EXHIBIT 10(g)
WOLVERINE WORLD WIDE, INC.
EXECUTIVE SHORT-TERM INCENTIVE PLAN
FOR 1994
ARTICLE I
ESTABLISHMENT OF THE PLAN
1.1 The Wolverine World Wide, Inc. Executive Short-Term Incentive Plan, as
described herein, is established by Wolverine World Wide, Inc.
(Company) for the fiscal year of 1994, and may be continued, intact or
as amended, from year to year, at the Company's option.
1.2 The Objectives of the Plan are to:
(a) Motivate participants to improve the Company's profitability and
growth by the attainment of carefully planned earnings, sales,
and other contributory goals.
(b) Promote initiative and cooperation with awards based on division
and corporate earnings.
(c) Encourage outstanding individuals to enter and continue in the
employ of the Company.
ARTICLE II
PARTICIPATION
2.1 Participants shall be certain senior division and corporate employees
designated from time to time by the Chief Executive Officer of the
Company and approved by the Compensation Committee of the Board.
2.2 Employees enrolled during the first two periods of the fiscal year are
eligible for all the applicable award for that year. Employees
enrolled during the third through the sixth period are eligible for
one-half of any applicable award. Employees enrolled thereafter shall
not be eligible for any award for that fiscal year.
ARTICLE III
PERFORMANCE GOALS
3.1 The units of measure in the Plan are described below:
(a) Unit Goals (operating divisions or profit centers) are measured
by the attainment of predetermined (1) Profit Before Tax (80-100%
weighting), (2) Annual Sales (0-20% weighting).
Unit (divisional) participants will generally have their bonus
comprised of unit profits of 56%, unit sales of 14%, corporate
goals (profits and sales) of 15%, and personal goals of 15%.
Note: Personal goals will be computed and paid by multiplying
the participants' percentage achievement times 150% of target
payout for the personal goal element. No credit will be given
for achieving personal goals if threshold profit goals are not
attained unless specifically approved by the Compensation
Committee.
(b) Corporate goals are measured by the attainment of predetermined
(1) Corporate-wide Profit Before Tax, Bonus, and 401(k) Plan
(PBTB4), (80% weighting) and (2) Corporate-wide Sales, (20%
weighting) objectives.
Corporate participants will generally have their bonus comprised
of corporate profits 64%, corporate sales 16% and personal goals
20%. Note: Personal goals will be computed and paid by
multiplying the participants' percentage achievement times the
maximum payout for the personal goal element. No credit will be
given for achieving personal goals if threshold profit goals are
not attained unless specifically approved by the Compensation
Committee.
3.2 This plan recognizes three Levels of Goal Attainment for profit and
sales attainment:
(a) Target attainment which qualifies for 100% of eligible bonus.
(b) Threshold attainment which qualifies for 50% of eligible bonus.
(c) Maximum attainment which qualifies for 150% of eligible bonus.
(d) Super Maximum. In addition, achievement above stated maximum
goal attainment will qualify the participant for up to an
additional 50% of target bonus payment (Super-Maximum). This
additional potential incentive will be paid on a pro-rata basis
if profits achieved are between stated maximum and super-maximum
objectives.
Target, Threshold, and Maximum and Super Maximum goals as well as
unit and corporate weightings are approved by the Compensation
Committee. These goals are attached according to your
unit(s)/corporate assignment. Personal goals have also been
communicated to each participant.
3.3 Attainment levels falling between goals (i.e. Threshold Target,
Maximum, and Super Maximum goals) will cause the award level to be
-2-
adjusted by the use straight-line interpolation between the
appropriate levels.
3.4 Each individual eligible for this Plan has been assigned a target
bonus percentage. These targets are determined based on
responsibility and/or performance levels and approved by the
Compensation Committee.
3.5 A participant's actual bonus for 1994 is determined by applying the
Target Bonus to the Level of Goal Attainment for the unit(s) and/or
corporate to which the participant has been assigned for purposes of
this Plan.
3.6 Each Plan participant has been assigned to one or more units and/or
corporate. This assignment is expressed as a percentage (0-100%) and
is based on the participant's position and responsibility in the
Company. Thus, a participant's final bonus calculation will be the
sum of each assigned unit/corporate achievement multiplied by his/her
assigned percentage in that unit(s) and/or corporate.
3.7 The formula therefore for calculating an individual's bonus is as
follows: Bonus equals base salary paid in 1994 multiplied by the
eligible Target Bonus multiplied by the Level of Goal Attainment
against target goals by the unit(s)/corporate area to which a
participant is assigned.
Bonus = Salary X Eligible Target % X Weighted Level of Goal
Attainment.
3.8 Plan Participants will have this Plan and their individual goals,
assignments, and factors explained to them. Information will be
provided quarterly showing estimated progress toward the established
goals.
ARTICLE IV
GENERAL PROVISIONS
4.1 Payout of Awards.
Bonuses earned under the Plan will be paid as soon as is practicable
after the completion of the audit of the Company's books for the
fiscal year and approval of the awards by the Compensation Committee
of the Board of Directors.
4.2 Eligibility for Payment.
Only those employees actively at work on the last day of the fiscal
year shall be eligible for any bonus earned that year. In addition,
the Compensation Committee of the Board may, at its discretion,
interpret or modify this Plan and make other awards if a termination
-3-
is due to disability, retirement or death prior to the end of the
year.
4.3 Employment Rights.
The Plan shall not be construed to give and does not give any employee
the right to be continued in the employ of the Company.
ARTICLE V
SUPPLEMENTAL PROVISIONS
5.1 Maximum Bonus.
There will be no limitation on the total maximum bonuses as long as
the payment of bonuses and dividends is not greater than corporate
PBTB4. If, however, corporate earnings were below the Threshold goal,
then bonuses in those units attaining Target goal or greater would not
be reduced below Target Bonus nor would bonuses in units earning
between Threshold and Target goals be reduced below Threshold Bonuses.
5.2 Compensation Committee Discretion.
Notwithstanding the above, the Compensation Committee of the Board
reserves the right to reduce the formula bonus of any participant
deemed not to have performed satisfactorily in his or her
position/assignment during the year.
Likewise the Compensation Committee may increase a formula bonus if
there is compelling reason to do so.
-4-