Exhibit 10.20
2003 2004 STRATEGIC INCENTIVE PLAN (SIP)
Purpose | Reward achievement of two year goals. | |||||
Eligibility | Key managers and above identified on an individual basis. | |||||
Participation Level | Individual awards are based on salary paid in final year of two-year performance period. | |||||
Target Incentives | Sum of target incentive opportunity as a percent of salary times salary for all eligible participants. | |||||
Performance Measures | Funding to be based on performance versus the following measures: | |||||
Ø | 60% overall Corporate Brunswick Value Added (BVA). 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). | |||||
Ø | 40% performance against Strategic Factors: |
| For Division employees based on Divisions 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 |
Performance Levels: |
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Ø Threshold
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Ø | Minimum performance level supporting the funding of any variable incentive pay. | ||||
Ø Target
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Ø | Agreed upon performance level, typically tied to business plans for performance period. | ||||
Ø Stretch
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Ø | Performance necessary to support funding at twice target level. | ||||
Performance Period | Two-year overlapping performance periods will be used. | |||||
Overall Funding | Overall funding will be the sum of BVA funding and strategic factor funding. | |||||
Funding Review and Approval |
The following steps will be taken to review and approve funding: | |||||
Ø | CFO will review actual results quarterly to evaluate established accruals. | |||||
Ø | CEO will review performance at end of performance period and approve funding or recommend funding to Human Resource and Compensation Committee. | |||||
Ø | Committee will review and approve funding. | |||||
Maximum Funding | None | |||||
Individual Awards | Individual awards will be determined on a discretionary basis using evaluation of individual performance for the performance period, target incentives as a percent of salary and covered salary (actual received for final year of performance period). | |||||
Individuals must be employed through end of performance period to receive an award, except those terminating due to death or permanent and total disability will be eligible to receive awards. | ||||||
Timing of Award Payments |
As soon as practical after financial results are confirmed and appropriate approvals obtained. |
Nothing contained in these materials constitutes or is intended to create a promise of an individual incentive award or a contract of continued employment. Employment is at-will and may be terminated by either the employee or Corporation for any reason at any time.