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AIRGAS, INC.
EXECUTIVE BONUS PLAN
Airgas, Inc.
(the “Company”) believes in providing incentives to
attract, retain and reward Executive Officers who are responsible
for providing leadership to the Company in attaining established
business objectives.
The purpose of
the Airgas, Inc. Executive Bonus Plan (the “Plan”) is
to align management’s efforts with the strategic goals of the
Company through competitive annual incentive opportunities. The
Plan will be effective from April 1, 2008 to March 31,
2009 (the “Plan Year”) and will automatically renew
upon the anniversary date of the Plan unless terminated by the
Governance and Compensation Committee of the Board of Airgas, Inc.
(the “Committee”).
The Chief
Executive Officer and Executive Officers
(“Participants”) are eligible for participation in the
Plan provided that such officers are employed by the Company on the
date Awards (as defined below) are paid pursuant to the Plan
(unless previously terminated due to retirement, disability or
death as more fully described herein). For purposes of the Plan, an
Executive Officer is defined as those employees who constitute
“officers” for the purposes of Section 16 of the
Securities Exchange Act of 1934, and any other employee deemed to
be a “covered employee” within the meaning of Section
162(m) of the Internal Revenue Code of 1986, as amended, as such
section may be amended.
Participants in
the Executive Bonus Plan will be eligible for an annual cash
incentive award (the “Award”) based on the achievement
of predetermined goals as set forth in the Performance Measurement
section of the Plan. Participants will have an assigned Award
target equal to a specific percentage of salary earned during the
Plan Year. For this purpose, salary is defined as the base pay an
individual earns during the Plan Year. An annual Award target is
determined based on the Participant’s position in the
organization. The maximum Award that may be paid in any single year
to any Participant is $1,500,000.
All Awards
payable shall be based solely upon the achievement of specific
performance targets based on one or more of the following
criteria:
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Earnings per share (EPS)
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Return on capital (ROC)
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Return on average capital employed
(RACE)
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Earnings before interest, taxes,
depreciation and amortization (EBITDA)
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Sales
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Return on equity (ROE)
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After tax cash flow
(ATCF)
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Free cash flow (FCF)
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Operating expense as a percentage of
sales
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Gross profit
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Days purchases outstanding
(DPO)
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</</tr> |
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