As a means of rewarding employees for their contribution toward the success of the Company, a 2015 Short-Term Incentive Plan (STIP) has been instituted. The STIP is designed to link a portion of employees’ total compensation to the attainment of specific, measurable, and bottom-line oriented key company performance indicators.
The Plan applies to all non-unionized, regular, salaried, employees of the Company. Eligibility for or receipt of incentive pay should not be considered as automatic, retroactive or precedent based.
The STIP relates to the achievement of performance goals over the period from January 1, 2015 to December 31, 2015.
The STIP is designed to reflect the different employee accountabilities and diversity of positions. In order to tie incentive payouts to employee performance and the achievement of key performance indicators, the STIP’s design is adapted to all groups of employees: Operations, Sales and Corporate.
The amount of award a participant is eligible to receive is expressed as a certain percentage of the employee’s base salary as determined by his grade level. Base salary is the rate in effect at December 31, 2015. The Company determines the threshold, target and maximum incentive payouts to participants, which payout levels vary per grade level. Supervisors are responsible to inform their employees of their respective threshold, target and maximum incentive award payouts.
Discretionary Plan and Plan Administration
› Incentive payouts are within the complete and sole discretion of the Company.
› The Company will approve actual achievement of performance measures and individual awards based on actual achievement before awards are granted and paid, subject to the overall maximum incentive payout described below under “Maximum and Minimum Payout”.
› The Company has the right to adjust any or all awards; this includes the right to eliminate any or all awards for any year despite achievement of performance measures, even if such decision is made after the end of the performance period.
› The Company may modify, suspend, amend or terminate the STIP at any time.
› Any payment made under this plan is subject to the Company's recoupment policy.
› With respect to any employee, the Company reserves the right to reduce or even cancel incentive awards in the event an employee has demonstrated a poor level of performance, whether or not the Company or group performance levels have been met.
› The demonstrated effectiveness assessment of each employee must be completed to justify an award under the STIP.
› Adjustments may be made to the financial metrics for closure costs, impairment charges and other related charges, severance costs, net loss or gain on the disposition of assets, strategic capital expenditures and similar items.
› Adjustments may be made to the cost metrics for specific reasons such as market downtime, major variation in grade mix, major changes in input price, restructuring or reorganization costs, and similar items.
› Any adjustment to the performance metrics has to be formally approved before implementation.
› Awards under the STIP are to be paid in a lump sum no later than March 31, 2016.