Exhibit 10.6
1997 Incentive Program Measurables
AEROCONTROLEX
1997 Income = $13,693 = 1.304
----------- -------
1997 Objective = $10,500
1997 ROI = 163.73% = 1.408
-------- -------
1997 Objective = 116.25%
Group Performance Factor = .667 x INC + .333 x ROI
= 1.339
ADEL WIGGINS
1997 Income = $10,721 = 1.105
----------- -------
1997 Objective = $9,700
1997 ROI = 114.87% = 1.457
-------- -------
1997 Objective = 78.85%
Group Performance Factor = .667 x INC + .333 x ROI
= 1.222
CORPORATE
1997 Income = $23,713 = 1.226
----------- -------
1997 Objective = $19,338
1997 ROI = 135.15% = 1.402
-------- -------
1997 Objective = 96.42%
Group Performance Factor = .667 x INC + .333 x ROI
= 1.285
1997 Senior Staff Incentive Award Recommendations
`97 Base Incentive Target Award Corporate Group Indiv. Incentive `97 Total
Name Salary Target Factor Factor Factor Award Comp.
=====================================================================================================================
Saugstad, V.* $80,000 15% $12,000 1.50 1.22 0.95 $7,000 $87,000
Skulina, J. $78,500 15% $11,775 1.35 1.34 1.10 $23,500 $102,000
DiFranco, R. $71,660 15% $10,750 1.35 1.34 1.10 $21,400 $93,060
Henderson, R. $109,000 20% $21,800 1.50 1.22 1.15 $45,900 $154,900
Laubenthal, R. $90,000 20% $18,000 1.35 1.34 1.15 $37,500 $127,500
Smith, M.* $80,000 10% $8,000 - - - $4,000 $84,000
Tomerlin, R.* $85,000 10% $8,500 - - - $5,000 $90,000
Iversen, B. $80,000 20% $16,000 1.50 1.22 0.95 $27,800 $107,800
Rodriguez, A. $90,000 20% $18,000 1.35 1.34 1.15 $37,500 $127,500
Burger, C. $60,780 15% $9,117 1.35 1.01 1.05 $13,100 $73,880
Gambino, V.* $48,000 10% $4,800 - - - $3,600 $51,600
Hussell, S. $53,688 15% $8,053 1.35 1.08 1.05 $12,400 $66,088
Kleinberger, R. $72,700 15% $10,905 1.50 1.33 0.50 $10,900 $83,600
Long, D.* $53,796 10% $5,380 - - - $2,700 $56,496
Riley, J. $58,000 15% $8,700 1.35 1.45 1.05 $17,900 $75,900
Stinson, D. $73,800 15% $11,070 1.50 0.967 1.05 $16,900 $90,700
Total $1,184,924 $182,850 $287,100 $1,472,024
* Part year in position or discretionary modification of awards.
1997 - Field Sales Commission Program
`97 Base Target Corp. Group Individual Comm. `97 Total
Name Salary Award Factor Factor Factor Award Compensation
=============================================================================================
Dratwa, D. $67,000 $10,050 1.35 1.66 1.00 $22,500 $89,500
Flynn, B. $66,600 $9,990 1.35 1.015 1.00 $13,700 $80,300
Norwood, J. $66,200 $9,930 1.35 1.393 0.70 $13,100 $79,300
Piwetz, W. $67,600 $10,140 1.35 1.10 0.80 $12,000 $79,600
Total $267,400 $40,110 $61,300 $328,700
Corporate Staff Compensation Recommendations
INCENTIVE COMPENSATION RECOMMENDATIONS:
Name Base Salary Award
---- ----------- -----
W. Nicholas Howley $175,000 $125,000
John D. Peterson, Sr. $168,000 $80,000
Peter B. Radekevich $108,000 $40,000
BASE SALARY PROGRAM RECOMMENDATIONS:
Name New Base Percent Date
---- -------- ------- ----
W. Nicholas Howley $185,000 5.7% 1/1/98
John D. Peterson, Sr. $175,000 4.2% 1/1/98
Peter B. Radekevich $113,000 4.6% 1/1/98
Eileen M. Fallon $50,000 11.1% 1/1/98
1998 TransDigm Incentive Program - Summary
o Annual program based on business plan parameters
o Target awards are a percentage of base salary and vary depending on
position and responsibilities
o Target awards are multiplied by a three factor formula
Actual Incentive Award = Target Award
x Corporate Performance Factor
x Group Performance Factor
x Individual Performance Factor
o Corporate Performance Factor is set at the discretion of the Board of
Directors, based on the performance of TransDigm.
o Group Performance Factor is defined by the following measurables:
Earnings Factor = Actual Earnings/Plan
Investment Factor = Actual ROI/Plan
Bookings Factor = Actual Bookings/Plan
The 1998 Program is based on the following earnings and investment
factors:
Earnings = Group Operating Income
Group Business Plan Earnings
----- ----------------------
AdelWiggins = $14.261 Million
AeroControlex = $18.840 Million
Marathon = $6.005 Million
TransDigm = $36.369 Million
ROI = Earnings/Average Group Investment
Group Business Plan ROI
----- -----------------
Adel Wiggins = 137.6%
AeroControlex = 159.3%
Marathon = 45.9%
TransDigm = 110.9%
For Corporate and Group Staff:
Group Performance Factor = .67 x Earnings Factor +
.33 x Investment Factor
For Product Managers and Sales Specialists:
Group Performance Factor = Bookings Factor
o Individual Performance Factor is set at the discretion of the Office of
the Chairman
Senior Staff Base Salary and
Incentive Program Recommendations
Fiscal Year - 1998
`97 Existing Percent Incent. Incent. 98 Target
Name Position Base Increase New Base % Target Comp.
========================================================================================================
Baker, R Manufacturing $ 92,700 3.6% $ 96,000 20% $ 19,200 $ 115,200
Burger, C Product Line $ 60,780 8.5% $ 66,000 15% $ 9,900 $ 75,900
Beemer, R Product Line $ 70,000 -- $ 70,000 15% $ 10,500 $ 80,500
DiFranco, R Manufacturing $ 71,660 2.7% $ 73,500 15% $ 11,000 $ 84,500
Dratwa, D Sales $ 67,000 3.0% $ 69,000 15% $ 10,350 $ 79,350
Flynn, B Sales $ 66,600 3.6% $ 69,000 15% $ 10,350 $ 79,350
Gambino, V Sales $ 48,000 4.2% $ 50,000 10% $ 5,000 $ 55,000
Gentry, J Controller $ 53,000 -- $ 53,000 15% $ 8,000 $ 61,000
Henderson, R Manufacturing $ 109,000 5.5% $ 115,000 20% $ 23,000 $ 138,000
Howell, L Sales $ 90,500 3.8% $ 94,000 20% $ 18,800 $ 112,800
Hussell, S Sales $ 53,688 6.2% $ 57,000 15% $ 8,550 $ 65,550
Iverson, B Marketing $ 80,000 10.0% $ 88,000 20% $ 17,600 $ 105,600
Laubenthal, R Manufacturing $ 90,000 5.5% $ 95,000 20% $ 19,000 $ 114,000
Lemire, P Sales $ 34,000 5.8% $ 36,000 10% $ 3,600 $ 39,600
Long, D Sales $ 53,796 3.7% $ 55,800 10% $ 5,580 $ 61,380
McLatcher, D Sales $ 86,462 2.9% $ 89,000 10% $ 8,900 $ 97,900
Riley, J Product Line $ 58,000 6.9% $ 62,000 15% $ 9,300 $ 71,300
Rodriguez, A Marketing $ 90,000 5.5% $ 95,000 20% $ 19,000 $ 114,000
Saugstad, V Controller $ 80,000 6.3% $ 85,000 15% $ 12,750 $ 97,750
Scardaville, P Engineering $ 93,800 4.5% $ 98,000 20% $ 19,600 $ 117,600
Skulina, J Controller $ 78,500 4.5% $ 82,000 15% $ 12,300 $ 94,300
Smith, M Manufacturing $ 80,000 3.8% $ 83,000 10% $ 8,300 $ 91,300
Stinson, D Product Line $ 73,800 4.3% $ 77,000 15% $ 11,550 $ 88,550
Tomerlin, R Engineering $ 85,000 5.9% $ 90,000 15% $ 13,500 $ 103,500
Tremont, R Sales $ 48,000 4.2% $ 50,000 10% $ 5,000 $ 55,000
Vorderkunz, G Manufacturing $ 62,400 5.8% $ 66,000 10% $ 6,600 $ 72,600
Wissinger, R Product Line $ 79,000 -- $ 79,000 15% $ 11,850 $ 90,850
Total $1,955,686 $2,043,300 $ 319,080 $2,362,380
EXHIBIT
1998 BOOKINGS TARGETS
AEROCONTROLEX GROUP
Burger, C. $13,178,000
Dratwa, D. $7,645,278
Gambino, V. $2,624,765
Hussel, S. $1,437,157
Lemire, P. $1,239,500
Long, D. $792,287
Riley, J. $27,784,000
Tramont, R. $5,309,000
ADEL WIGGINS GROUP
Beemer, R. $5,865,000
Flynn, B. $6,225,000
Stinson, D. $6,875,000
Wissinger, R. $22,595,000
MARATHON POWER TECHNOLOGIES
McLatcher, D. $12,680,000
1994 STAFF INCENTIVE AWARD RECOMMENDATIONS
CORPORATE PERFORMANCE FACTOR
FY-94 EARNINGS $10,174,000
PROGRAM TARGET $9,947,000
RECOMMENDED CORPORATE FACTOR = 1.000
GROUP PERFORMANCE FACTORS
ADELWIGGINS GROUP
FY-94 EARNINGS $6,203,000
PROGRAM TARGET $6,822,000
EARNINGS FACTOR = 0.909
FY-94 AVERAGE ROI 49.1%
PROGRAM TARGET 59.1%
INVEST FACTOR = 0.831
GROUP PERFORMANCE FACTOR = 0.883
AEROCONTROLEX GROUP
FY-94 EARNINGS $3,971,000
PROGRAM TARGET $3,125,000
EARNINGS FACTOR = 1.271
FY-94 AVERAGE ROI 33.7%
PROGRAM TARGET 21.0%
INVEST FACTOR = 1.605
GROUP PERFORMANCE FACTOR = 1.381
1994 SENIOR STAFF INCENTIVE AWARD RECOMMENDATIONS
94-BASE INCENTV TARGET INDIVL INCENTV 94-TOTAL
NAME SALARY TARGET AWARD FACTOR AWARD COMP
BALLINGER, N $73,500 15% $11,025 0.50 $7,613 $81,113
BUNDY, D $75,700 15% $11,355 0.70 $7,021 $82,721
CANNON, C $90,000 15% $13,500 0.60 $7,155 $97,155
McMURTREY, G $70,000 20% $14,000 0.95 $18,367 $88,367
SAKHAVI, M $79,500 20% $15,900 0.40 $5,618 $85,118
DiFRANCO, R $59,500 15% $8,925 1.05 $12,941 $72,441
LAUBENTHAL, R $70,000 20% $14,000 1.00 $19,333 $89,333
FLOWERS, M $67,000 20% $13,400 0.80 $9,470 $76,470
RODRIGUEZ, A $70,000 20% $14,000 1.05 $20,300 $90,300
TURRIFF, J $75,000 20% $15,000 1.00 $13,251 $88,251
MURG, L $58,000 10% $5,800 0.85 $6,808 $64,808
RADEKEVICH, P $90,000 20% $18,000 1.00 $18,000 $108,000
TOTAL $154,905 $145,877
1994 PRODUCT MANAGER INCENTIVE AWARD RECOMMENDATIONS
INCENTV FY-94 BOOKINGS
NAME TARGET BOOKINGS FACTOR
BURGER, C $5,630,000 $5,811,000 1.032
IVERSEN, B $11,742,000 $12,363,000 1.053
KNUROWSKI, R $1,200,000 $1,180,000 0.983
LUNTZ, M $3,475,000 $3,925,281 1.130
WATSON, D $6,173,000 $6,350,000 1.029
94-BASE INCENTV TARGET INDIVL INCENTV 94-TOTAL
NAME SALARY TARGET AWARD FACTOR AWARD COMP
BURGER, C $55,000 15% $8,250 0.95 $8,089 $63,089
IVERSEN, B $60,000 15% $9,000 1.05 $9,950 $69,950
KNUROWSKI, R $64,400 15% $9,660 1.00 $9,499 $73,899
LUNTZ, M $40,800 15% $6,120 1.15 $7,950 $48,750
WATSON, D $103,000 20% $20,600 1.00 $21,191 $124,191
TOTAL $53,630 $56,679
1994 FIELD SALES COMMISSION/INCENTIVE AWARDS
BOOKINGS BOOKINGS BOOKINGS EXPECTA- PAYOUT TARGET ACTUAL
NAME TARGET ACTUALS RATIO TIONS FACTOR AWARD AWARD
DRATWA, D $4,204,000 $4,838,090 1.151 0.700 1.275 $8,850 $11,287
FLYNN, W $7,092,000 $5,687,571 0.802 0.750 1.51 $8,250 $9,496
NORWOOD, J $4,204,000 $4,838,090 1.151 0.000 0.575 $9,000 $5,179
PIWETZ, W $3,767,000 $5,346,224 1.419 0.500 1.210 $9,000 $10,887
WILP, W $4,010,000 $5,368,649 1.339 1.000 1.669 $8,700 $14,524
TransDigm Incentive Program - Summary
o Annual program based on business plan parameters
o Target awards are a percentage of base salary and vary depending on
position and responsibilities
o Target awards are multiplied by a three factor formula
Actual Incentive Award = Target Award
x Corporate Performance Factor
x Group Performance Factor
x Individual Performance Factor
o Corporate Performance Factor is set at the discretion of the Board of
Directors, based on the performance of TransDigm.
o Group Performance Factor is defined by the following measurables:
Earnings Factor = Actual Earnings/Plan
Investment Factor = Actual ROI/Plan
Bookings Factor = Actual Bookings/Plan
The 1994 Program is based on the following earnings and investment
factors:
Earnings = Group Operating Income
Less
Net Consolidation Expense
Group Business Plan Earnings
----- ----------------------
Adel Wiggins $6,822
AeroControlex $3,125
TransDigm $9,947
ROI = Earnings/Average Group Investment
Group Business Plan ROI
----- -----------------
AdelWiggins 59.1%
AeroControlex 21.0%
TransDigm 37.6%
For Corporate and Group Staff:
Group Performance Factor = .67 x Earnings Factor +
.33 Investment Factor
For Product Managers:
Group Performance
Factor = Bookings Factor
o Individual Performance Factor is set at the discretion of the Office of
the Chairman
1995 TransDigm Incentive Program Recommendations
o Continue program based on Business Plan parameters
o Continue Target Awards based on position and responsibilities
o Continue three factor formula, as used in 1994
o Revise Earnings and ROI targets
Earnings ROI
Organization Target Target
------------ ------ ------
AdelWiggins $8,631 To Be Established
AeroControlex $5,980 By 12/30/94
TransDigm $14,611
Incentive Staff Base Salary Program Recommendations
Fiscal Year - 1995
Existing New Percent Date
Name Position/Location Base Base Increase Effective
- ---- ----------------- ---- ---- -------- ---------
Ballinger, Norman Controller, AeroControlex 73.5 N.C. - -
Bundy, Dale Controller, AdelWiggins 75.7 78.0 3.0 1/95
Burger, Charles Product Line, AeroControlex 52.0 54.0 3.8 1/95
Cannon, Cliff Engineering, AdelWiggins 87.5 N.C. - -
DiFranco, Rose Manufacturing, AeroControlex 59.5 62.8 5.5 1/95
Flowers, Malcolm Manufacturing, AdelWiggins 67.0 69.0 3.0 1/95
Hussell, Stephen Product Line, AeroControlex 48.0 49.5 3.0 6/95
Iversen, Bernie Product Line, AeroControlex 60.0 63.0 5.0 1/95
Knurowski, Robert Product Line, AdelWiggins 64.4 67.0 4.0 1/95
Laubenthal, Raymond Manufacturing, AeroControlex 70.0 73.5 5.0 1/95
Luntz, Matt Product Line, AdelWiggins 40.8 47.0 15.2 1/95
McMurtrey, Gary Engineering, AeroControlex 70.0 73.2 4.5 1/95
Morand, Verne Product Line, AdelWiggins 76.0 N.C. - -
Murg, Larry Product Line/QA, AeroControlex 58.0 60.0 3.5 1/95
Rodriguez, Albert Sales, AeroControlex 70.0 73.5 5.0 1/95
Stinson, Dennis Product Line, AdelWiggins 65.0 67.6 4.0 1/95
Turriff, John Sales, AdelWiggins 75.0 78.4 4.5 1/95
Watson, Donald Product Line, AdelWiggins 103.0 106.0 3.0 1/95
Field Sales Salary & Commission/Incentive Program Recommendations
Fiscal Year - 1995
`94 Base % `95 Base Incentive Total
Name Salary Increase Salary % $ Amount
- ---- ------ -------- ------ - - ------
D. Dratwa 59,000 4.0 61,400 15% 9,210 70,610
B. Flynn 55,000 9.1 60,000 15% 9,000 69,000
J. Norwood 60,000 4.0 62,400 15% 9,360 71,760
W. Piwetz 61,000 4.0 63,400 15% 9,510 72,910
B. Wilp 58,000 5.2 61,000 15% 9,150 70,150
293,000 5.1 308,200 15% 46,230 354,430
Field Sales Commission/Incentive Structure 1995
Target commission/incentive is 15% of base salary and is made up of two parts:
% of Incentive % of Salary
-------------- -----------
Booking Quota 50% 7.5%
Expectations 50% 7.5%
1995 SENIOR STAFF INCENTIVE AWARD PROGRAM
95-BASE INCENTV TARGET 95-TOTAL
NAME SALARY TARGET AWARD COMP
BUNDY, D $78,000 15% $11,700 $89,700
SKULINA, J $64,000 15% 9,600 $73,600
McMURTREY, G $73,200 20% $14,640 $87,840
DiFRANCO, R $62,800 15% $9,420 $72,220
LAUBENTHAL, R $73,500 20% $14,700 $88,200
RODRIGUEZ, A $73,500 20% $14,700 $88,200
TURRIFF, J $78,400 20% $15,680 $94,080
MURG, L $60,000 10% $6,000 $66,000
FLOWERS, M $69,000 15% $10,350 $79,350
RADEKEVICH, P $95,000 20% $19,000 $114,000
TOTAL $125,790
1995 PROGRAM MANAGER INCENTIVE AWARD PROGRAM
INCENTV 95-BASE INCENTV TARGET 95-TOTAL
NAME TARGET SALARY TARGET AWARD COMP
BURGER, C $6,719,000 $54,000 15% $8,100 $62,100
HUSSELL, S $1,450,000 $49,500 10% $4,950 $54,450
IVERSEN, B $12,547,000 $63,000 15% $9,450 $72,450
SUBTOTAL $22,500
LUNTZ, M $13,700,000 $47,000 15% $7,050 $54,050
KNUROWSKI, R $2,100,000 $67,000 15% $10,050 $77,050
MORAND, V $2,500,000 $76,000 15% $11,400 $87,400
STINSON, D $12,000,000 $67,600 15% $10,140 $77,740
WATSON, D $7,000,000 $106,000 20% $21,200 $127,200
SUBTOTAL $59,840
Corporate Staff Compensation Recommendations
CORPORATE PERFORMANCE FACTOR
Recommend a corporate performance factor of 1.15 based on:
- Sales Growth of 10% (96/95)
- EBITDA Growth of 30% (96/95)
- Working Capital Reduction of $5.5 Million
- Progress of New Market/Product Programs
Recommend Award of 3rd year performance options.
INCENTIVE COMPENSATION RECOMMENDATIONS:
Name Base Salary Award
---- ----------- -----
W. Nicholas Howley $165,000 $85,000
John D. Peterson, Sr. $160,000 $25,000
Peter B. Radekevich $102,000 $25,000
BASE SALARY PROGRAM RECOMMENDATIONS:
Name New Base Percent Date
- ---- -------- ------- ----
W. Nicholas Howley $ 175,000 6.0% 1/1/97
John D. Peterson, Sr. $ 168,000 5.0% 1/1/97
Peter B. Radekevich $ 108,000 5.8% 1/1/97
Eileen M. Fallon $ 45,000 9.7% 1/1/97
1996 TransDigm Incentive Program - Summary
o Annual program based on business plan parameters
o Target awards are a percentage of base salary and vary depending on
position and responsibilities
o Target awards are multiplied by a three factor formula
Annual Incentive Award = Target Award
x Corporate Performance Factor
x Group Performance Factor
x Individual Performance Factor
o Corporate Performance Factor is set at the discretion of the Board of
Directors, based on the performance of TransDigm.
o Group Performance Factor is defined by the following measurables:
Earnings Factor = Actual Earnings/Plan
Investment Factor = Actual ROI/Plan
Bookings Factor = Actual Bookings/Plan
The 1996 Program is based on the following earnings and investment
factors:
Earnings = Group Operating Income
Less
Net Consolidation Expense
Group Business Plan Earnings
AdelWiggins $7,852
AeroControlex $7,670
TransDigm $15,042
ROI = Earnings/Average Group Investment
Group Business Plan ROI
AdelWiggins 60.98%
AeroControlex 73.89%
TransDigm 66.74%
1996 TransDigm Incentive Program - Summary
(Continued)
For Corporate and Group Staff:
Group Performance Factor = .67 x Earnings Factor +
.33 x Investment Factor
For Product Managers and Field Sales:
Group Performance Factor = Bookings Factor
o Individual Performance Factor is set at the discretion of the Office of
the Chairman
1996 Incentive Program Measurables
AEROCONTROLEX
1996 Income = $9,354 = 1.220
----------- ------
1996 Objective = $7,670
1996 ROI = 129.97% = 1.769
-------- -------
1996 Objective = 73.89%
Group Performance Factor = .667 x INC + .333 x ROI
= 1.40
ADELWIGGINS
1996 Income = $8,447 = 1.080
----------- ------
1996 Objective = $7,852
1996 ROI = 70.61% = 1.158
-------- ------
1996 Objective = 60.98%
Group Performance Factor = .667 x INC + .333 x ROI
= 1.11
CORPORATE
1996 Income = $17,230 = 1.145
1996 Objective = $15,042
1996 ROI = 92.86% = 1.391
-------- ------
1996 Objective = 66.74%
Group Performance Factor = .667 x INC + .333 x ROI
= 1.23
1996 Bookings Performance
Name Position 1996 Objective 1996 Bookings Group Factor
============================================================================================
Burger, C. AC-Prod Line $8,230,000 $8,280,000 1.01
Hussel, S. AC-Prod Line $4,800,000 $5,440,000 1.13
Iversen, B. AC-Prod Line $15,100,000 $16,400,000 1.08
Kleinberger, R. AW-Prod Line $4,330,000 $3,260,000 0.87
Luntz, M. AW-Prod Line $11,200,000 $12,660,000 1.13
Stinson, D. AW-Prod Line $18,800,000 $19,600,000 1.04
Norwood, J. Field Sales $5,510,000 $7,840,000 1.42
Dratwa, D. Field Sales $4,960,000 $5,390,000 1.09
Piwetz, W. Field Sales $4,400,000 $4,270,000 0.97
Flynn, B. Field Sales $6,640,000 $6,290,000 0.95
Wilp, B. Field Sales $3,880,000 $3,660,000 0.95
1996 Senior Staff Incentive Award Recommendations
Name `96 Base Incentive Target Corporate Group Indiv. Incentive `96 Total
Salary Target Award Factor Factor Factor Award Comp.
======================================= =================================================================
Chomko, W. $88,000 15% $13,200 1.15 1.11 0.95 $16,000 $104,000
Skulina, J. $74,000 15% $11,100 1.15 1.40 1.10 $19,600 $93,600
McMurtrey, G. $75,800 20% $15,160 1.15 1.40 0.85 $20,700 $96,500
DiFranco, R. $65,600 15% $9,840 1.15 1.40 1.15 $18,200 $83,800
Laubenthal, R. $80,000 20% $16,000 1.15 1.40 1.15 $29,600 $109,600
Henderson, R. $103,000 20% $20,600 1.15 1.11 1.10 $28,800 $131,800
Rodriguez, A. $80,000 20% $16,000 1.15 1.40 1.15 $29,600 $109,600
Turriff, J. $85,000 20% $17,000 1.15 1.11 0.80 $17,300 $102,300
Murg, L. $62,300 10% $6,230 1.15 1.40 0.85 $8,500 $70,800
Burger, C. $58,200 15% $8,730 1.15 1.01 1.05 $10,700 $68,900
Hussell, S. $52,000 10% $5,200 1.15 1.13 0.85 $5,800 $57,800
Iversen, B. $68,600 15% $10,290 1.15 1.08 1.15 $14,700 $83,300
Kleinberger, $70,600 15% $10,590 1.15 0.87 0.90 $9,500 $80,100
R.
Luntz, M. $52,000 15% $7,800 1.15 1.13 0.85 $8,600 $60,600
Stinson, D. $70,600 15% $10,590 1.15 1.04 1.00 $12,700 * $83,300
---------- -------- -------- ----------
Total $1,085,700 $178,330 $250,300 $1,373,100
========== ======== ======== ==========
* Discretionary modification of awards
1996 - Field Sales Commission Program
`96 Base Target Group Individual Comm. `96 Total
Name Salary Award Factor Factor Award Compensation
===============================================================================================
Norwood, J. $64,000 $9,600 1.42 0.85 $11,500 $75,500
Dratwa, D. $64,300 $9,700 1.09 1.10 $11,300 $75,600
Piwetz, W. $65,300 $9,800 0.97 0.90 $9,700 $75,000
Flynn, B. $64,200 $9,600 0.95 1.00 $9,800 $74,000
Wilp, B. $63,600 $9,600 0.95 1.00 $10,000 $73,600
------- -------
Total $48,300 $52,300
======= =======
Changed per Douglas W. Peacock December 13, 1996.
1996 - Field Sales Commission Program
`96 Base Target Group Individual Comm. `96 Total
Name Salary Award Factor Factor Award Compensation
===============================================================================================
Norwood, J. $64,000 $9,600 1.42 0.85 $10,900 $74,900
Dratwa, D. $64,300 $9,700 1.09 1.10 $10,600 $74,900
Piwetz, W. $65,300 $9,800 0.97 0.90 $9,200 $74,500
Flynn, B. $64,200 $9,600 0.95 1.00 $9,400 $73,600
Wilp, B. $63,600 $9,600 0.95 1.00 $9,400 $73,000
------- -------
Total $48,300 $49,500
======= =======
Senior Staff Base Salary and
Incentive Program Recommendations
Fiscal Year - 1997
Name Position Existing Percent New Base Incent. Incent. 97 Target
Base Increase % Target Comp.
=================================================================================================
Burger, C. Product Line $58,200 4.8% $61,000 15% $9,200 $70,200
Chomko, W. Controller $88,000 2.8% $90,500 15% $13,600 $104,100
DiFranco, R. Manufacturing $65,600 5.9% $69,500 15% $10,400 $79,900
Henderson, R. Manufacturing $103,000 5.8% $109,000 20% $21,800 $130,800
Hussell, S. Product Line $52,000 3.2% $53,700 10% $5,400 $59,100
Iverson, B. Product Line $68,600 9.3% $75,000 15% $11,300 $86,300
Kleinberger, R. Product Line $70,600 3.0% $72,700 15% $10,900 $83,600
Laubenthal, R. Manufacturing $80,000 12.5% $90,000 20% $18,000 $108,000
Luntz, M. Product Line $52,000 9.6% $57,000 15% $8,600 $65,600
McMurtrey, G. Engineering $75,800 2.9% $78,000 -- -- $78,000
Murg, L. QA $62,300 2.7% $64,000 -- -- $64,000
Rodriguez, A. Sales $80,000 12.5% $90,000 20% $18,000 $108,000
Skulina, J. Controller $74,000 6.1% $78,500 15% $11,800 $90,300
Stinson, D. Product Line $70,600 4.5% $73,800 15% $11,000 $84,800
Turriff, J. Sales $85,000 -- $85,000 20% $17,000 $102,000
---------- ----- ----------
Total $1,085,700 5.7% $1,147,700
========== ===== ==========
1996 Field Sales Salary and Commission
Incentive Program Recommendations
Fiscal Year 1997
96 Base % 97 Base Incentive Incentive 97 Total
Name Salary Increase Salary % Target Compensation
==============================================================================================
Dratwa, D. $64,300 4.4% $67,000 15% $10,100 $77,100
Flynn, B. $64,200 3.7% $66,600 15% $10,000 $76,600
Norwood, J. $64,000 3.4% $66,200 15% $10,000 $76,200
Piwetz, W. $65,300 3.6% $67,600 15% $10,100 $76,700
Wilp, B. $63,600 3.7% $66,000 15% $9,900 $75,900
------- ------- ------ -------
Total $321,400 $333,400 $50,100 $382,500
======== ======== ======= ========
FIELD SALES COMMISSION/INCENTIVE STRUCTURE FOR 1997
The structure will change to the three factor formula applicable to other
participants with the bookings ratio used for the group factor. See below.
Annual Incentive Award = Target Award
x Corporate Performance Factor
x Bookings Ratio Factor
x Individual Performance Factor