Rohm and Haas 2006 Executive Salary and Incentive Compensation Agreement
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Summary
This agreement outlines the 2006 salary and incentive compensation for Rohm and Haas executive officers Raj L. Gupta, Alan E. Barton, Pierre R. Brondeau, Jacques M. Croisetiere, and Robert A. Lonergan. It specifies base salaries, annual incentive compensation based on Return on Net Assets (RONA) performance, and long-term incentive compensation for 2006-2008 based on three-year average RONA and Total Shareholder Return (TSR). Awards may vary depending on performance, with payouts in stock and cash, and are subject to specific performance targets and timeframes.
EX-10.2 3 w17445exv10w2.htm SALARY AND ANNUAL INCENTIVE COMPENSATION TO BE EARNED IN 2006 AND LONG TERM INCENTIVE COMPENSATION TO BE EARNED IN 2006-08 exv10w2
Exhibit 10.2
Salary and Annual Incentive Compensation to be Earned in 2006 and Long-Term Incentive Compensation to be Earned in 2006-08
Salary
| Name | Salary (as of April 1, 2006) | |||
Raj L. Gupta | $ | 1,005,000 | ||
Alan E. Barton | $ | 430,000 | ||
Pierre R. Brondeau | $ | 430,000 | ||
Jacques M. Croisetiere | $ | 430,000 | ||
Robert A. Lonergan | $ | 380,600 | ||
Annual Incentive Compensation to Be Earned in 2006. For 2006, the Executive Compensation Committee established a Return on Net Assets (RONA) goal as the performance criterion to be used in determining corporate awards under the Annual Incentive Plan. A graduated award schedule based on RONA performance will pay executive officers from 0 to 150% of base salary depending on RONA performance and job level.
Long-Term Incentive Compensation to Be Earned during 2006-08. For the 2006-08 performance cycle, the Executive Compensation Committee established performance standards for the executive officers under the Long-Term Performance Share Plan. Actual awards will be determined using three year average Return on Net Assets (RONA) and three year relative Total Shareholder Return (TSR) as the performance criteria. The payouts in number of shares shown in the Target column assume that Rohm and Haas’s performance matches both the RONA target and the TSR of a peer group of comparison companies. The payouts shown in the Threshold column indicate the lowest possible payout (other than zero), representing 12.5% of the target number of shares. The payouts shown in the Maximum column reflect the highest potential payouts of 162.5% of the target number of shares. Future payouts in the chart below are estimated using the average closing fair market share price for the month of January 2006. Actual dollar value of payouts (which will be paid half in stock and half in cash) will depend upon the average closing fair market share price for the month of December 2008.
| Estimated Future | ||||||||||||||||||||
| Performance or | Payouts Under | |||||||||||||||||||
| Number of | Other Period | Performance Share Plan | ||||||||||||||||||
| Shares, Units | Until Maturation | Threshold | Target | Maximum | ||||||||||||||||
| Name | or Other Rights | or Payout | (# of shares) | (# of shares) | (# of shares) | |||||||||||||||
R. L. Gupta | $ | 1,920,250 | 12/31/2008 | 4,883 | 39,063 | 63,477 | ||||||||||||||
A. E. Barton | 445,000 | 12/31/2008 | 1,132 | 9,052 | 14,710 | |||||||||||||||
P. R. Brondeau | 445,000 | 12/31/2008 | 1,132 | 9,052 | 14,710 | |||||||||||||||
J. M. Croisetiere | 445,000 | 12/31/2008 | 1,132 | 9,052 | 14,710 | |||||||||||||||
R. A. Lonergan | 390,000 | 12/31/2008 | 992 | 7,934 | 12,893 | |||||||||||||||
