This excerpt taken from the MOLX DEF 14A filed Sep 10, 2009.
Annual Incentive Program for FY10
The Committee has approved a redesign of the annual cash incentive program for FY10 to strengthen the program and better support a pay-for-performance culture by incorporating divisional and business unit components into the plan, and developing an improved methodology to set performance goals that are reasonably achievable and allow for target payout when expectations are met. Payouts under the plan will be determined by considering a mix of corporate, divisional and/or business unit performance and performance against individual goals.
The short-term incentive program for FY10 will measure performance and payout incentives on a six-month basis beginning January 2010, rather than the previous 12-month basis, set goals twice each year effective July 1 and January 1 and make payouts after the close of each six-month period. Period-over-period growth in operating income will continue to be the performance metric. Threshold, target and maximum goals for operating income growth will be set for each performance period and such goals will be used to determine payouts. Positive operating income for the company as a whole will be a basic requirement for the payment of any incentive at any level (i.e., division and/or business unit).