1
Exhibit 10.18
BOISE CASCADE OFFICE PRODUCTS CORPORATION
KEY EXECUTIVE PERFORMANCE PLAN
1998 Payout Criteria
--------------------
PAYOUT AS A PERCENT OF SALARY
Financial
Improvement CEO SVP VP
----------- --- --- --
($61,215,000) 0.0% 0.0% 0.0%
($35,000,000) 15.0% 11.2% 8.7%
($1,448,000) 72.5% 54.4% 42.3%
($1,447,999) 102.5% 76.9% 59.8%
$0 105.0% 78.7% 61.2%
$35,000,000 125.0% 93.7% 72.9%
o For Financial Improvement in excess of $35 million, the payout increases
proportionally to the increase from $0 million to $35 million.
o The payout is interpolated on a straight line for Financial Improvement
not shown in the table.
o Financial Improvement is measured by calculating the company's economic
value added.
Economic Value Added = Net Operating Profit Before Tax - Capital Charge
Net Operating Profit
Before Tax (NOPBT)* = Income from operating assets
+ Imputed interest of capitalized lease obligations
- Amortization of restructuring losses
* Unusual nonrecurring and nonoperating income or expense items do not
affect NOPBT
Capital Charge = Capital x 16%
Capital** = Operating Capital
+ Imputed capital value of lease obligations
- Gain from the sale of assets
+ Unamortized restructuring losses
** Nonrecurring and nonoperating losses do not affect Operating Capital.
There may be adjustments to Operating Capital for strategic investments
while they are under construction and up to two additional years subject
to approval by the Compensation Committee of the Board.
2
BOISE CASCADE OFFICE PRODUCTS CORPORATION
KEY EXECUTIVE PERFORMANCE PLAN
1999 Payout Criteria
--------------------
PAYOUT AS A PERCENT OF SALARY
Financial
Improvement CEO SVP VP
----------- --- --- --
($57,988,000) 0.0% 0.0% 0.0%
($23,037,000) 13.4% 10.0% 7.8%
$11,963,000 73.4% 55.0% 42.8%
$11,963,001 101.1% 75.8% 59.0%
$46,963,000 121.1% 90.8% 70.6%
o For Financial Improvement in excess of $47 million, the payout increases
proportionally to the increase from $12 million to $47 million.
o The payout is interpolated on a straight line for Financial Improvement not
shown in the table.
o Financial Improvement is measured by calculating the company's economic
value added.
Economic Value Added = Net Operating Profit Before Tax - Capital Charge
Net Operating Profit
Before Tax (NOPBT)* = Income from operating assets
+ Imputed interest of capitalized lease obligations
- Amortization of restructuring losses
* Unusual nonrecurring and nonoperating income or expense items do not affect
NOPBT
Capital Charge = Capital x 16%
Capital** = Operating Capital
+ Imputed capital value of lease obligations
- Gain from the sale of assets
+ Unamortized restructuring losses
** Nonrecurring and nonoperating losses do not affect Operating Capital.
There may be adjustments to Operating Capital for strategic investments
while they are under construction and up to two additional years subject
to approval by the Compensation Committee of the Board.