Summary of Non-Employee Director Compensation Arrangements for Molex Incorporated (Effective October 27, 2006)
This document outlines the compensation plan for non-employee directors of Molex Incorporated. Directors receive an annual cash retainer of $60,000, plus fees for attending board and committee meetings. Additional fees are provided for chairing committees. Directors also receive annual stock option grants, with the number of shares based on years of service and company financial performance. The maximum annual grant is capped at 3,000 shares or $100,000 in value. All payments are made quarterly, and equity awards are subject to specific financial conditions.
EXHIBIT 10.1 Summary of Non-Employee Director Compensation Arrangements (Effective October 27, 2006) |
Cash Compensation: | |
Annual Retainer (1) | $60,000 |
Board Meeting Fee | $3,000 |
Committee Meeting Fee | $2,000 |
Audit Committee Chairperson Meeting Fee | $4,000 |
Other Committee Chairperson Meeting Fee | $3,000 |
Equity Compensation: | |
Annual Automatic Non-discretionary Grant of Stock Options | 200 shares multiplied by the number of years of service or fraction thereof (2) |
(1) All retainer and meeting fees are payable quarterly. (2) The amount of shares increases to 500 multiplied by the number of years of service or fraction thereof, if the following two financial conditions are met for the fiscal year ended immediately prior to the grant: · Molex’s net profits (after taxes) are at least 10% of the net sales revenues; and · Molex’s net sales revenue increased at least 1.5 times the “Worldwide Growth” of the general connector market as compared to the previous year’s net sales revenue. For purposes of determining the Worldwide Growth, the Compensation Committee chooses one or more outside independent sources. Notwithstanding the foregoing, the number of shares subject to the annual option given to each non-employee director cannot exceed 3,000 shares or an amount whose fair market value on the date of grant is greater than $100,000. |
