Document:

mm01-0912_8ke101.htm

Exhibit 10.1

Information Concerning Executive Compensation

It has been the policy of Leucadia National Corporation (the “Company”) since the current management took over in 1978 to emphasize performance based compensation through the payment of discretionary bonuses.

On January 9, 2012, the Company’s Board of Directors, upon the recommendation of the Compensation Committee in consultation with Ian M. Cumming, Chairman of the Board, and Joseph S. Steinberg, President of the Company, approved annual salary increases (effective January 1, 2012) and discretionary 2011 cash bonuses for each of the Company’s executive officers who were included as named executive officers in the Company’s 2011 proxy statement (other than Mr. Cumming and Mr. Steinberg1 ).

	
Name

	
Base Salary in 2012

	
Bonus Award for 20112

	  	  	  
	  	  	  
	
Thomas E. Mara

	
$380,000

	
$  761,130

	  	  	  
	
Joseph A. Orlando

	
$346,000

	
$1,010,140

	  	  	  
	
Justin R. Wheeler

	
$314,000

	
$1,849,180

 

 

____________________________________________ 

1 Consistent with past practice, bonuses for 2011 for Messrs. Cumming and Steinberg will be considered by the Compensation Committee of the Board of Directors at the Board of Directors meeting to be held following the Company’s 2012 annual meeting of shareholders.  

2 Includes an annual holiday bonus paid to all employees based on a percentage of salary of $11,130 for Mr. Mara, $10,140 for Mr. Orlando and $9,180 for Mr. Wheeler.Form 8-K - 01/09/12 Executive Compensation (Ex. 10.1) (W0388121).DOC

Exhibit 10.1

Wausau Paper Corp.

2012 Equity Incentive Compensation Plan

A portion of each individual officer’s grant, referred to below as the “Retention Award,” will vest upon meeting certain criteria relating to continued employment with the Company.  The remaining portion of the grant, referred to below as the “Performance Incentive,” will vest upon meeting both performance and continued employment criteria.  The maximum potential award for the CEO, chief financial officer, and each of the other executive officers with segment operating responsibility is described in the “Total Opportunity” column below.

							
	 
	Performance Units Granted

	 
	Retention

Award*

	Maximum

Performance Incentive**

	Total

Opportunity

	 
	 
	 
	 

	CEO

	19,096

	 
	171,857

	 
	190,953

	 

	 
	 
	 
	 
	 
	 
	 

	Executive Vice President, Finance***

	0

	 
	0

	 
	0

	 

	 
	 
	 
	 
	 
	 
	 

	Senior Vice President, Tissue

	6,593

	 
	50,541

	 
	57,134

	 

	 
	 
	 
	 
	 
	 
	 

	Senior Vice President, Paper

	5,852

	 
	44,865

	 
	50,717

	 

      *The Retention Award is a grant of performance units equal to a specified percentage of base salary, which vests and is converted to a right to receive common stock (or, in the Compensation Committee’s discretion, cash with an equivalent value) based on continuous employment with the Company (in the same position or in a position with greater authority) through January 3, 2014.

   **The Performance Incentive is a grant of performance units equal to a specified percentage of base salary.  These performance units may vest and be converted to a right to receive common stock (or, in the Compensation Committee’s discretion, cash with an equivalent value) based on (1) continuous employment with the Company (in the same position or in a position with greater authority) through January 3, 2014; and (2) the Company’s achieving levels of Return on Capital Employed (“ROCE”) ranging from 5% ROCE to 14% ROCE for the year ended December 31, 2012.  For purposes of this plan, ROCE is determined by adjusting for extraordinary items, which may include, for example, facility closure charges, one-time expenses associated with certain major capital projects, or other similar items.  ROCE is calculated after incentive compensation expenses have been included.  No shares of common stock or cash will be awarded if earnings are at the bottom of the targeted range of ROCE, and the number of shares of common stock or cash awarded will increase on a pro rata basis to the maximum potential award if ROCE is at the top of the targeted range.

***On December 19, 2011, Scott P. Doescher, Executive Vice President, Finance, notified the Company that he intended to resign effective February 28, 2012.  As a result, annual equity incentive awards under the 2012 Equity Incentive Compensation Plan were not issued to Mr. Doescher.Form 8-K - 01/09/12 Executive Compensation (Ex. 10.2) (W0388119).DOC

Exhibit 10.2

Wausau Paper Corp.

2014 Equity Incentive Compensation Plan

Grants of performance units under the 2014 Equity Incentive Compensation Plan will vest upon the Company’s attainment of certain targeted levels of “total shareholder return.”  The calculation of total shareholder return is measured over a three year period (ending December 31, 2014), and is calculated by reference to a “target” and a “maximum” total shareholder return.  If total shareholder return is at the target (7% per year return, or 22.5% over the three-year performance period), grant recipients will receive 50% of the total potential award.  If total shareholder return is at or above the maximum (14% per year, or 45.0% over the three-year performance period), grant recipients will receive 100% of the total potential award.  At total shareholder return levels that are less than the maximum, the award is prorated based on the actual level of total shareholder return that is achieved.  The maximum potential award for the CEO, chief financial officer, and each of the other executive officers with segment operating responsibility, as well as the levels that would be achieved at the target for total shareholder return, is described in the table below.

					
	 
	Performance Units Granted

	 
	Total Opportunity

	 

	 
	(Award at Max. TSR)

	Award at Target TSR

	 
	 
	 

	CEO

	114,572

	 
	57,286

	 

	 
	 
	 
	 
	 

	Executive Vice President, Finance*

	0

	 
	0

	 

	 
	 
	 
	 
	 

	Senior Vice President, Tissue

	28,567

	 
	14,284

	 

	 
	 
	 
	 
	 

	Senior Vice President, Paper

	25,359

	 
	12,680

	 

*On December 19, 2011, Scott P. Doescher, Executive Vice President, Finance, notified the Company that he intended to resign effective February 28, 2012.  As a result, equity incentive awards under the 2014 Equity Incentive Compensation Plan were not issued to Mr. Doescher.

Under the 2014 Equity Incentive Compensation Plan, “total shareholder return” is determined by dividing (1) the sum of (a) the average closing share price for the Company’s common stock over the last 60 trading days of the period immediately prior to the end of the three-year performance period (the “Maturity Date FMV”); and (b) cash dividends paid during the three-year performance period; by (2) the average closing share price for the Company’s common stock over the last 60 trading days preceding the date of grant (the “Grant Date FMV”).  The formula for calculating TSR is as follows:

			
	(Maturity Date FMV + Cash Dividends Paid)

	– 1

	=  Total Shareholder Return

	Grant Date FMV

Total shareholder return is calculated to the closest tenth of a percent, and vested performance units are rounded to the next highest whole unit.Form 8-K - 01/09/12 Executive Compensation (Ex. 10.3) (W0388118).DOC

Exhibit 10.3

Wausau Paper Corp.

2012 Cash Incentive Compensation Plan

For

Executive Officers

Executive officers are entitled to receive cash incentive compensation with respect to each fiscal year based on:

(1)

the level of achievement by the Company of targeted goals for adjusted earnings per share, as derived from targeted return on capital employed; 

(2)

for executive officers with direct segment operating responsibility, achievement of targeted segment operating profit targets; and

(3)

the level of achievement of specified quantifiable bottom-line oriented targets and specific operational or strategic goals, including achievement of targets relating to (a) volume sales growth and product mix, (b) increases in operating efficiencies, (c) objectives for cost reduction or containment, (d) safety incident rates, and (e) cash generation resulting from the liquidation of the Company’s print & color franchise.

The following table sets forth, as a percentage of base salary, the maximum incentive compensation opportunity for the CEO, chief financial officer, and each of the other executive officers with segment operating responsibility.

							
	 
	 
	Segment

	Individual

	 

	 
	Earnings Per Share(1)

	Operating Profits(2)

	Objectives(3)

	Total

	 
	 
	 
	Targeted

	 
	 
	 

	 
	Targeted

	Max.

	Range of

	Max.

	Max.

	Max.

	 
	Range of

	% of

	Operating

	% of

	% of

	% of

	 
	EPS

	Salary

	Profits

	Salary

	Salary

	Salary

	 
	 
	 
	 
	 
	 
	 

	CEO

	$.25–$.80

	120%

	–

	–

	30%

	150%

	 
	 
	 
	 
	 
	 
	 

	Executive Vice President–Finance(4)

	N/A

	N/A

	–

	–

	N/A

	N/A

	 
	 
	 
	 
	 
	 
	 

	Senior Vice President, Tissue

	$.25–$.80

	25%

	$ 30–55 M

	50%

	25%

	100%

	 
	 
	 
	 
	 
	 
	 

	Senior Vice President, Paper

	$.25–$.80

	25%

	$ 10–33 M

	50%

	25%

	100%

(1) For purposes of this plan, “earnings per share” means earnings per share as reported in the Company’s audited financial statements, adjusted for extraordinary items (which may include, for example, facility closure charges, one-time expenses associated with certain major capital projects, or other similar items) as determined in the discretion of the Compensation Committee.  Incentive bonuses will be 0% of base salary if earnings are at the bottom of the targeted range of earnings per share and will increase on a pro rata basis to the officer’s maximum of percentage of base salary at the top of the targeted range.  

(2) For purposes of this plan, “operating profits” means the segment operating profits as reported in connection with the Company’s audited financial statements adjusted for other extraordinary items (which may include, for example, 

-1-

facility closure charges, one-time expenses associated with certain major capital projects, or other similar items) as determined in the discretion of the Compensation Committee.  Incentive bonuses are 0% of base salary if operating profits are at the bottom of the targeted range for the officer’s respective operating segment’s targeted operating profit and increase on a pro rata basis to the officer’s maximum percentage of base salary at the top of the targeted range.

(3) Individual performance objectives are approved at the beginning of the year by the Compensation Committee.

(4) On December 19, 2011, Scott P. Doescher, Executive Vice President, Finance, notified the Company that he intended to resign effective February 28, 2012.  As a result, Mr. Doescher is not participating in the 2012 Cash Incentive Compensation Plan for Executive Officers.

-2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}]]