INCENTIVE COMPENSATION PROGRAM
FOR FISCAL YEAR 2020
The purpose of the Eagle Materials Inc. Salaried Incentive Compensation Program for Fiscal Year 2020 (the Plan) is to establish an incentive bonus program which: (i) focuses on the performance of Eagle Materials Inc. (the Company) as well as individual performance; and (ii) aligns the interest of participants with those of the Companys shareholders. The Plan is adopted by the Compensation Committee of the Board of Directors (the Committee) under the structure of the Companys Amended and Restated Incentive Plan (the Incentive Plan) and is subject to all the terms and conditions of such Incentive Plan, including, without limitation the limits set forth in Section 8 of the Incentive Plan. The Plan shall be in effect for the fiscal year ending March 31, 2020.
The Companys Chief Executive Officer (the CEO) and his direct reports are eligible to participate in the Plan. The CEO may propose to also include in the Plan additional exempt salaried employees at the corporate level of the Company.
Participants must be an exempt salaried manager or professional. No hourly or non-exempt employee may participate. Participants in the Plan may not participate in any other Company incentive plan providing for monetary awards, except for the Eagle Materials Long Term Compensation Program and the Eagle Materials Special Situation Program.
To ensure reasonableness and affordability, available funds for bonus payments under the Plan are to be determined as a percentage of operating earnings of the Company. The actual percentage may vary from year to year as recommend by the CEO and approved by the Committee. For Fiscal Year 2020, 1.2% of the Companys operating earnings, as determined by the Committee, will fund the corporate bonus pool.
Participants must be employed on March 31, 2020 to be eligible for any bonus award. Awards may be adjusted for partial year participation for participants who enter the program after April 1, 2019.
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Allocation of Corporate Pool
Each participants allocated percentage of the corporate pool, and his/her individual performance relative to the goals and objectives (and bonus award) shall be approved by the Committee, which may seek input from the CEO. For each participant, the maximum annual bonus award opportunity is represented by the percentage of the corporate pool assigned to such participant.