York International Corporation 2005 Senior Management Incentive Plan Participation Letter

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

York International Corporation has approved the recipient, a corporate executive, to participate in the 2005 Senior Management Incentive Plan (SMIP). The plan provides incentive compensation based on the company's performance in earnings per share, cash flow, and EBIT percentage, with payouts determined by achievement levels. Payments are made after audited results and require Board approval. If the executive leaves the company for certain reasons, payments may be prorated or forfeited. All targets are confidential and must not be shared outside the company.

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EX-10.2 3 w05290exv10w2.txt INCENTIVE COMPENSATION PLAN 2005, CORPORATE EXECUTIVES Exhibit 10.2 (YORK INTERNATIONAL CORPORATION LOGO) PERSONAL AND CONFIDENTIAL INTER-OFFICE CORRESPONDENCE TO: Corporate Executive FROM: DATE: RE: Senior Management Incentive Plan (SMIP) I am pleased to inform you that you have been approved by the Board of Directors to participate in the Senior Management Incentive Plan (SMIP) portion of the Company's Incentive Compensation Plan for fiscal year 2005. Please refer to the Incentive Compensation Plan for more details on the plan description and policies. For the 2005 fiscal year, your incentive compensation will be based on the following performance goals: 1. York International Earnings per Share (EPS) 2. York International Cash Flow 3. York International EBIT % There are three levels of achievement for each goal. The achievement level will be linearly pro-rated based on actual results. Goals and respective payout as a percentage of base salary is listed below ($ in millions except EPS):
WEIGHTING THRESHOLD TARGET MAXIMUM FACTOR --------- ------ ------- ------ EARNINGS PER SHARE (EPS) for York International $ $ $ Percent of Base Salary to be paid % % % % CASH FLOW for York $ $ $ International Percent of Base Salary to be paid % % % % EBIT % for York International % % % Percent of Base Salary to be paid % % % % Incentive Amount % % %
Distribution of the amount earned under the SMIP will be made after the Company's results for fiscal year 2005 have been audited. The actual timing, amounts and individual distribution of those amounts are predicated upon actual performance, and are ultimately approved by the Compensation Committee of the Board of Directors. In the event of death, disability, retirement or termination, other than for cause, payments will be prorated for the time of employment. If you voluntarily leave the company or are terminated for cause prior to the end of the year, any incentive payment will be forfeited. Targets are confidential information and may not be communicated outside of the Company, and should only be discussed internally on a need-to-know basis.