Kaiser Aluminum 2015-2017 Long-Term Incentive Umbrella Plan for Executives

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

Kaiser Aluminum established a 2015-2017 Long-Term Incentive (LTI) Umbrella Plan for select executives, including the CEO and other senior officers. The plan sets a performance goal based on achieving an average of $5 million per year in net cash from operating activities over three years. If the goal is met, a pool of company stock—up to 15% of total cash flow—will be allocated among the executives according to set percentages, with individual and annual maximums. The plan only governs incentive awards and does not affect severance or change-in-control benefits.

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EX-10.7 3 kaluexhibit107-3312015x10xq.htm 2015-2017 LTI UMBRELLA PLAN KALU Exhibit 10.7 - 3.31.2015 - 10-Q


Exhibit 10.7

2015-2017 LTI Umbrella Plan
2015-2017 Performance Goal and Award Pool            
The performance goal for the LTI Performance Period shall be an average of $5.0 million per year over the LTI Performance Period in Net cash provided by operating activities, as reported in the Company’s Statements of Consolidated Cash Flows (“Cash Flow”). The maximum value of shares of common stock issuable upon reaching performance goal shall equal 15% of the aggregate Cash Flow over the LTI Performance Period.
Allocation of Award Pool to Executives
Executive Name
Executive Title
Percent of Pool Allocated
to Executive1
Jack A. Hockema
Chief Executive Officer
56.4124%
Keith A. Harvey
EVP - Fabricated Products
15.8581%
John M. Donnan
EVP - Legal, Compliance and Human Resources
12.0257%
John Barneson
SVP - Corporate Development
  9.8672%
[Other Designated Participant]
[Designated Participant Title]
5.8366%

1 Subject to an aggregate maximum value per executive of $5.0 million and an aggregate maximum of 500,000 shares of common stock per executive per calendar year, pursuant to the Equity Incentive Plan.

Administrative Provisions

The 2015-2017 LTI Umbrella Plan only applies to the calculation and award of incentive awards, if any. There will be no duplication of benefits created by the 2015-2017 LTI Umbrella Plan.

The 2015-2017 LTI Umbrella Plan will not increase any benefits that may be payable under any severance and/or change in control agreements