This excerpt taken from the ATU 8-K filed Oct 16, 2006.
Fiscal 2007 Bonus Targets
The fiscal 2007 bonus plan for corporate executives (Arzbaecher, Lampereur, Boel) will be based on year-over-year improvement in Actuants Consolidated Combined Management Measure (CMM) (80%) and performance against a low cost country sourcing target (10%) and a sales growth target (10%). The fiscal 2007 bonus plan for segment leaders (Goldstein, Blackmore) will be based on year-over-year improvement in segment CMM (60%), year-over-year improvement in Actuants consolidated CMM (20%), and performance against a low cost country sourcing target (10%) and a sales growth target (10%).
Consolidated CMM = Net earnings before interest, taxes, and amortization less Asset Carrying Charge of 20% of net debt, shareholders equity and accumulated amortization of intangible assets
Segment CMM = Operating Profit (before amortization) less Asset Carrying Charge of 20% of Net Assets Employed
Net Assets Employed = Net accounts receivable + net inventory + prepaid assets + net fixed assets + other long-term assets (excluding intangible assets) - accounts payable accrued current liabilities
- 2 -
The Company will provide additional information regarding compensation of its executive officers in its Proxy Statement for the Annual Meeting of Shareholders to be held on January 16, 2007. The Proxy Statement is expected to be filed in December 2006.
- 3 -
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
- 4 -