EXHIBIT 10(f)
Personnel Policy
Incentive Bonus Program
A. Policy
1. The philosophy of the company's compensation program is "Pay for
Performance". The purpose of our Incentive Bonus Program is to provide
compensation in addition to and separate from base salary for members of
management, in relation to this overall objective. The bonus program is
based on profit-center results and the employee's individual
contribution.
2. Our Company can meet profit objectives only if our managers
fulfill the responsibilities of planning, goal setting, measurement of
results, thorough follow-up, and an abundance of hard work. These
activities must be accomplished with bottom-line result in perspective.
This will ensure that our customers, stockholders, and employees share
in the success of the Company.
3. The Management Bonus Program is divided into two portions as
follows:
a. The Profit Center Performance Plan provides financial
rewards to managers in pro-rata amount based on (a) the attainment
of pre-set profit objectives, which identify the profit level at
which bonus payment begins and the level necessary for maximum
bonus payments; and (b) the maximum bonus level for each job
grade.
b. The Discretionary Award Plan is based on the attainment of
pre-set profit objectives as in (a) above, and individual
achievement.
B. Procedure
1. The principles upon which the bonus plan profit objectives are
established are as follows:
a. Two profit objectives for each Profit Center are selected
within the Company. These are:
1. The profit level at which bonuses begin. (Bonus Base
or Minimum Profit)
2. The profit level at which maximum bonuses will be
paid. (Bonus Maximum)
The profit levels defined are Net Before Income Taxes but after
provision for bonuses earned.
b. Theses profit objectives are set at the beginning of each
fiscal year, and will be based upon return on investment
objectives.
c. Bonus Profit objectives are set independently of the
Budget process, with final approval by the Chairman of Oxford
Industries.
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d. The Chairman of Oxford Industries will determine
participation for managers serving more than one operational area
of the company.
2. Management Incentive Bonus payment is based on the following
criteria:
a. Bonus payment under the Profit Center performance plan is in
relation to the maximum bonus potential level assigned to each
job grade as well as the pre-set profit goals.
b. The reward under the Discretionary Award Plan, is based on
attainment of pre-set objectives (and other conditions outlined
in this policy). Based on individual performance, the discretionary
award may be up to 100% of the guaranteed award. If a profit center
earns no guaranteed award bonus, there will be no discretionary bonus.
c. Employees who begin participation during the fiscal year
will receive a pro-rata bonus for the period during which they
have participated, calculated to the nearest month. An employee
beginning work by the 15th of any month will be eligible for
bonus proration including that month; employees not beginning
until the 16th will not be eligible for proration until the next
month. Pro-rata participation does not apply to employees
leaving the company (see paragraph 3f).
3. Additional factors related to the Management Incentive Program are
as follows:
a. Bonuses for employees included in the Program who change job
grades, or transfer between Profit Centers during a fiscal
year will be prorated to the nearest month, as noted in 2c
above.
b. Provided that the profit performance of a Profit Center has
reached the level necessary for bonuses to be earned on a
cumulative basis at the end of a fiscal year, participating
members of Management in that Profit Center will receive
their bonuses, irrespective of the performance of other
Profit Centers in the Company, or of the Company as a whole.
c. Newly acquired companies or additions to a Profit Center may
be excluded from consideration in setting Profit objectives
for bonus proposes until they have been absorbed into our
organization, at the discretion of the Chairman of Oxford
Industries.
d. Profit Center Bonus projections will be calculated and
reported to all participants not less than quarterly.
e. Employees do not accrue bonus for periods of unpaid leave of
absence. However, employees on leave of absence as of the
end of the fiscal year will be eligible for pro-rata bonus
payment for periods of paid leave.
f. Bonuses will be paid in full in August of each year
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following the end of the fiscal year to participating
members of management who were employed before May 15th of
the same fiscal year and who remain employed on the earlier
of, the last day of the fiscal year, or the last day of May,
provided the right to such bonus has not been forfeited as
provided for in Sections g and h below. Any exception to
this will be subject to the approval of the Chairman of
Oxford Industries.
g. Prior to distribution of bonus checks, if an employee
entitled to receive a bonus is found guilty of committing
acts which are detrimental to the best interests of the
Company (such as misconduct) he will automatically forfeit
all rights to receive his bonus.
h. Any employee leaving the Company prior to fiscal year end,
will forfeit eligibility for bonus participation. An
exception would be an employee otherwise eligible for bonus
who retires or dies during the same bonus year. (An
employee is considered retired if he leaves the Company with
the length of service and age that is required for 100%
vesting eligibility under the terms of any of Oxford's
qualified Retirement Plans regardless of whether or not the
employee is participating in any of those plans.) A
prorated bonus payment would be issued in relation to months
worked before retirement or death.
i. The Bonus Program will be reviewed each year, and will be
subject to change as necessary or desirable to ensure that
it remains equitable and effective as incentive compensation
for improved results.
c. Exceptions
Exceptions to this policy may be made only with the prior approval of the
Chairman of Oxford Industries, Inc.
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