1
Exhibit 10(c)
-------------
The Scotts Company 1999 Executive and
Management Incentive Plan
2
[SCOTTS LOGO]
1999 SCOTTS EXECUTIVE AND MANAGEMENT
INCENTIVE PLAN
CORPORATE PARTICIPANTS
10/26/1999 PROPRIETARY AND CONFIDENTIAL
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[SCOTTS LOGO]
1999 SCOTTS EXECUTIVE AND MANAGEMENT
INCENTIVE PLAN
BUSINESS GROUP PARTICIPANTS
EXECUTIVE LEVEL
10/26/1999 PROPRIETARY AND CONFIDENTIAL
4
[SCOTTS LOGO]
1999 SCOTTS EXECUTIVE AND MANAGEMENT
INCENTIVE PLAN
BUSINESS GROUP PARTICIPANTS
MANAGEMENT LEVEL
10/26/1999 PROPRIETARY AND CONFIDENTIAL
5
[SCOTTS LOGO]
1999 SCOTTS EXECUTIVE AND MANAGEMENT
INCENTIVE PLAN
OPERATIONS PARTICIPANTS
10/26/1999 PROPRIETARY AND CONFIDENTIAL
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GENERAL PLAN PROVISIONS
OBJECTIVE: To provide a strong financial incentive that is consistent with and
supportive of business strategy and to encourage a team effort towards the
achievement of corporate goals.
TARGET AWARDS: Each participant will be assigned a 1999 "Bonus Target Percent of
Salary."
RESTRICTIONS: Participants must be actively employed in an eligible position for
at least 13 consecutive weeks during the plan year. Payouts will be prorated if
employment in an eligible position is for less than the entire plan year.
Participants must be employed on the last day of the fiscal year to be eligible
for a payout. Participants who terminate their employment during the plan year,
except in cases of retirement, will not be eligible for an incentive payment,
prorated or otherwise.
Plan eligibility and payout calculation will not be impacted for associates on
short term disability at any time during the plan year. However, if an associate
is on long term disability, the payout will be prorated to compensate only for
periods of active employment or short term disability.
The Plan confers no rights upon any associate to participate in the Plan or
remain in the employ of the Company. Neither the adoption of the Plan nor its
operation shall in any way affect the right of the associate or the Company to
terminate the employment relationship at any time.
The Company reserves the right to suspend the Plan, to withdraw the Plan, and to
make substantial alterations in Plan concept.
10/26/1999 PROPRIETARY AND CONFIDENTIAL
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CORPORATE PARTICIPANTS
Note: Some participants may have a customized incentive plan design. Please
refer to your personalized communication for your plan specifics.
MEASUREMENTS:
- - ---------------------------------------------------------------------------------------------
PARTICIPANTS CORPORATE MAJOR GOAL
EARNINGS ATTAINMENT
PER SHARE
("E.P.S.")
- - ---------------------------------------------------------------------------------------------
Corporate Participants 80% 20%
- - ---------------------------------------------------------------------------------------------
EARNED AWARDS:
CORPORATE EARNINGS PER SHARE: As reported in public financial statements.
- - ---------------------------------------------------------------------------------------------
CORPORATE PERFORMANCE EARNINGS PER INCENTIVE PAYOUT
SHARE AWARD PERCENTAGE
- - ---------------------------------------------------------------------------------------------
Minimum 80% - $1.52 25%
- - ---------------------------------------------------------------------------------------------
Target 100% - $1.90 100%
- - ---------------------------------------------------------------------------------------------
Maximum 120% - $2.28 250%
- - ---------------------------------------------------------------------------------------------
Results between performance levels will be incrementally calculated so
participants will receive a prorated payout (calculated on a straight-line
basis, rounded to the nearest percentile).
For results below the "Minimum": No incentive payout will be made.
For results between "Minimum" and "Target": For each $.01 increase in E.P.S.
above the "Minimum", the award percentage increases by 1.97%.
For results between "Target" and "Maximum": For each $.01 increase in E.P.S.
above the "Target", the award percentage increases by 3.95%.
For results above the "Maximum": An incentive payout of 250% will be calculated.
MAJOR GOAL ATTAINMENT: Based on the performance and achievement of specific
quantifiable goals within the participant's area of responsibility, as
established and measured by the CEO and/or the participant's manager.
- - -------------------------------------------------------------------------------------------
PERSONAL PERFORMANCE GOAL ATTAINMENT INCENTIVE PAYOUT
LEVELS AWARD PERCENTAGE
- - -------------------------------------------------------------------------------------------
Minimum Did not achieve goals 0%
- - -------------------------------------------------------------------------------------------
Target Achieved goals on 100%
average
- - -------------------------------------------------------------------------------------------
Maximum Exceeded goals on 200%
average
- - -------------------------------------------------------------------------------------------
10/26/1999 PROPRIETARY AND CONFIDENTIAL
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Results between performance levels will be rewarded on a payout percentage
determined by the CEO and/or the participant's manager (with CEO approval).
SAMPLE CALCULATION:
Salary: $80,000
1999 Target Percentage: 20%
SAMPLE RESULTS:
Earnings Per Share: $2.00
Major Goal Attainment: Accomplished all major goals satisfactorily.
CALCULATION:
Determining the Corporate Earnings Per Share Award Percentage:
- - --------------------------------------------------------------
Corporate EPS = ((Actual EPS - Target EPS) x Incremental Payout Percentage) + 100%
Award % = (($2.00 - $1.90) x 3.95%) + 100%
= 139.5%
Determining the Incentive Payout:
- - ---------------------------------
1999 Target x 80% x Corporate Earnings Per Share Award Percentage
20% x 80% x 139.5% = 22.32%
+
1999 Target x 20% x Major Goal Attainment Award Percentage
20% x 20% x 100% = 4.0%
=Award of 26.32% of pay
FINAL PAYOUT = $80,000 X 26.32% = $21,056
=======
10/26/1999 PROPRIETARY AND CONFIDENTIAL
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BUSINESS GROUP PARTICIPANTS
EXECUTIVE LEVEL
(EXECUTIVES AND THEIR DIRECT REPORTS)
Note: Some participants may have a customized incentive plan design. Please
refer to your personalized communication for your plan specifics.
MEASUREMENTS
- - ------------------------------------------------------------------------------------------
PARTICIPANTS BUSINESS GROUP CORPORATE MAJOR GOAL
ADJUSTED EARNINGS ATTAINMENT
CONTRIBUTION PER SHARE
MARGIN ("E.P.S.")
("A.C.M.")
- - ------------------------------------------------------------------------------------------
Business Group 50% 30% 20%
Participant
- - ------------------------------------------------------------------------------------------
EARNED AWARDS:
BUSINESS GROUP A.C.M.: Defined by the attached schedule.
- - ------------------------------------------------------------------------------------------
GROUP PERFORMANCE BUSINESS GROUP INCENTIVE PAYOUT
LEVELS A.C.M. AWARD PERCENTAGE
PERFORMANCE
PERCENTAGE
- - ------------------------------------------------------------------------------------------
Minimum 80% 25%
- - ------------------------------------------------------------------------------------------
Target 100% 100%
- - ------------------------------------------------------------------------------------------
Maximum 120% 250%
- - ------------------------------------------------------------------------------------------
Results between performance levels will be incrementally calculated so
participants will receive a prorated payout (calculated on a straight-line
basis, rounded to the nearest percentile).
For results below the "Minimum": No incentive payout will be made.
For results between "Minimum" and "Target": For each 1.0% increase in
performance percentage above the "Minimum", the award percentage increases by
3.75%.
For results between "Target" and "Maximum": For each 1.0% increase in
performance percentage above the "Target", the award percentage increases by
7.5%.
For results above the "Maximum": An incentive payout of 250% will be calculated.
CORPORATE EARNINGS PER SHARE: As reported in public financial statements.
- - ---------------------------------------------------------------------------------------------
CORPORATE PERFORMANCE EARNINGS PER INCENTIVE PAYOUT
SHARE AWARD PERCENTAGE
- - ---------------------------------------------------------------------------------------------
Minimum 80% - $1.52 25%
- - ---------------------------------------------------------------------------------------------
Target 100% - $1.90 100%
- - ---------------------------------------------------------------------------------------------
Maximum 120% - $2.28 250%
- - ---------------------------------------------------------------------------------------------
10/26/1999 PROPRIETARY AND CONFIDENTIAL
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Results between performance levels will be incrementally calculated so
participants will receive a prorated payout (calculated on a straight-line
basis, rounded to the nearest percentile).
For results below the "Minimum": No incentive payout will be made.
For results between "Minimum" and "Target": For each $.01 increase in E.P.S.
above the "Minimum", the award percentage increases by 1.97%.
For results between "Target" and "Maximum": For each $.01 increase in E.P.S.
above the "Target", the award percentage increases by 3.95%.
For results above the "Maximum": An incentive payout of 250% will be calculated.
MAJOR GOAL ATTAINMENT: Based on the performance and achievement of specific
quantifiable goals within the participant's area of responsibility, as
established and measured by the CEO, President and/or the participant's manager.
- - -------------------------------------------------------------------------------------------
PERSONAL PERFORMANCE GOAL ATTAINMENT INCENTIVE PAYOUT
LEVELS AWARD PERCENTAGE
- - -------------------------------------------------------------------------------------------
Minimum Did not achieve goals 0%
- - -------------------------------------------------------------------------------------------
Target Achieved goals on 100%
average
- - -------------------------------------------------------------------------------------------
Maximum Exceeded goals on 200%
average
- - -------------------------------------------------------------------------------------------
Results between performance levels will be rewarded on a payout percentage
determined by the CEO and/or the participant's manager (with CEO approval).
10/26/1999 PROPRIETARY AND CONFIDENTIAL
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SAMPLE CALCULATION:
Salary: $80,000
1999 Target Percentage: 20%
SAMPLE RESULTS:
Business Group A.C.M.:
Actual $21,000,000
Budget $20,000,000
Earnings Per Share: $2.00
Major Goal Attainment: Accomplished all major goals satisfactorily on average.
CALCULATION:
Determining the Business Group A.C.M. Award Percentage
- - ------------------------------------------------------
Business Group A.C.M. = $21,000,000 = 105%
-----------
Performance Percentage $20,000,000
Business Group A.C.M. = (Incremental Performance % above "target"x 7.5%) + 100%
Award Percentage = (5 x 7.5%) + 100%
= 137.5%
Determining the Corporate Earnings Per Share Award Percentage:
- - --------------------------------------------------------------
Corporate EPS = (Actual EPS - Target EPS) x Incremental Payout Percentage
Award Percentage = ($2.00 - $1.90) x 3.95%
= 139.5%
Determining the Incentive Payout:
- - ---------------------------------
1999 Target x 50% x Business Group A.C.M. Award Percentage
20% x 50% x 137.5% = 13.75%
+
1999 Target x 30% x Corporate Earnings Per Share Award Percentage
20% x 30% x 139.5% = 8.37%
+
1999 Target x 20% x Major Goal Attainment Award Percentage
20% x 20% x 100% = 4.0%
=Award of 26.12% of pay
FINAL PAYOUT = $80,000 X 26.12% = $20,896
=======
10/26/1999 PROPRIETARY AND CONFIDENTIAL
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BUSINESS GROUP PARTICIPANTS
MANAGEMENT LEVEL
Note: Some participants may have a customized incentive plan design. Please
refer to your personalized communication for your plan specifics.
MEASUREMENTS:
- - -------------------------------------------------------------------------------------------
BUSINESS GROUP BUSINESS GROUP MAJOR GOAL
PARTICIPANT ADJUSTED ATTAINMENT
CONTRIBUTION
MARGIN ("A.C.M.")
- - -------------------------------------------------------------------------------------------
Business Group 80% 20%
Participant
- - -------------------------------------------------------------------------------------------
EARNED AWARDS:
BUSINESS GROUP A.C.M.: Defined by the attached schedule.
- - ------------------------------------------------------------------------------------------
GROUP PERFORMANCE BUSINESS GROUP INCENTIVE PAYOUT
LEVELS A.C.M. AWARD PERCENTAGE
PERFORMANCE
PERCENTAGE
- - ------------------------------------------------------------------------------------------
Minimum 80% 25%
- - ------------------------------------------------------------------------------------------
Target 100% 100%
- - ------------------------------------------------------------------------------------------
Maximum 120% 250%
- - ------------------------------------------------------------------------------------------
Results between performance levels will be incrementally calculated so
participants will receive a prorated payout (calculated on a straight-line
basis, rounded to the nearest percentile).
For results below the "Minimum": No incentive payout will be made.
For results between "Minimum" and "Target": For each 1.0% increase in
performance percentage above the "Minimum", the award percentage increases by
3.75%.
For results between "Target" and "Maximum": For each 1.0% increase in
performance percentage above the "Target", the award percentage increases by
7.5%.
For results above the "Maximum": An incentive payout of 250% will be calculated.
MAJOR GOAL ATTAINMENT: Based on the performance and achievement of specific
quantifiable goals within the participant's area of responsibility, as
established and measured by the CEO, President and/or the participant's manager.
- - -------------------------------------------------------------------------------------------
PERSONAL PERFORMANCE GOAL ATTAINMENT INCENTIVE PAYOUT
LEVELS AWARD PERCENTAGE
- - -------------------------------------------------------------------------------------------
Minimum Did not achieve goals 0%
- - -------------------------------------------------------------------------------------------
Target Achieved goals on 100%
average
- - -------------------------------------------------------------------------------------------
Maximum Exceeded goals on 200%
average
- - -------------------------------------------------------------------------------------------
10/26/1999 PROPRIETARY AND CONFIDENTIAL
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Results between performance levels will be rewarded on a payout percentage
determined by the CEO and/or the participant's manager (with CEO approval).
SAMPLE CALCULATION:
Salary: $80,000
1999 Target Percentage: 20%
SAMPLE RESULTS:
Business Group A.C.M.:
Actual $21,000,000
Budget $20,000,000
Major Goal Attainment: Accomplished all major goals satisfactorily on average.
CALCULATION:
Determining the Business Group A.C.M. Award Percentage
- - ------------------------------------------------------
Business Group A.C.M. = $21,000,000 = 105%
-----------
Performance Percentage $20,000,000
Business Group A.C.M. = (Incremental Performance % above "target" x 7.5%) + 100%
Award Percentage = (5 x 7.5%) + 100%
= 137.5%
Determining the Incentive Payout:
- - ---------------------------------
1999 Target x 80% x Business Group A.C.M. Award Percentage
20% x 80% x 137.5% = 22.0%
+
1999 Target x 20% x Major Goal Attainment Award Percentage
20% x 20% x 100% = 4.0%
=Award of 26.0% of pay
FINAL PAYOUT = $80,000 X 26.0% = $20,800
=======
10/26/1999 PROPRIETARY AND CONFIDENTIAL
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OPERATIONS PARTICIPANTS
MEASUREMENTS
- - ----------------------------------------------------------------------------------------------
BUSINESS MAJOR INDIVIDUAL BUSINESS CORPORATE MAJOR GOAL
GROUP AREA OF AREA OF GROUP(S) EARNINGS ATTAINMENT
RESPONSIBILITY RESPONSIBILITY ADJUSTED PER SHARE
("M.A.O.R") ("I.A.O.R.") CONTRIBUTION
MARGIN
- - ----------------------------------------------------------------------------------------------
Operations Range: Range: Range: Range: 20%
0% - 60% 0% - 35% 0% - 20% 0% - 30%
- - ----------------------------------------------------------------------------------------------
EARNED AWARDS
MAJOR AREA OF RESPONSIBILITY: Defined according to the participant.
- - ---------------------------------------------------------------------------------------------
M.A.O.R. AREA OF RESPONSIBILITY INCENTIVE PAYOUT
PERFORMANCE MEASURE(S) AWARD PERCENTAGE
LEVELS
- - ---------------------------------------------------------------------------------------------
Minimum Defined according to the 25%
M.A.O.R.
- - ---------------------------------------------------------------------------------------------
Target Budget 100%
- - ---------------------------------------------------------------------------------------------
Maximum Defined according to the 250%
M.A.O.R.
- - ---------------------------------------------------------------------------------------------
Results between performance levels will be incrementally calculated so
participants will receive a prorated payout (calculated on a straight-line
basis, rounded to the nearest percentile).
For results below the "Minimum": No incentive payout will be made.
For results above the "Maximum": An incentive payout of 250% will be calculated.
INDIVIDUAL AREA OF RESPONSIBILITY: Defined according to the participant.
- - ---------------------------------------------------------------------------------------------
I.A.O.R. AREA OF RESPONSIBILITY INCENTIVE PAYOUT
PERFORMANCE MEASURE(S) AWARD PERCENTAGE
LEVELS
- - ---------------------------------------------------------------------------------------------
Minimum Defined according to the 25%
I.A.O.R.
- - ---------------------------------------------------------------------------------------------
Target Budget 100%
- - ---------------------------------------------------------------------------------------------
Maximum Defined according to the 250%
I.A.O.R.
- - ---------------------------------------------------------------------------------------------
Results between performance levels will be incrementally calculated so
participants will receive a prorated payout (calculated on a straight-line
basis, rounded to the nearest percentile).
For results below the "Minimum": No incentive payout will be made.
For results above the "Maximum": An incentive payout of 250% will be calculated.
BUSINESS GROUP(S) A.C.M.: Defined by the attached schedule.
10/26/1999 PROPRIETARY AND CONFIDENTIAL
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- - ------------------------------------------------------------------------------------------
GROUP PERFORMANCE BUSINESS GROUP INCENTIVE PAYOUT
LEVELS A.C.M. AWARD PERCENTAGE
PERFORMANCE
PERCENTAGE
- - ------------------------------------------------------------------------------------------
Minimum 80% 25%
- - ------------------------------------------------------------------------------------------
Target 100% 100%
- - ------------------------------------------------------------------------------------------
Maximum 120% 250%
- - ------------------------------------------------------------------------------------------
Results between performance levels will be incrementally calculated so
participants will receive a prorated payout (calculated on a straight-line
basis, rounded to the nearest percentile).
For results below the "Minimum": No incentive payout will be made.
For results between "Minimum" and "Target": For each 1.0% increase in
performance percentage above the "Minimum", the award percentage increases by
3.75%.
For results between "Target" and "Maximum": For each 1.0% increase in
performance percentage above the "Target", the award percentage increases by
7.5%.
For results above the "Maximum": An incentive payout of 250% will be calculated.
CORPORATE EARNINGS PER SHARE: As reported in public financial statements.
- - ---------------------------------------------------------------------------------------------
CORPORATE PERFORMANCE EARNINGS PER INCENTIVE PAYOUT
SHARE AWARD PERCENTAGE
- - ---------------------------------------------------------------------------------------------
Minimum 80% - $1.52 25%
- - ---------------------------------------------------------------------------------------------
Target 100% - $1.90 100%
- - ---------------------------------------------------------------------------------------------
Maximum 120% - $2.28 250%
- - ---------------------------------------------------------------------------------------------
Results between performance levels will be incrementally calculated so
participants will receive a prorated payout (calculated on a straight-line
basis, rounded to the nearest percentile).
For results below the "Minimum": No incentive payout will be made.
For results between "Minimum" and "Target": For each $.01 increase in E.P.S.
above the "Minimum", the award percentage increases by 1.97%.
For results between "Target" and "Maximum": For each $.01 increase in E.P.S.
above the "Target", the award percentage increases by 3.95%.
For results above the "Maximum": An incentive payout of 250% will be calculated.
10/26/1999 PROPRIETARY AND CONFIDENTIAL
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MAJOR GOAL ATTAINMENT: Based on the performance and achievement of specific
quantifiable goals within the participant's area of responsibility, as
established and measured by the CEO, President and/or the participant's manager.
- - -------------------------------------------------------------------------------------------
PERSONAL PERFORMANCE GOAL ATTAINMENT INCENTIVE PAYOUT
LEVELS
- - -------------------------------------------------------------------------------------------
Minimum Did not achieve goals 0%
- - -------------------------------------------------------------------------------------------
Target Achieved goals on 100%
average
- - -------------------------------------------------------------------------------------------
Maximum Exceeded goals on 200%
average
- - -------------------------------------------------------------------------------------------
Results between performance levels will be rewarded on a payout percentage
determined by the CEO and/or the participant's manager (with CEO approval).
10/26/1999 PROPRIETARY AND CONFIDENTIAL
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SAMPLE CALCULATION:
Salary: $80,000
1999 Target Percentage: 20%
SAMPLE INCENTIVE MEASUREMENTS:
- - -----------------------------------------------------------------------------------------------
BUSINESS MAJOR INDIVIDUAL BUSINESS CORPORATE MAJOR GOAL
GROUP AREA OF AREA OF GROUP(S) EARNINGS ATTAINMENT
RESPONSIBILITY RESPONSIBILITY A.C.M. PER SHARE
- - -----------------------------------------------------------------------------------------------
Sample 25% 0% 25% 30% 20%
- - -----------------------------------------------------------------------------------------------
SAMPLE RESULTS:
Major Area of Responsibility: Achieved 100% of the budget M.A.O.R.
Business Group A.C.M.:
Actual $21,000,000
Budget $20,000,000
Corporate Earnings per Share: $2.00
Major Goal Attainment: Accomplished all major goals satisfactorily on average.
CALCULATION:
Determining the Business Group A.C.M. Award Percentage
- - ------------------------------------------------------
Business Group A.C.M. = $21,000,000 = 105%
-----------
Performance Percentage $20,000,000
Business Group A.C.M. = (Incremental Performance % above "target"x 7.5%) + 100%
Award Percentage = (5 x 7.5%) + 100%
= 137.5%
Determining the Corporate Earnings Per Share Award Percentage:
- - --------------------------------------------------------------
Corporate EPS = (Actual EPS - Target EPS) x Incremental Payout Percentage
Award Percentage = ($2.00 - $1.90) x 3.95%
= 139.5%
Determining the Incentive Payout:
- - ---------------------------------
1999 Target x 25% x Major Area of Responsibility Award Percentage
20% x 25% x 100% = 5.00%
+
1999 Target x 25% x Business Group A.C.M. Award Percentage
20% x 25% x 137.5% = 6.88%
+
1999 Target x 30% x Corporate Earnings Per Share Award Percentage
20% x 30% x 139.5% = 8.37%
+
1999 Target x 20% x Major Goal Attainment Award Percentage
20% x 20% x 100% = 4.00%
= Award of 24.25% of pay
FINAL PAYOUT = $80,000 X 24.25% = $19,400
10/26/1999 PROPRIETARY AND CONFIDENTIAL