MOLX » Topics » Annual Cash Incentives

This excerpt taken from the MOLX DEF 14A filed Sep 10, 2009.
Annual Cash Incentives
Annual cash incentives are provided under the Molex Annual Incentive Plan (the “AIP”) to reward executives both for Molex’s performance toward meeting corporate growth objectives and the executives’ performance toward meeting their individual objectives. This is a short-term annual incentive paid in cash pursuant to arrangements that cover all executive officers and provide that an incentive will be paid upon the achievement of two performance metrics: a quantitative performance measure, which makes up 80%, and performance against previously defined individual goals, which makes up the remaining 20%. The quantitative performance measure must be met in order for any payout to be earned. In other words, no matter how well an executive performed against individual goals, if the quantitative performance goal is not met then no cash incentive will be paid out. The Committee selects the performance measure at the beginning of each fiscal year. The annual cash incentive is targeted at the median of the peer group, and depending on Molex and individual performance, actual bonuses can vary widely.
Individual performance goals are established by the Committee and the CEO at the beginning of each fiscal year. These individual performance goals may be based on a variety of factors, including internal budget goals, investor expectations, peer company results, prior year Molex performance, upcoming fiscal year business plans and strategic initiatives, and may exclude specified items that are not reflective of the performance of the ongoing business. Each officer’s performance against individual goals is assessed at the end of the fiscal year.
For FY09, the Committee determined that incentives would be paid out upon the achievement of any incremental improvement in operating income (before restructuring charges) as compared to FY08, with target incentives set at 15% growth in operating income and maximum incentives set at 30% growth in operating income. Operating income is equal to gross profit less selling, general and


Table of Contents

administrative expense. The target and maximum award opportunities as a percent of base salary for our NEOs are as follows:
  Target     Maximum  
Martin P. Slark
    75 %     150 %
David D. Johnson
    60 %     120 %
Liam G. McCarthy
    60 %     120 %
Katsumi Hirokawa
    50 %     100 %
Graham C. Brock
    50 %     100 %

"Annual Cash Incentives" elsewhere:

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki