from 10-K405
1 page
<page> Summary Compensation System Changes 1. Location Bonus Proposed: 6.0% Times Location Ebt (After Working Capital) Change: None 2. District Manager Bonus Pool Proposed: A. 2% of Corporate Net Earnings After Tax. B. 50% of Amount Derived in "A" to Be Paid Out Based on Their District's Performance. Change: Previous Plan Was Based on .13% of Corporate Eat for Each District Manager Plus .5% of Their Unit's Operating Income. the New Method Would More Equitably Distribute Bonuses Based on Both Corporate and Individual District Performance. 3. Corporate Department Manager and Other Key Employee Bonues Proposed: 1.8% Times Corporate Net Income Divided Among Participants Based on Salary. Change: Consolidate Existing Practice of Two Different Pools of Corporate Key Department Managers and Other Key Personnel Into One Pool. 4. Officer Bonus Proposed: A. 5.2% Times Corporate Net Income Divided Among Participants Based on Salary. B. an Additional 1.0% Times Corporate Net Income for the CEO. Change: None 5. Our 401(k) Program Includes a 50% Match of the 1st 2% and 25% of the Next 3% an Employee Saves. Proposed: A. Effective 4-1-97 (If Company Performance Is on Budget) Improve the Match to 50% of the First 3% and 25% of the Next 2% in Order to Improve Employee Participation. B Cost Is Estimated to Be $100,000 to $150,000 Depending Upon Participation. This Improvement (Which Was Originally Planned as Improving the Match From 50% of the First 2% to 75% on 7-1-95 and Has Been Delayed Since That Time) Is a Necessary Step in Our Gradual Effort to Improve Nonunion Retirement Plans. Current Costs for Our Nonunion 401(k) Plan Is $350.00 Per Year for an Employee Earning $20,000. a Similar Union Employee Costs $2400 - 3600 Per Year. Changed: None 6. 401(k) Profit Sharing Stock Plan Proposed: 5.0% Times Corporate Net Income Change: None 7. Supplemental Retirement Plans Proposed: 6.0% Times Corporate Net Income. Change: None
