<PAGE>   1
                                                                 Exhibit 10.9



                            WEIRTON STEEL CORPORATION


                       AMENDED PERFORMANCE INCENTIVE PLAN
                        FOR THE PERIOD 1996 THROUGH 1998







<PAGE>   2



INTRODUCTION

This document constitutes the Amended Performance Incentive Plan (the "Amended
PIP") and is effective for the three-year period 1996 through 1998. The Amended
PIP is designed to align with the strategic goals of Weirton Steel Corporation
(the "Company") over such three-year period.

PARTICIPATION

Participation is limited to individuals considered to have the opportunity to
affect the financial results of the Company. These individuals will be
identified by the Company's Chief Executive Officer and confirmed by the
Company's Management Development and Compensation Committee (the "Compensation
Committee"). The identification is expected to be made at the beginning of the
three-year period 1996 through 1998 (the "Performance Cycle"). Upon the
recommendation of the Chief Executive Officer, the Compensation Committee also
may admit individuals or classes of individuals as participants as of the
beginning of any of the other two years in the Performance Cycle.

If an individual is hired into a position that should be included in the Amended
PIP after the Performance Cycle has already started, the Chief Executive Officer
will determine the level of that individual's participation in the Amended PIP.
This determination will be made as soon as practicable after the individual is
hired.

Participation in the Amended PIP does not confer any rights to continue in the
employ of the Company.

ANNUAL AND MULTI-YEAR AWARD COMPONENTS

The total incentive opportunity for each participant will be separated into
annual and multi-year components. Participants will have the opportunity to earn
one-third of their target award on an annual basis. The remaining two-thirds
will be earned based on predetermined financial objectives at the end of the
Performance Cycle.

PERFORMANCE GOALS

The ANNUAL PERFORMANCE GOALS will be established each year and will include:
safety, delivery and/or customer satisfaction standards (or other similar
areas). If performance meets the established standards, participants will
receive a payout -- threshold and maximum opportunities will not apply.


The MULTI-YEAR PERFORMANCE GOAL will be operating income improvement over the
Performance Cycle. The base period for computing the incentive is the fourth
quarter

                                        1

<PAGE>   3



1995 compared to the first quarter 1999. Threshold, target and maximum levels of
operating income improvement and related incentive award opportunities have been
established for the Performance Cycle.

PERFORMANCE MEASUREMENT

ANNUAL COMPONENT

o    Awards related to the annual component will be tied to pre-established
     standards in the areas of safety, delivery and/or customer satisfaction (or
     other similar areas). These standards will be approved by the Compensation
     Committee each year.

     -- Each annual goal will be assigned a relative weight (the total being
        100%).

     --  If the standard is met or exceeded, the award related to that goal will
         be earned in full.

     --  If the standard is not fully met, no award will be earned relative to
         that particular goal.

o    If a particular position does not have an opportunity to affect safety,
     delivery, or customer satisfaction, other measurable annual performance
     goals will be established by the participant's manager in consultation with
     the Chief Executive Officer.

MULTI-YEAR COMPONENT

o    The multi-year component of the total award opportunity over the
     Performance Cycle will be aligned with specific operating income
     improvement levels, as follows:

     --  No awards will be earned if cumulative operating income improvement is
         less than $100 million.

     --  Threshold awards will be earned if cumulative operating income
         improvement equals $100 million.

     --  Target awards will be earned at $150 million.

     --  Maximum awards will be earned at $200 million. .

o    Improvement in operating income is expected to result primarily from:

     --  Controlling the cost per ton by product line; and

                                       2
<PAGE>   4

     --  Improving the mix of products sold -- by selling more of the higher
         profitability products.

     OPERATING INCOME will be calculated before profit sharing plus (minus)
     income (loss) from joint ventures or minority interests.

     OPERATING INCOME for purposes of the Amended PIP is defined as operating
     income as determined in accordance with generally accepted accounting
     principles and disclosed in the Company's quarterly reports on Form 10-Q or
     annual reports on Form 10-K, adjusted to exclude the effects of
     extraordinary, unusual, unanticipated, or other nonrecurring events,
     including but not limited to, the following:

     --  Business interruption insurance recoveries to the extent that such
         recoveries are related to prior reporting periods (e.g., Second Quarter
         1995 Reversing Rougher insurance recovery);

     --  Restructuring charges to the extent that the benefit of such charges
         will be realized in future periods (e.g., Second Quarter 1996 manpower
         reduction restructuring charge);

     --  Required adoption of any new accounting pronouncements since the first
         quarter of 1996, to the extent they have an impact on operating income
         for the period (e.g., similar to ongoing FAS 106 post retirement health
         care charges);

     --  Any other unusual or nonrecurring events(s) that would require
         disclosure in any of the Company's Exchange Act filings, whether 10-K,
         10-Q or 8-K. For example:

         o    material unplanned/unscheduled outages (e.g., Second Quarter 1996
              No. 3 Blast Furnace outage);

         o    resolution of prior period items significantly in excess of
              amounts accrued, such as environmental and legal matters (e.g.,
              potential final settlement of costs associated with EPA
              multi-media enforcement action);or

         o    significant write downs of intangible assets or adjustments to the
              carrying value of fixed assets.

     --  Other events as subsequently defined by action of the Compensation
         Committee.

         OPERATING INCOME will be adjusted by adding or subtracting changes in
         selling price. This adjustment is determined by multiplying the
         difference between the current quarter pricing and the base period
         pricing by the volume in the base period for each major product
         category.


                                       3
<PAGE>   5

o    Award levels will be interpolated for results falling between $100
     million(threshold) and $200 million(maximum).

MEASUREMENT PERIOD

For the annual component of the plan the measurement period will be each
calendar year. The measurement period for the multi-year component will be a
benchmark quarter immediately preceding the beginning of the Performance Cycle
as compared to a benchmark quarter immediately following the end of the
Performance Cycle.

AWARD PAYOUTS

o    Awards earned under the annual component will be paid to participants
     annually, and as soon as practical after verification by the Company's
     independent auditors of the results for that calendar year. Participants
     must be employed with the Company for the full calendar year to receive
     payment under the annual component.

o    Awards earned under the multi-year component will be paid to participants
     after the end of the Performance Cycle, and as soon as practical after
     verification of results for the Performance Cycle. If a participant
     voluntarily terminates or is involuntarily terminated for just cause prior
     to the end of the Performance Cycle, the multi-year payout is forfeited. If
     a participant is involuntarily terminated without just cause, retires,
     dies, or becomes disabled, a pro-rata payment may be awarded at the
     discretion of the Compensation Committee.

o    Awards may be settled in cash and/or shares of the Company's Common Stock
     in the discretion of the Compensation Committee. Settlement of awards in
     stock will be subject to the availability of shares at the time.

DEFERRAL AND FORFEITURE OF PAYOUTS

o    Payment of an award (annual and/or multi-year) may not be made in any year
     in which benefits are not paid from the Company's Profit Sharing Plan (the
     "Profit Plan") and shall be deferred to the first subsequent year in which
     Profit Plan payments are made. During the deferral period, interest shall
     be credited on the unpaid amount of an award at the one year LIBOR rate
     plus 1.5%, such interest to be paid if, and at such time as, an award is
     paid.

o    Any awards (annual and/or multi-year) which have not been paid as a result
     of deferral, together with any interest accrued thereon, will be forfeited
     if no benefits under the Profit Sharing Plan are earned  by the year 2001.

                                        4