Executive Incentive Plan for Fiscal 2008
On May 15, 2008, the Committee, as well as the Board of Directors of the Company, approved an executive incentive plan for the Companys fiscal year ending March 31, 2009 (fiscal 2008). Participants in the plan include the Companys Chief Executive Officer and all other executive officers. The Committee is responsible for determining the payout under the plan to each executive officer except the Chief Executive Officer. The Board of Directors of the Company determines the payout under the plan for the Chief Executive Officer, taking into account the recommendation received from the Committee.
Pursuant to the plan, the Committee designated for each executive officer a target cash incentive amount, expressed as a percentage of the officers base salary. In establishing these targets, the Committee took into account for each officer the level of total compensation including base salary, cash incentive and equity paid by similar companies for comparable positions based on market data compiled by our Vice President of Human Resources.
The amount of the incentive award actually paid to each executive officer may be less than or greater than the executives target cash incentive, with the amount capped at 156% of the target incentive. Individual incentive awards will be determined following the end of fiscal 2008 based on the following factors and their corresponding weightings:
the Companys earnings before interest, other income (expense), taxes, depreciation, amortization and stock-based compensation (EBITDAS) for fiscal 2008 as compared to the target established by the Committee 40%
the executives achievement of individual, measurable objectives during fiscal 2008 as determined by the Committee for all executives with the exception of the Chief Executive Officer, who is evaluated by the Board of Directors 40%
the executives overall contribution during fiscal 2008 towards the achievement of the Companys financial and non-financial objectives 20%
The following table sets forth each current executive officers target cash incentive for fiscal 2008.
|Target Incentive as % of
|Gregory J. Yurek||Chief Executive Officer and President||60||%||$||345,000|
|Charles W. Stankiewicz||Executive Vice President, AMSC Power Systems||50||%||$||150,000|
|David A. Henry||Senior Vice President, Chief Financial Officer, Treasurer and Secretary||50||%||$||135,000|
|Daniel P. McGahn||Senior Vice President and General Manager, AMSC Superconductors and Asia Pacific||50||%||$||122,500|
|Angelo R. Santamaria||Vice President, Global Manufacturing Operations||50||%||$||105,000|
|Timothy D. Poor||Vice President, Global Sales and Business Development||50||%||$||100,000|
|Alexis P. Malozemoff||Executive Vice President and Chief Technical Officer||35||%||$||82,250|