EXHIBIT 10.6
(1997 10-K)
EXECUTIVE STAFF F'98 BONUS PLAN MEASUREMENTS AND CRITERIA
Executive Staff Measurements:
- - -----------------------------
The fiscal 1998 bonus plan for executive staff will consist of the following:
a) 50% APW Shareholder Value Generated (SVG)
b) 50% APW Earnings Per Share (EPS)
Supporting Definitions:
- - -----------------------
Earnings Per Share = Net Income / Average Number of Common and Common
Equivalent Shares Outstanding during the period.
Shareholder Value Generated = Operating Profit (before amortization) less 8%
of Assets Deployed.
Assets Deployed = Adjusted Assets less Operating Liabilities
Bonus Measurement:
0% 100% 200%
(Target)
--------------------------------------------
50% APW Shareholder Value Generated $50.0 MM $70.0 MM $80.0 MM
50% APW Earnings Per Share $ 3.00 $ 3.50 $ 3.75
Name Functional Area Proposed Bonus Payout @ 100%
- - ------------------------------------------------------------------------------
Sim CEO $375,000
Arzbaecher CFO $100,000
ENGINEERED SOLUTIONS MULTI-BUSINESS UNITS F 98 BONUS PLAN MEASUREMENTS
Multi-Business Unit Leader Measurements:
- - ----------------------------------------
The fiscal 1998 bonus plan for Engineered Solutions multi-business unit
leader will consist of the following:
a) 80% Engineered Solutions CMM (1) (2) (3)
b) 20% APW Financial Results (SVG and EPS)
Albrecht
0% 100% 200%
(Target)
----------------------------------------
CMM $21.0 MM $27.0 MM $32.0 MM
APW Results 0 100% 200%
----------------------------------------
Payout $0 $120,000 $240,000
The business unit financial targets for fiscal 1998 have been established
based upon the business plans submitted by each business unit, current year
Corporate contribution requirements for profitability, and agreed upon
long-term investments.
(1) CMM = Internal Operating Profit - (20% x Monthly Net Assets)
(2) Targeted bonus plan levels for CMM may be modified during the plan
year due to mergers and acquisitions.
(3) Excludes Moxness Industrial
TOOLS AND SUPPLIES MULTI-BUSINESS UNIT LEADERS F 98 BONUS PLAN MEASUREMENTS
F'98 Bonus Measurements:
a) 70% Individual Unit CMM (1) (2)
b) 10% Tools and Supplies CMM (1) (2)
c) 20% APW Financial Results (SVG and EPS)
Boel
0% 100% 200%
(Target)
------------------------------------------
Unit CMM (3) $16.0 MM $20.5 MM $27.0 MM
T&S CMM (3) $16.0 MM $21.5 MM $30.0 MM
APW Results 0 100% 200%
------------------------------------------
Payout $0 $100,000 $200,000
Lecher
0% 100% 200%
(Target)
------------------------------------------
Unit CMM $ 0.0 MM $ 1.3 MM $ 4.0 MM
T&S CMM (3) $16.0 MM $21.5 MM $30.0 MM
APW Results 0 100% 200%
------------------------------------------
Payout $0 $95,000 $190,000
(1) CMM = Internal Operating Profit - (20% x Monthly Net Assets)
(2) Excludes carrying charge related to Asia Pacific/Japan.
(3) Targeted bonus plan levels for CMM may be modified during the plan
year due to mergers and acquisitions.
TECHNICAL ENVIRONMENTS AND ENCLOSURES MULTI-BUSINESS UNITS F'98
BONUS PLAN MEASUREMENTS
The fiscal 1998 bonus plan for Technical Environments and Enclosures
leader will consist of the following:
a) 80% Technical Environments and Enclosures CMM (1) (2) (3)
b) 20% APW Financial Results (SVG and EPS)
Burkart
0% 100% 200%
(Target)
----------------------------------------
CMM $28.0 MM $39.0 MM $43.0 MM
APW Results 0 100% 200%
----------------------------------------
Payout $0 $120,000 $240,000
(1) CMM = Internal Operating Profit - (20% x Monthly Net Assets)
(2) Targeted bonus plan levels for CMM may be modified during the plan
year due to mergers and acquisitions.
(3) Excludes Eder