Escalade, Incorporated Executive Officer Compensation Schedule (2008)
This document outlines the 2008 compensation structure for executive officers of Escalade, Incorporated, including base salaries, bonuses, and long-term incentives such as stock options and restricted stock units. The Compensation Committee determines salaries and bonuses based on company performance and individual reviews, with full discretion over bonus allocation and incentive grants. Executives also receive retirement plan benefits, life insurance, and, for the Chairman, participation in a salary deferral plan with interest. The agreement details the compensation amounts and eligibility criteria for these benefits.
Exhibit 10.39
Escalade, Incorporated
Schedule of Executive Officer Compensation
Compensation for the executive officers of Escalade, Incorporated consists of a base salary, bonuses and long-term incentives in the form of stock option grants or restricted stock unit grants.
Base Salary
In general, base salaries are set at the beginning of each year based upon the Company’s income level generated in the prior year, any changes in the level of responsibility and the subjective individual performance review conducted by the Company’s Compensation Committee. The 2008 base salaries for the Companies executive officers are as follows:
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| Name |
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| Position |
| Annual Base Salary | ||
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| Robert Griffin |
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| Chairman of the Board |
| $ | 53,500 |
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| Robert J. Keller |
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| President and Chief Executive Officer |
| $ | 300,000 |
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| Terry Frandsen |
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| VP Finance, CFO |
| $ | 187,000 |
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Bonuses
Each year the Company’s Compensation Committee establishes targeted bonuses for its key executives based on target performance levels for the Company. Performance targets are based on achieving pre-tax income goals in relation to invested capital which is defined as beginning shareholder equity plus average bank debt outstanding. Based on actual results achieved, a bonus pool is accrued for use in paying bonuses. There are no pre-defined methods for allocating the bonus pool to any of the key executives; allocation and payment is entirely at the discretion of the Compensation Committee and Board of Directors.
Long-Term Incentives
Under the terms of the Escalade, Incorporated 2007 Incentive Plan, executive officers of the Company are eligible to receive long term incentive compensation in various forms including stock options and restricted stock units. The Company’s Compensation Committee has full discretion over the form, amount and timing of these grants which historically have been annual grants. In its determination of annul grants, the Compensation Committee considers performance of both the individual and the Company.
Additional Benefits
Executive officers are eligible to participate in the Company’s 401(k) retirement plan and receive Company matching contributions in accordance with the plan terms. The Company also pays group term life insurance benefits on behalf of executive officers. The Company’s Chairman of the Board participates in a salary deferral plan that earns interest on undistributed amounts at the rate of 9% per annum.
