EXHIBIT 10.22
1997 BRUNSWICK PERFORMANCE PLAN
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PURPOSE: To motivate and reward Senior Executives and other management
employees of the Company for the achievement of specified
annual financial goals and the enhancement of management talent
in the organization.
ELIGIBILITY: Approximately top 400 managers in the Company.
MAXIMUM
AWARD: Maximum awards under the Plan range from 30% to 100% of a
participant's base salary at the beginning of the performance
period depending upon the participant's level of
responsibility.
PERFORMANCE
MEASURES: Established annually by the CEO. Measures and weightings may be
modified year to year. Weightings for 1997 are as follows:
Groups
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. 60% Division Contribution
. 20% Working Capital Turnover
. 20% People/Organizational Enhancement
Division Contribution is defined as operating earnings plus
other income and expense.
Working Capital Turnover is defined as:
1997 Net Sales
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1997 Avg. Receivable + Avg. Inventory - Avg. Payables
The average is to be compiled using a 5 quarter average
consisting of 1996 year-end actual and each of the quarters in
1997.
Corporate
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. 80% Earnings per share (EPS)
. 20% People/Organizational Enhancement
RELATIONSHIP
OF PERFORMANCE
TO PAYOUT: Performance Level Payout Level
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100% 100%
90% 70%
80% 50%
70% 40%
1997 BRUNSWICK PERFORMANCE PLAN (cont'd)
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PERFORMANCE
TO PAYOUT (cont'd) Bonuses would not be paid for performance below the 80%
level which was less than the prior year's actual reported
results, unless part of a budgeted/Board approved target.
Performance levels have been established by the CEO and may
not be linear relationships to the targets. The payout for
performance between levels will be prorated.
PAYOUT FORM: Payment will be in cash for all participants except those
whose maximum award is 100% of base salary. Payment for this
group of participants will be 50% cash and 50% stock
(deferrable) until mandated stock ownership levels are
achieved; thereafter the mix of cash and stock will be at
the participant's election.
PAYMENT: Bonus payments will be made after the year-end financial
results have been reviewed and certified by Arthur Andersen
& Co. Proposed bonus payments to Senior Executives will be
reviewed and approved by the Compensation Committee.
WITHHOLDING: Participants receiving a portion of their bonus payment in
stock may elect to pay Federal, state and local withholding
tax obligations to the Company in cash or request that the
Company withhold a number of shares of common stock equal in
value to the withholding tax amount, at the discretion of
the Committee.