Amended and Restated Short-Term Incentive Plan for Technitrol Executives

Summary

This agreement outlines Technitrol's Amended and Restated Short-Term Incentive Plan (STIP) for its executives. The plan sets annual financial targets and creates a bonus pool based on company and individual performance. Executives are eligible for incentive payouts if specific profit and earnings goals are met, with payouts varying depending on the level of achievement. The Compensation Committee oversees the plan, approves payouts, and retains discretion to adjust awards. The plan is reviewed and updated semi-annually, and segment presidents allocate awards to their teams in consultation with the CEO.

EX-10.15 4 d60158_ex10-15.txt AMENDED AND RESTATED SHORT-TERM INCENTIVE PLAN Exhibit 10.15 Amended and Restated Short-Term Incentive Plan A. Purpose Establish and reinforce an entrepreneurial culture which values smart risk-taking and continuous innovation to maximize operating results and shareholder value. This executive compensation philosophy is best described as "high risk, high reward". B. Short-Term Incentive Plan (STIP) 1. Targets for Economic Profit (EP), Net Operating Profit (NOP) and Earnings Per Share (EPS) are established annually as part of the Fall Contract and Spring Update. Targets must be achieved after payment of STIP and charges for restricted stock and stock options. 2. STIP has one funding pool based on: a. EP and NOP for the two Business Segments (AMI DODUCO and Pulse). b. EP and EPS for Technitrol Corporate. 3. Achievement of the targets for EP, NOP and EPS (net of all bonuses paid) creates one pool for eligible and participating executives. The amount of the pool is based on business performance, specific incentive targets for each executive and individual executive performance. This one incentive pool is created by multiplying each executive's base salary times the incentive percentage designated by Technitrol's external compensation consultant for each position. The intention of the BOD's Compensation Committee is to award the entire pool, once earned; but it (the Compensation Committee) retains the discretion to raise or lower the pool total, as dictated by overall business performance. STIP, if earned, is paid twice a year as follows: a. Less than 80% of Target, no STIP Payout. b. Greater than 80%, but less than 100% of Target, STIP Payout = 40% of full STIP. c. 100% of Target, STIP Payout = 100% of full STIP. d. Greater than 100% of Target up to 120% of Target, STIP Payout = 200% of full STIP. 4. Individual performance modifiers of 0-150% of target award can be applied at management discretion. The sum of the individual modifiers will not exceed 10% of the aggregate pool amounts (i.e., 110% of the calculated, earned pool). 1 5. Targets for EP, NOP and EPS vary semi-annually. Payouts for the 1H of each year are tied to the Fall Contract; and STIP awards, if earned, for the 2H are tied to the Spring Update. 6. The Compensation Committee approves the pool total, when earned and calculated. 7. The CEO recommends to the Committee awards for the corporate officers and the two Segment presidents. The Compensation Committee reviews and approves the STIP awards for the CEO and corporate officers. 8. The President of each Segment allocates the pool for his executives based on their targets and performance, in consultation with the CEO. 9. The Segments may establish incentive plans for employees below the level of the 31 executives in the STIP Plan. 2