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EXHIBIT 10(b)
ONEIDA SILVERSMITHS DIVISION
EMPLOYEE INCENTIVE PROGRAM
FISCAL 1988 RECOMMENDATION
The following two plans form the fiscal 1988 Employee Incentive Program
for the Oneida Silversmiths Division:
PROFIT SHARING PLAN
- All eligible employees of Oneida Silversmiths will participate,
excluding salesmen, regional sales managers and those employees in the
management incentive plan. (Eligibility chart attached).
- No contribution will be made to the plan if Silversmiths operating
income is under $8,000,000. Above $8,000,000, the contribution to the plan
will be $400,000 plus 10% of all operating income over $8,000,000.
- The monies in the plan will be allocated based upon W-2 earnings.
- To provide additional financial recognition to exempt employees, an
additional 11% of the initial contribution to the plan will be allocated to
salary employees, excluding those on the management incentive plan. Allocation
will be based upon W-2 earnings. (W-2 earnings include 401(K) contributions and
exclude imputed income.).
MANAGEMENT INCENTIVE PLAN
- Approximately 45 key managers from Oneida Silversmiths will participate
in the management incentive plan.
- The amount of the payout is dependent upon the manager's grade as
follows:
Grade Target Amount
30 $30,000
29 30,000
28 20,000
26 20,000
25 20,000
24 15,000
23 15,000
22 10,000
21 10,000
20 10,000
19 6,000
18 6,000
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- The plan target is:
Measure Weighting FY 1988 Goal
Operating Income 100% $15,800,000
- A minimum of 50% of the target amount is paid if 50% of the goal is
achieved. A maximum of 150% of the target amount is paid if 150% of the goal is
achieved. Points in between are determined arithmetically.
- Division management, with the approval of the Corporate CEO and COO, has
the discretion to increase or decrease a participant's final payout based upon
personal performance.
For BOTH plans:
- The calculation of the Operating Income targets does not include the
cost of either the Profit Sharing Plan or the Management Incentive Plan.
- The Corporate CEO and COO have the authority to adjust the calculation
of Operating Income in recognition of extraordinary or non-recurring events, or
because of changes in methods of accounting during the fiscal year.
- If actual results for FYE January 1989 equal the targets, the total
cost of both plans will be approximately $2,000,000.
- The bonus will be paid in March, and participants must be on the active
payroll on the last day of the Fiscal Year in order to receive payment. In the
event of illness, death, retirement or "slack work layoff" during the fiscal
year, a bonus will be paid on a pro-rata basis based on W-2 earnings for that
year.
PROFIT-SHARING ELIGIBILITY
QUALIFICATIONS: REQUIRE 1000 HRS MUST BE ON ACTIVE
AT WORK. PAYROLL 1ST DAY OF FY
____________________________________________________________________
Active Employee: YES YES
- - --------------------------------------------------------------
Retiree: NO NO
- - --------------------------------------------------------------
Active Employee dies during FY:
NO NO
- - --------------------------------------------------------------
Active Employee disabled during FY and dies before end of FY:
NO NO
- - --------------------------------------------------------------
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Active Employee on short-term disability (less than 6 mo.)
Hourly: YES NO
Salary: YES, but* NO
*salary continuation counts as time worked
- - --------------------------------------------------------------
Active Employee goes to LTD during FY:
Hourly: YES NO
Salary: YES* NO
*if salary continuation + time worked = 6 months
- - --------------------------------------------------------------
Disabled all year: YES YES
- - --------------------------------------------------------------
Workers' Comp: NO NO
- - --------------------------------------------------------------
Slack work layoff, not recalled:
YES NO
- - --------------------------------------------------------------
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ONEIDA CORPORATE
MANAGEMENT INCENTIVE PROGRAM
FISCAL 1988 RECOMMENDATION
The following plan forms the Fiscal 1988 Management Incentive Program or
Oneida Corporate:
MANAGEMENT INCENTIVE PLAN
- The CEO and COO plus approximately 8 key managers from Corporate will
participate.
- The amount of the payout is dependent upon the manager's grade as
follows:
Grade Target Amount
35 $90,000 *(See Appendix A)
33 66,000 *(See Appendix A)
30 30,000
29 30,000
28 20,000
26 20,000
25 20,000
24 15,000
23 15,000
22 10,000
21 10,000
20 10,000
19 6,000
l8 6,000
- The plan targets are as follows:
Measures Weighting FY 1988 Goal
Income before Taxes 60% $16,700,000
Return on Equity 40% 12.0%
- A minimum of 50% of the target amount is paid if 50% of the goal is
achieved. A maximum of 150% of the target amount is paid if 150 of the goal is
achieved. Points in between are determined arithmetically.
- The CEO and COO have the discretion to increase or decrease a
participant's final payout based upon personal performance.
- The calculation of the Income Before Tax target does not include the
cost of the plan.
- The CEO and COO will adjust the calculation of Income Before Tax in
recognition of extraordinary or non-recurring events, or because of changes in
methods of accounting during the fiscal year.
- If actual results for FYE January 1989 equal the targets, the total
cost of the plan will be approximately $246,000.
- The bonus will be paid in March, and participants must be on the active
payroll on the last day of the Fiscal Year in order to receive payment. In the
event of illness, death or retirement during the fiscal year, a bonus will be
paid on a pro-rata basis based on W-2 earnings for that year.