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                                  EXHIBIT 10.1

                          PERFORMANCE RECOGNITION PLAN
                          ----------------------------

                                       OF

                       THE GOODYEAR TIRE & RUBBER COMPANY
                       ----------------------------------

                           Effective January 1, 2000

                        (hereinafter called the "Plan")




I.    PURPOSE AND POLICY

         It is the declared policy of the Board of Directors of The Goodyear
Tire & Rubber Company, in order to provide incentive for extra effort, that key
personnel of the Company shall be compensated in addition to their fixed
compensation by participation in a performance recognition plan. Such key
personnel shall be selected, as hereinafter provided, from the elected officers
and other key employees of the Company.

         The Plan is designed to reinforce Participant effort and responsibility
towards achieving the total Company business objectives, the objectives of
specific business units and objectives established for individual Participants.
Awards to Participants provided under this Plan will vary to the extent these
goals and objectives are attained. The basic intent is to tie Awards directly to
results that reflect Company growth and success achieved through customer
satisfaction, quality products and enhanced shareholder value.

         The Plan shall be subject to discontinuance, or amendment by the Board
of Directors, at any time.

II.   DEFINITIONS

         For purposes of the Plan, the following terms shall have the following
meanings:

         A) Award. Cash payments approved by the Committee and made pursuant to
the objectives established pursuant to the Plan in respect of any Plan Year.

         B) Company. The Goodyear Tire & Rubber Company or any of its
subsidiaries and affiliates.

         C) Participant. With respect to any Plan Year, a salaried employee of
the Company who has been selected by the Committee to receive an Award under the
Plan for such Plan Year subject to the attainment of the established goals and
objectives.

         D) Plan Year. Each period of one year beginning January 1 and ending
December 31, commencing January 1, 2000.

         E) Retirement. Termination of employment at any age with 30 or more
years of continuous service with the Company and its subsidiaries or at age 55
or older with at least 10 years of continuous service with the Company and its
subsidiaries.

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III.  THE COMMITTEE

         The Plan shall be administered by a Committee, the "Committee", to be
comprised of each member of the Compensation Committee of the Board of Directors
of the Company, as such Committee is constituted from time to time, that is
neither an employee or an officer of the Company and is not participating, and
has not and will not participate, in the Plan. Action by the Committee pursuant
to any provision of the Plan may be taken at any meeting held upon not less than
five days' notice of its time, place and purpose given to each member, at which
meeting a quorum of not less than four members is present. If less than a
majority of the whole Committee is present, such action must be by the unanimous
vote of those present, otherwise by a majority vote. The minutes of such meeting
(signed by its secretary) evidencing such action, shall constitute authority for
Goodyear to proceed in accordance therewith.

IV.   TARGET BONUS

         Each Participant in a Plan Year is granted a target bonus with respect
to such Plan Year which is subject to adjustment between zero percent and such
amount as the Committee may determine, depending upon the extent to which the
business goal or goals established for the Participant for such Plan Year are
achieved.

V.    SELECTION OF PARTICIPANTS

         A) With respect to each Plan Year, after consultation with the Chief
Executive Officer of the Company (or, if he be unavailable, with the next
ranking officer of the Company who may be available), the Committee shall
determine the Participants and establish their respective target bonuses for
such Plan Year. The Committee shall also review and approve the goals
established for the Participants for such Plan Year. As to such determination,
the Committee may rely, to the extent it deems available, upon any information
and recommendations obtained from the officer so consulted. As soon as
practicable after the selection of Participants for a Plan Year, the Company
shall notify them of their participation and target bonuses for such Plan Year.

         B) A list, certified by the Committee (or by the officers as to action
pursuant to subparagraph A above), shall evidence the determination of those
persons who are Participants in the Plan for such Plan Year and their respective
target bonuses and goals therein.

         C) With respect to employees who are not officers of Goodyear, the
Chairman of the Board of the Company may add such employees as Participants in
the Plan during a Plan Year and report such additional Participants to the
Committee from time to time.

         D) The Chairman of the Board of the Company may, at his discretion,
terminate the participation of any associate in the Plan at any time and may
reduce or eliminate the target bonus granted to any associate for any Plan Year
at any time prior to the payment of an Award in respect of such grant.

VI.   PAYMENT

         The Committee, at its sole discretion, shall determine if a payment
shall be made to Participants in respect of any Plan Year notwithstanding the
fact that the established goals and objectives may have been achieved. If the
Committee determines that there will be a payment in respect of a Plan Year,
payment of Awards due Participants with respect to the Plan will be made after
the close of such Plan Year once the achievement of the performance goals have
been determined. All Awards are contingent upon the achievement of the stated
performance goals for the Plan Year and a determination by the Committee that a
payment shall be distributed to


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Participants in respect of such Plan Year. All Awards shall be in cash. There
shall be deducted from each Award under the Plan the amount of any tax required
by governmental authority to be withheld and paid over by the Company to such
government for the account of a Participant entitled to an Award.

VII.  CHANGE IN PARTICIPANT'S STATUS

         A) Any Participant who is not an employee of the Company on December 31
of a Plan Year forfeits his or her participation for such Plan Year unless
employment termination was due to the employee's death or Retirement.

         B) Any Participant whose employment terminates due to Retirement shall
be entitled only to a pro rata portion of the target bonus for the Plan Year
during which the associate's last day worked occurred, subject to the adjustment
as provided herein. Such pro rata bonus is calculated by multiplying the
percentage of days actually worked of the year (ie, number of days worked
divided by 365) by the target bonus. Notwithstanding the above, a Participant
who, after Retirement, enters into a relationship either as an employee,
consultant, agent or in any manner whatsoever with an entity that sells products
in competition with products sold by the Company and its subsidiaries, forfeits
the right to receive a distribution under this Plan in respect of such Plan
Year. In the event such Participant enters into such a relationship with a
competitor within six months from a distribution under this Plan during such
Plan Year, the Participant agrees to refund to The Goodyear Tire & Rubber
Company any such distribution the Participant had received.

         C) Any Participant whose employment status changes during a Plan Year
due to layoff, leave of absence or disability shall be entitled only to a pro
rata portion of the target bonus, subject to the adjustment as provided for in
Section IV hereof. Such pro rata bonus is calculated by multiplying the
percentage of days actually worked during the Plan Year (ie, number of days
worked divided by 365) by the target bonus for such Plan Year.

         D) A Participant whose employment terminates during a Plan Year due to
death shall be entitled only to a pro rata portion of a target bonus for such
Plan Year and the target bonus shall not be adjusted under Section IV hereof.
Such pro rata bonus is based on days actually worked during such Plan Year and
calculated in the same manner as if the Participant had retired and distribution
of the bonus shall be made to the participating employee's executors,
administrators, or such other person or persons as shall, by specific bequest
under the last will and testament of the participating employee, be entitled
thereto.

VIII. MISCELLANEOUS CONDITIONS

         The Plan and all participation therein shall be subject to the
following conditions:

          A) For all purposes of the Plan, termination of a Participant's
employment shall be deemed to have occurred whenever he or she is no longer
employed by the Company.

         B) Nothing in the Plan shall obligate the Company with respect to
tenure of office or duration of employment of any Participant or to provide for
or continue participation in the Plan by any Participant in the Plan for any
Plan Year in respect of any subsequent Plan Year.

         C) All right, title and interest in the Plan shall be personal to the
Participant and not subject to voluntary or involuntary alienation,
hypothecation, assignment or transfer, except that participation is subject to
forfeiture as provided in Section VII hereof.


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         D) The Committee shall have power finally to interpret any of the
provisions of the Plan and to lay down any regulations not inconsistent herewith
for its administration.

         E) Nothing in the Plan shall prevent or interfere with any
recapitalization or reorganization of the Company or its merger or consolidation
with any corporation. In any such case, the recapitalized, reorganized, merged,
or consolidated Company shall assume the obligations of the Company under the
Plan or such modification hereof as, in the judgment of the Board of Directors,
shall be necessary to adapt it to the changed situation and shall provide
substantially equivalent benefits to the Participants.

         F) The Company may terminate, suspend, amend, modify or otherwise act
in respect of the Plan at any time and from time to time.


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