Summary of Fiscal 2007 Target Short-Term Incentive Percentages for Named Executive Officers of Lennox International Inc.

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

Lennox International Inc.'s Board of Directors set target short-term incentive percentages for its top executives for fiscal year 2007. The incentives, based on net income and cash flow performance, range from 70% to 110% of each executive's annual base salary. For executives who are also business segment presidents, half of the incentive is tied to their segment's results and half to the company's overall results. Payments can range from 50% to 225% of the target amount, depending on performance against defined metrics.

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EX-10.1 2 d42102exv10w1.htm SUMMARY OF FISCAL 2007 TARGET SHORT-TERM INCENTIVE PERCENTAGES exv10w1  

Exhibit 10.1
Summary of Fiscal 2007 Target Short-Term Incentive Percentages for the
Named Executive Officers of Lennox International Inc.
     On December 8, 2006, the Board of Directors of Lennox International Inc. (the “Company”), upon recommendation of the Company’s Compensation Committee, established target short-term incentive percentages for each of Robert E. Schjerven, the Company’s Chief Executive Officer, Harry J. Ashenhurst, Ph.D., the Company’s Executive Vice President and Chief Administrative Officer, Scott J. Boxer, the Company’s Executive Vice President and President and Chief Operating Officer of Service Experts Inc. and Susan K. Carter, the Company’s Executive Vice President and Chief Financial Officer, ranging from 70% to 110% of the named executive officer’s annual base salary based on performance metrics comprised of net income and cash flow. For named executive officers that are also Presidents of a business segment, 50% of such executive officer’s target will be based on his business segment’s results and 50% will be based on aggregate results of the Company. 50% of the target payment may be achieved with the defined threshold performance and up to 150% of the target payment may be achieved with the defined maximum performance. In addition, for performance above the maximum level, each business segment may select, among specified performance metrics, one performance metric to function as a multiplier of 1.0 to 1.5 of the incentive payment as determined by the other metrics, resulting in a potential payment of up to 225% of the target payment.