Huffy Corporation Long Term Incentive Compensation Plan for Corporate Officers and Company Presidents

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines Huffy Corporation's Long Term Incentive Compensation Plan for its corporate officers and company presidents. The plan provides cash awards based on performance over a three-year period, with targets and maximums set as a percentage of base salary. Awards are determined by specific financial metrics, including Return on Net Assets, Earnings Per Share, and Total Shareholder Return. Eligibility, award calculation, and payment terms are detailed, with provisions for new hires, promotions, transfers, and terminations. The plan is subject to approval and interpretation by the company's Compensation Committee and General Counsel.

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EX-10.F 7 l05781aexv10wf.txt EXHIBIT 10(F) EXHIBIT 10.f POLICY HUFFY CORPORATE OFFICERS AND HUFFY COMPANY PRESIDENTS SHALL PARTICIPATE IN A LONG TERM INCENTIVE COMPENSATION PLAN TO PROVIDE A FOCUS CONSISTENT WITH SHAREHOLDERS' LONGER TERM EXPECTATIONS AND WITH MARKET COMPETITIVE COMPENSATION LEVELS.
Award as a % of Base Salary --------------------------- I. Participants Target Maximum ------------ ------ ------- A. Chairman, President and Chief 50% 100% Executive Officer B. Vice President-Finance, 25% 50% Chief Financial Officer and Treasurer Vice President and Controller Vice President - General Counsel & Secretary President & General Manager - HBC President & General Manager - HSC President & General Manager - HSF C. Group President & General Manager - HSG 30% 60% (REV) Group President & General Manager - Gen-X
II. Measurement Awards shall be based on performance of measures weighted as follows:
Corporate Officers Huffy Company Presidents ------------------ ------------------------ 1. Corporate RONA - 33-1/3% 1. Huffy Company RONA - 50% 2. EPS - 33-1/3% 2. Corporate EPS - 25% 3. TSR - 33-1/3% 3. Corporate TSR - 25%
A. Award Cycle Each award cycle shall be a three calendar year performance period. B. Salary Basis Awards under this plan are to be based upon the participant's actual base salary as of December 31st at the end of each award cycle. C. Definitions Corporate RONA: Consolidated Return On Net Assets as defined in Policy Number 128. Huffy Corporate RONA: As defined in Policy Number 128. EPS: Earnings per common share. TSR: Total Shareholder Return is the annual average rate of growth calculated as: (Stock Price + Dividends Declared) - Stock Price EOY BOY = TSR; -------------------------------------------------------- ---- Stock Price BOY adding such TSR increases and/or decreases for each calendar year in the LTIP cycle; - ------------------------------------------------------------------------------- Part No. TS 136 Page 1 of 4 and dividing the result by 3 (the number of calendar years in the LTIP cycle). Stock Price BOY: Beginning Of Year stock price means the arithmetic average of the closing price of Huffy Common Stock on each Friday during the final calendar quarter of the preceding year. Stock Price EOY: End Of Year stock price means the arithmetic average of the closing price of Huffy common stock on each Friday during the final calendar quarter of the year. D. Goals: Goals for each measure shall be the goals set for the final year of the award cycle, approved by the Compensation Committee of the Board of Directors. (NOTE: TSR results for any performance period shall be calculated as defined in II.C. above). E. Award Scales(1)
Actual Huffy/Corporate % of Award Results versus Goal Earned ------------------------ ------------ Less than 90% 0% 90% Threshold 50% 95% 75% 100% Target 100% 105% 133-1/3% 110% 155-2/3% 115% Maximum 200%
III. Payment Forms and Manner 100% of the award earned in each award cycle shall be paid in cash as soon as practicable following completion of an award cycle subject to approval of such payments by the Compensation Committee of the Board of Directors. IV. Implementation Individuals in an eligible position as of the first business day of the calendar year will be eligible for 100% of the award cycle beginning in such year and a pro-rated portion of other award cycles currently in process. Generally, individuals newly hired or newly promoted to an eligible position after the first business day of the year will be eligible for a pro-rated award for the award cycle commencing in the year of hire and other award cycles currently in process based on the number of full calendar quarters remaining in the award cycles. However, no individual who becomes an eligible participant after June 30 will be eligible for any award for the award cycle ending in the year of hire or promotion from an ineligible to an eligible position. Currently participants who are transferred or promoted to another position will be eligible for pro-rated awards based on the number of full and partial quarters worked in the old and new position for award cycles in progress. However, transfers and promotions occurring after June 30 for an award cycle ending in the year of transfer or promotion will be treated as having worked in the old position for 100% of that award cycle. Employees who are transferred to a non-eligible position for any reason other than health will not - ------------------------------------------------------------------------------- Part No. TS 136 Page 2 of 4 be eligible for payment of any award cycle. If an employee is transferred to a non-eligible position due to health reasons, deemed acceptable to the Chief Executive Officer in his sole discretion, the employee will be eligible for a pro-rated award based on the number of full calendar quarters during which the employee was in eligible position. However, no award will be earned for an award cycle in which the employee was not an eligible participant for at least two full calendar quarters. Employees who terminate employment by reason of disability (as deemed disabled by the Corporation's long-term disability insurance carrier), early or normal retirement or by death shall be eligible for a pro-rated award based on the number of full calendar years completed for any award cycle. Payment due to participants who are deceased will be made to the estate of deceased participants. V. Distribution Distribution shall be limited to Corporate Officers, Huffy Company Presidents and Vice President Human Resources. Interpretation and Exceptions Interpretation and exceptions to this policy will be the responsibility of the Vice President - General Counsel and Secretary. - ------------------------------------- ----------------------------- Vice President - General Counsel Chairman, President and and Secretary Chief Executive Officer - ------------------------------------------------------------------------------- Part No. TS 136 Page 3 of 4