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EXHIBIT 10.14
AIRGAS, INC.
FISCAL YEAR 2004 EXECUTIVE BONUS PLAN
PURPOSE OF THE
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 Company's
Fiscal Year 2004 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, 2003 to March 31,
2004 (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").
ELIGIBILITY
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 a President, COO,
Division President, Senior Vice President, 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.
TARGET AWARDS
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.
PERFORMANCE
MEASUREMENT
All Awards payable shall be
based solely upon the achievement of specific
performance targets based on
one or more of the following criteria:
- Earnings per
share (EPS)
- Return on
capital (ROC)
- Return on
average capital employed (RACE)
- Earnings before
interest, taxes, depreciation and amortization (EBITDA)
- Sales
- Return on equity
(ROE)
- After tax cash
flow (ATCF)
- Free cash flow
(FCF)
- Operating
expense as a percentage of sales
- Gross
profit
- Days purchases
outstanding (DPO)
- Operating income
(OI)
- Days sales
outstanding (DSO)
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- Working
capital
Final Award payments will
vary based on the level of achievement measured
against pre-determined
performance targets. Depending upon a Participant's
position and
responsibilities, these various performance measures,
assessed
based on different
weightings, will determine the Award.
The Committee will establish
the specific performance targets for the Plan
within each of the above
criteria within 90 days after the beginning of the
respective Pla
