Exhibit 99.2
MID-TERM COMPENSATION PLAN (MTIP)
• | The purpose of MTIP: |
• | (1) Focus executives on aggressive mid-term strategic goals; |
• | (2) provide a performance-based opportunity to earn shares of Company stock. |
• | Awards are tied to achievement of the three-year strategic plan created in 2004, with target awards equal to each individual’s 2004 target ICP percentage. |
• | Effective annual award equal to 16.67% of base earnings |
• | Earned awards will be paid 50% in cash and 50% in restricted stock units |
• | Restricted stock units vest 100% three years after they are earned |
• | Awards are based 50% on three-year average revenue growth and 50% on achievement of cumulative free-cash-flow-return-on-average-capital-employed (i.e., cumulative free cash flow ÷ weighted avg. equity + debt). |
Company Performance Goals for the Period 1/1/04 to 12/31/06 | ||||||||||||
Performance Measures | Weight | Threshold | Target | Maximum | ||||||||
Three-year Average Revenue Growth | 50 | % | * | * | * | * | * | * | ||||
Cumulative % Free-Cash-Flow-Return-on-Average-Capital-Employed | 50 | % | * | * | * | * | * | * | ||||
Potential Payout as % of Target | 100 | % | 50 | % | 100 | % | 200 | % |
** | Specific financial targets set by the Board |
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