Description of Performance Goals for 2006–2008 Cash Performance Plan under 1997 Long-Term Incentives Plan (ArvinMeritor, Inc.)
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Summary
ArvinMeritor, Inc.'s Compensation and Management Development Committee set up a cash performance plan for employees for the period ending September 30, 2008, under its 1997 Long-Term Incentives Plan. Employees were assigned target cash awards based on their salary grade. Actual payouts, which could be between 0% and 300% of the target, depend on how ArvinMeritor's total shareholder return compares to other automotive suppliers. The final payout is further adjusted by a multiplier based on changes in ArvinMeritor's stock price over the three years.
EX-10.B6 3 d18155_ex10-b6.htm
Exhibit 10-b-6
DESCRIPTION OF PERFORMANCE GOALS
ESTABLISHED IN CONNECTION WITH 2006–2008 CASH PERFORMANCE PLAN UNDER
THE 1997 LONG-TERM INCENTIVES PLAN
ESTABLISHED IN CONNECTION WITH 2006–2008 CASH PERFORMANCE PLAN UNDER
THE 1997 LONG-TERM INCENTIVES PLAN
The Compensation and Management Development Committee of the Board of Directors of ArvinMeritor, Inc., established a cash performance plan for the three-year performance period ending September 30, 2008, under Section 7C of the 1997 Long-Term Incentives Plan, as amended. Target cash awards were established for each grantee based on his salary grade. Payouts under the performance plan, which can range from 0% to 300% of each individual’s target award, are dependent on ArvinMeritor’s total shareholder return (defined as cumulative stock price appreciation plus dividends) compared to that of other automotive suppliers over the performance period. Payouts are also adjusted by applying a stock price multiplier, which can range from 50% to 200%, that measures the change in ArvinMeritor’s stock price over the three-year period.
