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Purpose
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Reward
achievement of two year goals
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Eligibility
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Key
managers and above identified on an individual basis.
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Performance
Period
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Two-
year overlapping performance periods are used.
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Performance
Measures
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Funding
to be based on performance versus the following measures:
§ 60%
overall Brunswick financial goals weighted 50% Corporate Brunswick
Value
Added (BVA) and 50% Earnings per Share (EPS). BVA defined as profits
after-tax; reduced for cost of capital charge (capital to include
working,
fixed and other assets; cost of capital will include debt and
equity)
§ 40%
performance against Strategic Factors.
§ For
Division employees based on Division’s strategic factor
performance
§ For
headquarters employees based on average of all Division
results
§ Factors
include:
§ Customer
satisfaction
§ Growth
in market share
§ Product
innovation (percent of sales from new products)
§ Employee
satisfaction
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Funding
Review and Approval
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The
following steps will be taken to review and approve funding:
§ CFO
will review actual results quarterly to evaluate established
accruals.
§ CEO
will review performance at end of performance period and approve
funding
or recommend funding to Human Resource and Compensation Committee
as
appropriate.
§ Committee
will review and approve funding as deemed appropriate.
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Individual
Awards
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Individual
awards will be determined on a discretionary basis using overall
Brunswick
performance, evaluation of individual performance for the performance
period, target incentives as a percent of salary and covered salary
(actual paid for final year of performance period).
Individuals
must be employed at end of performance period to receive an award,
except
those terminating due to death or permanent and total disability
will be
eligible to receive individual awards.
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Timing
of Award Payments
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As
soon as practical after financial results are confirmed and appropriate
approvals obtained.
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