Parker-Hannifin Corporation 2003 Target Incentive Bonus Plan Description

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

Parker-Hannifin Corporation has established a 2003 Target Incentive Bonus Plan for its executive officers and Group Presidents. The plan awards bonuses based on the company's performance, specifically its pre-tax return on average assets (ROAA) for fiscal year 2003. Bonus payouts can range from 15% to 150% of a participant's target award, depending on how closely the company meets its planned ROAA of 8.0%. If a payout would cause an executive's compensation to exceed the $1 million tax-deductible limit, the excess will be deferred to a later year.

Read More Arrow
EX-10.M 3 dex10m.txt 2003 TARGET INCENTIVE BONUS PLAN DESCRIPTION Exhibit (10)(m) Exhibit (10)(m)* to Report on Form 10-K for Fiscal Year Ended June 30, 2002 by Parker-Hannifin Corporation Parker-Hannifin Corporation 2003 Target Incentive Bonus Plan Description. * Numbered in accordance with Item 601 of Regulation S-K. PARKER-HANNIFIN CORPORATION 2003 TARGET INCENTIVE BONUS PLAN A. Payments earned under the Bonus Plan depend upon the Company's performance against a pre-tax return on average assets (ROAA) schedule which is based upon the Fiscal Year 2003 operating plan. B. The payout under the Plan ranges from 15% to 150% of each participant's target award, with 100% payout set at achievement of fiscal year 2003 planned ROAA. C. Any payout pursuant to the Plan that will result in the exceedance of the $1 million cap on the tax deductibility of executive compensation will be deferred until such time in the earliest subsequent fiscal year that such cap will not be exceeded. D. Participants: All of the executive officers of the Company, plus Group Presidents who are not executive officers. E. Fiscal year 2003 Planned ROAA: 8.0% ROAA Payout Schedule -------------------- FY03 Percentage of Target ROAA Award Paid* ---- -------------------- <2.6% 0 % 2.6% 30 % 2.9% 34.5% 3.4% 40 % 4.2% 50 % 4.9% 60 % 5.7% 70 % 6.5% 80 % 7.2% 90 % 8.0% 100 % 8.4% 113 % 8.9% 125 % 9.3% 138 % 9.8% 150 % * fiscal year 2003 roaa less than 2.9% will reduce the amount paid by 50%. f. roaa will not include the impact of: 1. environmental costs in excess of planned amounts 2. acquisitions/divestitures 3. gains or losses on currency transactions