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10.23
    
    Alcan Supplemental Short Term Incentive Plan, dated 11 February 2006.
 
 
 2006 Supplemental Short Term
Incentive Plan (SSTIP)




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INTRODUCTION
    
    
    2GOVERNANCE
    
    
    2ELIGIBILITY AND OBJECTIVE SETTING
    
    
    2AWARDS AND PAYOUT
    
    
    3FINANCING
    
    
    4APPENDIX A  ROLE OF STEERING COMMITTEE
    
    
    5APPENDIX B  PERFORMANCE AND REWARD
    
    
    5
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INTRODUCTION
   GOVERNANCE
   ELIGIBILITY
   2




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Objective Setting and Measurement Process
   Awards
    SSTIP ObjectivesMeasurable
    
    10% of
    
    Achievement of Individual Objectives *Objective
    
    Base Salary
    
    50%
    
    100%
    
    150%Team SG&A Objective
    
    5% of Base
    
    Evaluation based upon individual contribution to group SG&A objectiveIndividual Objectives
    
    5% of Base
    
    Payout based upon
evidence of real
progress and
contribution but
falling short of
objective*
    
    Normative payout
based upon target
achievement and
time line
    
    Payout based upon
exceptional
achievement
significantly in
excess of original
goals
 
 *
    
    Individual awards will be paid at 50%, 100% or 150% consistent for threshold level of
achievement 3




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EXAMPLE
  
    
    Base Salary $200,000
    
    SSTIP Objective 10% of base
 AchievementSSTIP
    
    Attribution of
    
    Against
    
    PayoutObjective
    
    10% Objective
    
    Objective
    
    Calculation
    
    AwardGroup
    
    50%
    
    100%
    
    $200,000
    
    $10,000x10%x50%x100%(1)Individual #1
    
    25%
    
    50%
    
    $200,000
    
    $2,500x10%x25%x50%(2)Individual #2
    
    25%
    
    150%
    
    $200,000
    
    $7,500x10%x25%x150%(3)
 
 (1)
    
    Achievement against group objective was at plan and therefore target payout is
payable(2)
    
    Achievement against objective #1 was at 50% and therefore minimum amount is payable(3)
    
    Achievement against objective #2 was at 150% and therefore maximum amount is payable Financing
 The plan will be financed from a pool of up to a maximum of US$4.5M which
approximates 15% of base salaries of all eligible executives. Expected payouts at
target would equal $3.0M or 10% of base salaries.
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Appendix A  Role of Steering Committee
 1.
    
    The Committee will:
 a.
    
    approve individual objectives and confirm
metrics and goalsb.
    
    monitor performance and approve any
mid-year adjustments to objectivesc.
    
    monitor group performance against stretch
budgetsd.
    
    review and approve results prior to final
approval by HRCe.
    
    authorize payment
 2.
    
    The Committee will assess performance against objectives 
not on their actual impact on share price
 Appendix B  Performance and Reward
 Compensation Element
    
    Expectation
    
    CommentsBase Salary
    
    Overall performance
and ongoing personal
contribution
    
    Subject to
competitive practice
and potentialEPA
    
    EVA/EHS Performance
ofBG or Alcan Inc
    
    EVA/EHS metrics with
discretionary adjustment for exceptional individual performanceSSTIP
    
    SG&A and specific
individual objectives
    
    Individual Performance against
selected objectives
 5