Fiscal 2012 Executive Compensation Schedule for Named Officers of Smithfield Foods, Inc.

Contract Categories: Human Resources › Compensation Agreements
Summary

This document outlines the annual base salaries and cash incentive formulas for five top executives of Smithfield Foods, Inc. for fiscal year 2012. Each executive's bonus is tied to a percentage of pre-tax profits, with specific caps and calculation methods for each role. The agreement details how incentives are determined based on company or division performance, ensuring compensation aligns with financial results. The terms specify the maximum bonus amounts and the profit thresholds that trigger different incentive rates.

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EX-10.6 2 sfdq1fy12ex106.htm EXHIBIT 10.6 SFD Q1 FY12 EX 10.6


Exhibit 10.6

Certain Compensation for Named Executive Officers
for Fiscal 2012

Name
Principal Position
Annual
Base Salary
Annual
Cash
Incentive (1)
C. Larry Pope
President and Chief Executive Officer
$
1,100,000

(2)
Robert W. Manly, IV
Executive Vice President and Chief Financial Officer
$
700,000

(3)
George H. Richter
President and Chief Operating Officer, Pork Group
$
800,000

(4)
Joseph B. Sebring
President of John Morrell
$
700,000

(5)
Jerry H. Godwin
President of Murphy-Brown
$
750,000

(6)
——————————————
(1)
For the annual cash incentive awards, “pre-tax profits” are generally defined as net income before deduction for income taxes and incentive payments to key employees.
(2)
The annual cash incentive formula for Mr. Pope is equal to 1% of Company pre-tax profits subject to a cap of $8 million.
(3)
The annual cash incentive formula for Mr. Manly is equal to 0.50% of Company pre-tax profits subject to a cap of $3 million.
(4)
The annual cash incentive formula for Mr. Richter is equal to 0.50% of Pork Group pre-tax profits subject to a cap of $4 million.
(5)
The annual cash incentive formula for Mr. Sebring is equal to 0.25% of Pork Group pre-tax profits subject to a cap of $2.8 million.
(6)
The annual cash incentive formula for Mr. Godwin is equal to:
▪
0% of the first $50 million of Murphy-Brown pre-tax profits,
▪
0.5% of Murphy-Brown pre-tax profits in excess of $50 million and less than $100 million, and
▪
1.0% of Murphy Brown pre-tax profits in excess of $100 million.