Exhibit 10.14
TEXAS INDUSTRIES,
INC.
ANNUAL INCENTIVE
PLAN
adopted pursuant to
the
Master Performance-Based
Incentive Plan
This Annual Incentive Plan is
adopted by the Compensation Committee of the Board of Directors
pursuant to the Texas Industries, Inc. Master Performance-Based
Incentive Plan (“Master Incentive Plan”). This Annual
Incentive Plan is subject to all of the terms and conditions of the
Master Incentive Plan. Terms not defined in this Annual Incentive
Plan have the same meanings as in the Master Incentive Plan.
Amendments and exceptions to this Annual Incentive Plan may be made
only in the manner provided in the Master Incentive
Plan.
Fiscal year 2010
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B.
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Component
Plans and Participants
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This Annual Incentive Plan is
comprised of the following component plans:
Regional Plans:
Central Region
Plan–Participants are managers of each facility or operation
in the region comprised of Texas, Oklahoma, Louisiana and any state
other than those in the Western Region, and other Employees in such
region who are not included in the TXI Plan or another incentive
plan (such as an operations/production plan or a sales
plan).
Western Region
Plan–Participants are managers of each facility or operation
in the region comprised of California and Colorado, and other
Employees in such region who are not included in the TXI Plan or
another incentive plan (such as an operations/production plan or a
sales plan).
TXI Plan:
Participants are the President and
CEO, Vice Presidents, other Officers, Employees in staff functions
(Information Services, Legal, Environmental, Human Resources, Real
Estate (i.e., Brookhollow entities), Controller, Financial
Services, Treasury, etc.) and Employees in operating functions that
cover more than one region.
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C.
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Return on
Equity Objective
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The Company has established an
objective of having, over time, an average return on equity
(“ROE”) at least 25% better than the U. S.
manufacturing industry average. The Company’s annual ROE
objective is translated into a return-on-assets (“ROA”)
goal, which allows Participants to use the Company’s monthly
accounting of operating results to calculate progress toward goal
achievement.
This Annual Incentive Plan
establishes minimum and target ROA goals. The combined result of
regional performances meeting the minimum goal should produce a ROE
better than the U.S. manufacturing industry annual average of
12%.
ROA for a region is calculated by
dividing Performance Period operating profit for the region
(earnings before corporate overhead, interest and taxes) by the
average book value of the adjusted operating assets of the region
(which is then expressed as a percentage by multiplying the result
by 100).
The average book value of the
adjusted operating assets of a region is determined by averaging
the book values of the adjusted operating assets at the beginning
of the Performance Period and the end of each fiscal quarter in the
Performance Period. If significant assets are added or removed
during a quarter, the book value at the end of such quarter will be
adjusted by prorating the new or removed assets based on the time
operated during such quarter.
Profits and losses considered to be
extraordinary (e.g., the sale of a major operating facility) will
not be included in the ROA calcu
