EXHIBIT 99.01
DEL GLOBAL TECHNOLOGIES CORP.
SENIOR MANAGEMENT INCENTIVE PLAN
SUMMARY PLAN DESCRIPTION
FISCAL 2005
[NAME]
PURPOSE
The purpose of the Del Global Senior Management Incentive Plan is to incent
Senior Managers to lead the attainment of Company business goals and to reward
them for such performance achievement.
DEFINITIONS
The terms used in the description of the Senior Manager Incentive Plan are as
follows:
INCENTIVE PLAN YEAR. August 1, 2004 through July 30, 2005.
THE INCENTIVE PLAN GOALS. These are based upon Company Operating Income as
displayed in the Fiscal 2005 Business Plan, minus interest expense. No
adjustment to Operating Income can be made (for extraordinary or other
items) without the prior written approval of the Stock Option and
Compensation Committee of the Board of Directors.
COMPANY OPERATING INCOME is defined as Company Revenue received, minus
cost of goods sold (COGS), R&D expenses and sales, general and
administration expenses including corporate allocations as displayed in
the Fiscal 2005 Business Plan, less interest expense.
PLAN SALARY. The actual Incentive Plan Year base salary earnings (gross)
for the senior manager, excluding other bonus payments, Company
contributions to employee benefit plans, and other compensations not
designated as base salary.
ANNUAL INCENTIVE TARGET. The percentage of a senior manager's Plan Salary
awarded if the specified business goals are met.
PERFORMANCE FACTOR. An adjustment (percentage) applied to the Annual
Incentive Target to reflect the actual performance compared with goals.
ANNUAL INCENTIVE PAY AWARDS. Annual Incentive Pay Awards will be
calculated by applying the Performance Factor to the product of the Annual
Incentive Target multiplied by the senior manager's Plan Salary.
ACTIVE EMPLOYMENT STATUS. Presently working, or available for work senior
managers on vacation, sick leave, jury duty, bereavement leave, military
leave, or excused absence. Does not include those who are on short-term
disability due to ill-health or those on unpaid leaves of absence (unless
such leave commenced on or after May 1 of the Plan Year and the senior
manager is expected to return to work within 12 weeks of the commencement
of the leave).
PARTICIPATION
Participation in this plan will include regular full-time Del Global corporate
officers who are on Active Employment Status with the Company as of the last day
of the Plan Year.
Plan Participation is approved by the Stock Option and Compensation Committee of
the Board of Directors. Participation eligibility is re-evaluated each Plan Year
and eligibility in one Plan Year provides no entitlement to eligibility in a
subsequent Plan Year. Similarly, should position scope and/or responsibilities
change during the Plan Year, Plan Participation eligibility may change
accordingly. This will be accompanied by written notification.
Senior managers who terminate employment during the Plan Year due to death,
disability or retirement will be eligible for an Annual Incentive Pay award.
Senior managers who terminate during the Plan Year for any other reason will not
receive an Incentive Pay Award.
Participants must be Officers of Del Global Technologies Corp by May 1 of the
Plan Year to participate in this plan.
Expected individual performance standards must be met to qualify for Annual
Incentive Pay Award, and the Company reserves the right to deny payment to any
individual determined by the Company as having failed to meet such standards.
PERFORMANCE FACTOR CALCULATION FOR ANNUAL INCENTIVE PAY AWARD
When calculating the Incentive Pay against the OPERATING INCOME goal, the
Performance Factor will equal 1.0 when actual performance for the Plan Year is
equal to the Plan Goal. For each % by which performance exceeds the Plan Goal,
the Performance Factor will increase by 2 x that %. For each % by which the
performance is below the Plan Goal, the Performance Factor will decrease by 2 x
that %.
No incentive will be paid if Operating Income is less than 90% of the Plan Goal.
The maximum Factor is 150% at 125% of Plan Goal.
FISCAL 2005 PROGRAM
Your ANNUAL INCENTIVE TARGET for Fiscal 2005 is __ of your Plan Salary.
OPERATING INCOME: 100% of Annual Incentive Target. For Fiscal 2005 the planned
COMPANY OPERATING INCOME is $7,579,263.
PLAN ADMINISTRATION
The Stock Option and Compensation Committee of the Board of Directors will
approve all Senior Management Incentive Plan Awards. Incentive payments will be
paid approximately 120 days after the closing of the Company's financial year.
Payments will be subject to all applicable withholding taxes.
The establishment of this Plan or the granting of Incentive Pay Award payments
shall not constitute any contract with or convey any legal right on any senior
manager against the Company or any representative of the Company. This Plan, or
any element of it, may be changed at any time, with or without notice, on the
instruction of the Stock Option and Compensation Committee of the Board of
Directors.
The Plan and any action taken hereunder are subject to amendment or elimination
at any time and to all US Federal, State or National laws and regulations now in
effect or which may be enacted.
