Attached files

file filename
10-K - ANNUAL REPORT - WORTHINGTON INDUSTRIES INCd10k.htm
EX-21 - SUBSIDIARIES OF WORTHINGTON INDUSTRIES, INC. - WORTHINGTON INDUSTRIES INCdex21.htm
EX-4.9 - AGREEMENT TO FURNISH INSTRUMENTS AND AGREEMENTS DEFINING RIGHTS OF HOLDERS - WORTHINGTON INDUSTRIES INCdex49.htm
EX-24 - POWERS OF ATTORNEY OF DIRECTORS AND EXECUTIVE OFFICERS OF WOR - WORTHINGTON INDUSTRIES INCdex24.htm
EX-23.1 - CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - WORTHINGTON INDUSTRIES INCdex231.htm
EX-23.2 - CONSENT OF INDEPENDENT AUDITOR - WORTHINGTON INDUSTRIES INCdex232.htm
EX-32.2 - SECTION 906 CFO CERTIFICATION - WORTHINGTON INDUSTRIES INCdex322.htm
EX-31.1 - SECTION 302 CEO CERTIFICATION - WORTHINGTON INDUSTRIES INCdex311.htm
EX-31.2 - SECTION 302 CFO CERTIFICATION - WORTHINGTON INDUSTRIES INCdex312.htm
EX-99.1 - WORTHINGTON ARMSTRONG VENTURE CONSOLIDATED FINANCIAL STATEMENTS - WORTHINGTON INDUSTRIES INCdex991.htm
EX-10.7 - FORM OF NOTICE OF GRANT OF STOCK OPTIONS AND OPTION AGREEMENT (1997 LTI PLAN) - WORTHINGTON INDUSTRIES INCdex107.htm
EX-32.1 - SECTION 906 CEO CERTIFICATION - WORTHINGTON INDUSTRIES INCdex321.htm
EX-10.37 - SUMMARY OF ANNUAL CASH PERFORMANCE BONUS AWARDS - WORTHINGTON INDUSTRIES INCdex1037.htm
EX-10.30 - AMENDMENT NO. 8 TO RECEIVABLES PURCHASE AGREEMENT - WORTHINGTON INDUSTRIES INCdex1030.htm
EX-10.17 - FORM OF NONQUALIFIED STOCK OPTION AWARD AGREEMENT (2006 EI PLAN) - WORTHINGTON INDUSTRIES INCdex1017.htm
EX-10.35 - SUMMARY OF ANNUAL BASE SALARIES APPROVED FOR NAMED EXECUTIVE OFFICERS OF WOR - WORTHINGTON INDUSTRIES INCdex1035.htm
EX-10.14 - FORM OF NOTICE OF GRANT OF STOCK OPTIONS AND OPTION AGREEMENT (2003 SO PLAN) - WORTHINGTON INDUSTRIES INCdex1014.htm

Exhibit 10.10

 

MEMORANDUM      

LOGO

To:         
From:          Personal & Confidential
      Date:   
Re:   

Long-Term Incentive Awards: Performance Share and Performance Cash

 

 

 

At its June meeting, the Board’s Compensation Committee approved the grant of Performance Cash and Performance Share Awards for the three-year period ending May 31, 20xx. These awards become payable if the company achieves specified levels (threshold, target, maximum) of selected financial measures. You have been selected as a recipient of these awards.

In an effort to focus on both the quantity of earnings and the amount of capital employed to generate those earnings, the Performance Cash Awards and Performance Share Awards incorporate both an EPS and EVA component. For corporate officers, half of the possible award is allocated to EPS targets and half to EVA targets.

Your target Performance Awards for the three-year performance period ending May 31, 20xx are: (a) a Cash Award of $xxx,xxx and (b) a Performance Share Award of x,xxx common shares of Worthington Industries, Inc. (“Company Stock”). The specific performance targets, and the related Performance Cash and Performance Share Awards for 20xx are listed in the table below.

Three Year Period Ending May 31, 20xx

 

EPS Targets

  20xx Corporate EPS   Cash Award   Share Award

Threshold

  $xxx   $xxx   xxx shares

Target

  $xxx   $xxx   xxx shares

Maximum

  $xxx   $xxx   xxx shares

Cumulative 3-Year Corporate

 

EVA Targets

  EVA Ending 20xx   Cash Award   Share Award

Threshold

  $xxx million   $xxx   xxx shares

Target

  $xxx million   $xxx   xxx shares

Maximum

  $xxx million   $xxx   xxx shares

For the three-year performance period ending May 31, 20xx, all FIFO impact, positive or negative, will be excluded for the purposes of measuring Corporate EPS. No FIFO adjustment will be made to the EVA calculation.

Performance falling between threshold and maximum will be prorated on a linear basis. No payments will be made if performance falls below threshold. Each of the performance measures is freestanding so that you will be able to earn a pay-out based upon the achievement of one measure, even if the threshold performance level is not achieved in the other measure.


Calculation of the Company results and attainment of performance measures will be made solely by the Compensation Committee based upon the Company’s audited consolidated financial statements. The Compensation Committee has the right to make changes and adjustments in calculating the performance measures to take into account unusual or non-recurring events, including, without limitation, changes in tax and accounting rules and regulations; extraordinary gains and losses; mergers and acquisitions and purchases or sales of substantial assets; provided that, if Section 162(m) of the Internal Revenue Code would be applicable to the pay-out of the Performance Awards hereunder, any such change or adjustment must be permissible under Section 162(m).

The determination of the attainment of performance objectives and the amount of the Performance Awards payable will generally be finalized within a reasonable time after the audit of the applicable consolidated financial statements of the Company has been completed. Payments will then be made within a reasonable time after finalization by the Committee, unless there is a need for a delay.

Unless the Committee elects a different form of pay-out, payments of the Cash Award will be made in cash and payment of the Performance Share Award will be made in Company Stock. The Committee may adopt provisions permitting the deferral of a portion or all of the pay-out into a Deferred Compensation Plan, provided that a timely deferral election is made. The Company may require payment of, or may withhold from payments, amounts necessary to meet any federal, state or local tax withholding requirements.

If you are transferred out of your current position of employment into another LTIP-eligible position, your award will generally be amended at the discretion of the Compensation Committee to reflect your new position. In such case, a new award will be given to reflect the remaining time in the Performance Period with new award amounts and new performance targets set in accordance with those established at the beginning of the performance period (similar amounts for those given for comparable positions at the beginning of the performance period). Your awards for the performance period will then be prorated based on the two awards (the previous award for your previous position and the new award for your new position). The proration will be made based on the number of months in each position, prorated over the 36 month period. The Compensation Committee can choose the effective time of the change from your previous performance award to your new performance award when it amends the performance award. If the Compensation Committee elects not to amend the performance award, this award shall remain in place with no proration.

If you are demoted from or otherwise transferred out of your current position to a position that is not LTIP eligible, but remain employed by the Company, at a time that there are more than 12 months remaining in the performance period, your award will be reduced on a prorata basis to reflect the number of months during the performance period in which you are no longer in an LTIP-eligible position. For example, if you are transferred to a non LTIP-eligible position after 20 months of the performance period, your performance award would be prorated on the basis of 20/36.

In general, termination of employment terminates Performance Awards. Termination of employment for reasons of death, disability or retirement will result in a pro rata pay-out for performance periods ending within 24 months after termination, based on the number of months of employment completed by you during the performance period before the effective date of termination. No pay-out will be made for performance periods ending more than 24 months after termination. Termination of employment for any other reason, voluntary or involuntary, prior to the Committee’s determination of the attainment of performance objectives and finalization of the Performance Award amount will result in the forfeiture of all Performance Awards from the Plan.

The provisions of the Plan are incorporated herein by reference and a copy is available at your request.

The potential dollar value of these grants is considerable and should be viewed as significant additional incentive and reward for performance. Let’s be focused in our efforts to ensure the achievement of these performance levels.

Your continuing efforts on behalf of the Company are greatly appreciated. If you have any questions after reviewing the enclosed information, please feel free to call me at 614-xxx-xxxx.