Every evening, Wilmington daily commercial., 1918-02-25
DU POINT BONUS PLAN
Continued from Ihse l


TO the stockholders:
We beg 10 call your attention to
the following documents enclosed
herewith:
l. Notice OF the Annual Meeting
or the stockholders, 10 be held March
IL, 1915.
.. Proposed amendment TO the
Company's Bylaws referred TO in
paragraph ; of said notice.
3. Copy of the Company's Bonus
Plan as amended October %. 1916,
and now in force.
= Proxy for the stockholders
meeting.
Particular attention is invited to
the proposed new bylaw and to the
paragrap phs numbered 3. and . in
the Secretary's notice of the annual
meeting.
The Directors have thought it best
90 submit the matters referred TO in
said three paragraphs for the con-
sideration and determination OF the
stockholders for the reason that. al
though the Company's Bonus Plan
was inherited from Il. l. DUPONT de
Nemours Powder Company (herein-
after referred to as the "old" COM
1dfA > anu WIS stubpAt' ~
Company as early as 1905. and was
in force from the time of its adop-
tion down to the time said Company
ceased business on October I. 1915,
all with the knowledge and ac-
Quiescence OF the Company's stock
holders. certain stockholders OF the
present company. who were stock
holders of the old Company,
including Alfred I. DUPONT and
Francis I. DUPONT, who from
the time of the organization of both
Companies until March, 1915, were
Directors Of both Companies. have
now challenged the Bonus Plan In
tho courts, demanding that the
Directors be required to pay back
into the treasury OF the Company out
Of their own pockets all distribu-
tions made Hereunder since the
present Company was formed. More
over. the time has arrived for MAX
ing the 1917 distributions under the
Bonus Plan, and the directors feel
that before proceeding. further with
its execution they should know
whether II still has the approval Of
the stockholders. and. II not. what
changes they desire made therein.
The giving Of extra compensation
G e. bonus) as recognition of and
encouragement for unusual effort is a
form Of compensation that has been
tried successfully by other com
panies II is impossible TO accurately
grade salaries as the value of SER
vicc is measured by work performed
not by position occupied. Nearly
al mon have opportunity of per-
formance greater than that OF merely
filing given position satisfactorily.
The original Bonus Plan was con-
sldered by the Executive Committee
And Whereas. il is thought that
thcse purposes can be best ac-
Complished by setting aside n por-
ton Of the net earnings OF tho Com
pany each year for the purchase Of
a portion OF its common stock. 10 be
presented to such employees under
the conditions hereinafter mem
toned"
The plan provided that the amount
OF bonus TO he Eivc.i 10 any employee
should be recommended by the head
" the department in which he was
employed and by the Finance Com
nittce and approved by the Exec
utive Committee: that no member OF
the Executive Committee should in
any event be entitled to any bonus:
that the bonus paid should be suffi-
cicntiy large 10 make il an incentive
10 the employee Z obtain II, and
should not he less than ten shares OF
stock. and that all bonuses should be
paid in common stock.
and the Board OF Directors Of the
old Company for more than a year
before its adoption in February.
1905. Its purpose was explained in
is preamble. which reads as follows:
Whereas. IL Is the desire Of this
Company 70 recognize the exceptional
merit Of IS employees. and likewise
= encourage such employees 70 fur
Their efforts in is behalf:
This plan was revised and amend
ed from timc 70 time during the
operations Of the old Company The
more important changes were a.
follows:
,a) on June 4, 1906. a question
arose u the Board of Directors as tc
Tic meaning OF tho term exceptional
lacrlt. whereupon il was resolved
;ha. bonuses should be allowed for
the ENCOURAGEMENT OF employees who
contribute either by invention. unusual
ability. industry or loyalty. or in any
other marked way 10 the general good
81 the Company, and whom il would
he desirable TO have enterested in IN,
business
,bp on November "a. 1909. the
plan was amended so as 10 confer
upon the Executive Committee the