Wausau Paper Corp. Incentive Compensation Plan for Executive Officers

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

Wausau Paper Corp. has established an incentive compensation plan for its executive officers, including the CEO and various senior vice presidents. Under this plan, executives may receive annual bonuses based on the achievement of company-wide financial targets, segment operating profits, and individual performance objectives. The maximum bonus is a percentage of each executive's base salary, with specific percentages set for each role. The plan outlines how bonuses are calculated and specifies that certain financial targets are confidential. Bonuses are only awarded if performance meets or exceeds the targeted ranges.

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EX-10.3 5 wpex103.txt WP INCENTIVE COMPENSATION PLAN FOR EXECUTIVE OFFICERS Exhibit 10.3 WAUSAU PAPER CORP. INCENTIVE COMPENSATION PLAN FOR EXECUTIVE OFFICERS Executive officers are entitled to receive incentive compensation with respect to each fiscal year upon achievement of targeted company or personal objectives. The following table sets forth, as a percentage of base salary, the maximum incentive compensation opportunity for executive officers.
Percentage of Base Salary Segment Earnings Operating Individual Total Per Share(1) Profit(2) Objectives(3) Maximum CEO 120% - 30% 150% Executive Vice President, Administration 95% - 30% 125% Senior Vice President, Finance 95% - 30% 125% Senior Vice President, Engineering and Environmental Services 95% - 30% 125% Senior Vice President, Printing & Writing 35% 60% 30% 125% Senior Vice President, Specialty Products 35% 60% 30% 125% Senior Vice President, Towel & Tissue 35% 60% 30% 125% (1)For purposes of this plan, "earnings per share" means earnings per share as reported in the Company's audited financial statements, excluding the impact of stock incentive and bonus expenses, decreased by amounts representing assumed base gains from timber sales, and adjusted for other extraordinary items as determined in the discretion of the Compensation Committee. Incentive bonuses will be 0% of base salary if earnings are at the bottom of the targeted range of earnings per share and will increase on a pro rata basis to the officer's maximum of percentage of base salary at the top of the targeted range. The Company believes the earnings per share targets represent confidential business information, the disclosure of which would adversely affect the Company and has determined that it is not in the best interests of the Company to disclose such information. (2)The Company believes the segment operating profit targets represent confidential business information, the disclosure of which would adversely affect the Company and has determined that it is not in the best interests of the Company to disclose such information. Incentive bonuses will be 0% of base salary if operating profits are at the bottom of the targeted range for the officer's respective operating segment's targeted operating profit and will increase on a pro rata basis to the officer's maximum percentage of 60% of base salary at the top of the targeted range. (3)Individual performance objectives established at the beginning of the year by the Compensation Committee for the CEO and by the CEO for other executive officers.