Exhibit 10.2
EAGLE MATERIALS INC.
CEMENT COMPANIES
SALARIED INCENTIVE COMPENSATION PROGRAM
FOR FISCAL YEAR 2009
1. Bonus Pool
To insure reasonableness and
affordability the available funds for bonus payments are determined
as a percent of earnings of the cement companies of Eagle Materials
Inc. The actual percentage may vary from year to year.
For Fiscal Year 2009, the bonus pool
for each subsidiary cement company will be equal to 2.25% of each
company’s operating profit.
Participants must be employed at
fiscal year-end to be eligible for any bonus award. Awards may be
adjusted for partial year participation for participants added
during a year.
Eagle Materials CEO retains the final
right of interpretation and administration of the plan and to amend
or terminate the plan at any time.
2. Eligibility
The Eagle Materials Cement EVP, the
subsidiary cement company Presidents, and his/her direct reports
will be participants in the plan. Additional participants who have
management responsibilities or are in a professional capacity that
can measurably impact earnings may be recommended by subsidiary
cement company presidents subject to the approval of the Eagle
Materials Cement EVP and the Eagle Materials CEO. The addition of
new participants will not affect the total pool available but will
in effect dilute the potential bonuses of the original
participants.
A participant must be an exempt
salaried manager or professional. No hourly or non-exempt employee
may participate. Participants in this plan may not participate in
any other company incentive plan with monetary awards, except for
the Cement Companies Long Term Compensation program, the Eagle
Materials Long Term Compensation Program and the Eagle Materials
Special Situation Program.
3. Allocation of Pool
The subsidiary cement company
Presidents will be eligible for 20% — 30% of the pool funded
from their respective subsidiary company. The subsidiary cement
company Presidents will recommend the distribution of the remainder
of their subsidiary company pool. The participants in the plan and
their percentage of the pool will require approval
of the
Eagle Materials Cement EVP and Eagle Materials CEO at the beginning
of the fiscal year for which the bonus is being earned. For
example:
| |
|
|
|
|
Participant |
|
% of Pool
Available |
|
Company
President
|
|
27 |
% |
|
Plant
Manager
|
|
15 |
% |
|
Vice President,
Sales
|
|
13 |
% |
|
Vice President,
Finance
|
|
9 |
% |
|
Production
Manager
|
|
7 |
% |
|
Maintenance
Manager
|
|
7 |
% |
|
Executive Vice
President
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
100 |
% |
The subsidiary cement company
President’s bonus opportunity will be 50% specific, objective
goals and 50% discretionary as determined by Eagle Materials Cement
EVP taking into consideration overall job performance and
compliance with Eagle Materials Policies and Code of Ethics. All
participants in the plan must have the ability to significantly
affect the performance of the subsidiary company by achieving
measurable, quantifiable, objectives. The subsidiary cement company
Presidents will determine the objective and discretionary balance
of bonus opportunities for the participants in their companies,
subject to approval by Eagle Materials Cement EVP and Eagle
Materials CEO.
4. Objective Criteria
Objective setting is essential to an
effective incentive compensation plan and should be measurable and
focus on areas that have meaningful impact on our operational
performance. Having selected objectives, it is also
