Exhibit 10.4
EAGLE MATERIALS INC.
AMERICAN GYPSUM COMPANY
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 American Gypsum Company (the
“Company”). The actual percentage may vary from year to
year.
For Fiscal Year 2009, the bonus pool
will be equal to 2.25% of American Gypsum 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 American Gypsum Company
President, Vice Presidents and Plant Managers 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 American Gypsum
Company President subject to the approval of the Eagle Materials
CEO. The addition of new plan 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
American Gypsum Company’s Long-Term Compensation Program, the
Eagle Materials Long-Term Compensation Program and the Eagle
Materials Special Situation Program.
3. Allocation of Pool
The American Gypsum Company President
will be eligible for 20% — 25% of the pool. The American
Gypsum Company President will recommend the distribution of the
remainder of the company pool. The participants in the plan and
their percentage of the pool will be approved by the 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
|
|
22 |
% |
|
Vice
Presidents
|
|
34 |
% |
|
Plant
Managers
|
|
20 |
% |
|
Other Participants
(Directors, Superintendents)
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
100 |
% |
The American Gypsum Company
President’s bonus opportunity will be 50% objective goals and
50% discretionary as determined by Eagle Materials CEO 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 American Gypsum Company President will determine
the objective and discretionary balance of bonus opportunities for
the other participants in this program, subject to approval by the
Eagle Materials CEO.
4. Objective Criteria
Objective setting is essential to an
effective incentive compensation plan. Objectives should be
measurable and focus on areas that have meaningful impact on our
operational performance. Having sele
