GGG » Topics » Compensation of the Chief Executive Officer

This excerpt taken from the GGG DEF 14A filed Mar 14, 2006.

Compensation of the Chief Executive Officer

        On an annual basis, the Committee is responsible for reviewing the individual performance of the Chief Executive Officer, and determining appropriate adjustments in base pay and award opportunities under the Executive Incentive Bonus Plan and the Stock Incentive Plan.

        In 2005, Mr. Roberts served as Chief Executive Officer of the Company. The Committee, using salary survey data, established Mr. Roberts' base salary at $561,000 per year. This data was based on comparably sized durable goods manufacturing companies, as published in independent third-party executive compensation surveys. Mr. Roberts earned a bonus award available under the Executive Incentive Bonus Plan of $781,769, which is equal to 139% of his base salary. The 2005 bonus award was based upon the achievement of specified levels of corporate net sales and net earnings growth of the Company. Sales of $731.7 million in 2005 represents an increase in sales of 21% from 2004, and net earnings of $125.9 million in 2005 represent an increase in net earnings of 16% from 2004, which, together, led to the payout award.

        Review of the 2005 performance of the Chief Executive Officer was conducted by the Committee. Based on this review and using salary survey data for manufacturing companies of comparable sales volume, the Committee increased Mr. Roberts' base salary from $561,000 to $617,000, effective January 1, 2006. For 2006, Mr. Roberts will participate in the Executive Incentive Bonus Plan, with a minimum payout of 0% up to a maximum payout of 150% of base salary paid if the maximum targets specified by the Committee are achieved.



     
  The Members of the Committee
    Ms. Martha A. M. Morfitt, Chair
    Mr. Robert G. Bohn
    Mr. William J. Carroll
    Mr. Jack W. Eugster
    Mr. J. Kevin Gilligan
    Mr. Lee R. Mitau
    Mr. Mark H. Rauenhorst
This excerpt taken from the GGG DEF 14A filed Mar 10, 2005.

Compensation of the Chief Executive Officer

        On an annual basis, the Committee is responsible for reviewing the individual performance of the Chief Executive Officer, and determining appropriate adjustments in base pay and award opportunities under the Executive Incentive Bonus Plan and the Stock Incentive Plan.

        In 2004, Mr. Roberts served as Chief Executive Officer of the Company. The Committee, using salary survey data, established Mr. Roberts’ base salary at $510,000 per year. These data were based on comparably sized durable goods manufacturing companies, as published in independent third party executive compensation surveys. Mr. Roberts earned the maximum bonus award available under the Executive Incentive Bonus Plan of $510,000, which is equal to 100% of his base salary. The 2004 bonus award was based upon the achievement of specified levels of net sales and net earnings of the Company. Sales of $605.0 million in 2004 represent an increase in sales of 13% from 2003, which led to the maximum payout attributable to sales, which was 50% of the total payout. Net earnings of $108.7 million in 2004 represent an increase in net earnings of 25% from net earnings in 2003, which led to the maximum payout attributable to net earnings, which was 50% of the total payout. In addition, in recognition of the Company’s outstanding financial performance, which substantially exceeded the Company Performance Targets established for 2004, the Committee granted Mr. Roberts an additional bonus of $ 100,000.

        Review of the 2004 performance of the Chief Executive Officer was conducted by the Committee. Based on this review and using salary survey data for manufacturing companies of comparable sales volume and financial performance, the Committee increased Mr. Roberts’ base salary from $510,000 to $561,000, effective January 1, 2005. For 2005, Mr. Roberts will participate in the Executive Incentive Bonus Plan, with a minimum payout of 0% up to a payout of 100% of base salary paid if the maximum targets specified by the Committee are achieved. In addition, Mr. Roberts will be awarded up to an additional 50% of base salary paid if such maximum targets are exceeded by amounts specified by the Committee.

     
  The Members of the Committee
    Ms. Martha A. Morfitt, Chair
    Mr. Robert G. Bohn
    Mr. William J. Carroll
    Mr. Jack W. Eugster
    Mr. J. Kevin Gilligan
    Mr. Lee R. Mitau
    Mr. Mark Rauenhorst
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