2005 Salary and Target Bonus Schedule for Named Executive Officers of [Company Name]

Summary

This document outlines the 2005 annual salaries and target bonuses for the company's top executives, including the Chairman, CFO, and other senior officers. Salaries and target bonuses are specified for each executive. Bonus payments depend on the company's financial performance, specifically EBIT and operating cash flow, and may be adjusted based on individual performance. The total bonus pool can vary from zero to double the target amount, depending on results. Payments are subject to the achievement of financial targets set by the Compensation Committee.

EX-10.3 5 l17860aexv10w3.htm EX-10.3 SCHEDULE OF SALARY & BONUS FOR NAMED EXEC OFFICERS EX-10.3

Exhibit 10.3

Schedule of 2005 Salary and Target Bonus for Named
Executive Officers (as defined in Item 402(a)(3) of Regulation S-K)

Effective May 1, 2005, the annual salary compensation for each of the Named Executive Officers is:

Robert J. Keegan, Chairman of the Board, Chief Executive Officer and President, $1,100,000.

Richard J. Kramer, Executive Vice President and Chief Financial Officer, $461,100;

C. Thomas Harvie, Senior Vice President, General Counsel and Secretary, $446,100;

Jonathan D. Rich, President, North American Tire, $445,200; and

Joseph M. Gingo, Executive Vice President, Quality Systems and Chief Technical Officer, $376,000.

Target bonuses for 2005 under the Company’s Performance Recognition Plan for each of the Named Executive Officers are:

Mr. Keegan, $1,500,000;

Mr. Kramer, $330,000;

Mr. Rich, $385,000;

Mr. Harvie, $290,000; and

Mr. Gingo $260,000.

Payment of 2005 bonuses will be made from a payment pool, the size of which will depend on the extent to which the specific financial performance targets established by the Compensation Committee are met. The target aggregate payment pool for 2005 is $28.0 million. Earnings before interest and taxes less finance charges (“EBIT”) and operating cash flow are the financial performance measures under the Performance Recognition Plan for fiscal year 2005. Funding of the 2005 payment pool will be based 50% on each performance measure and could range from zero to 200% of the target amount depending on the level of operating cash flow and EBIT achieved. In addition, payouts for each of the Named Executive Officers may be adjusted based on individual performance.