Document:

EX-10.1

 

Exhibit 10.1

Management Team

2007

Performance Incentive Plan Summary

 

 

	1.	 	Introduction

Congratulations on being designated a participant in the Performance Incentive Plan (“PIP,” or
the “Plan”), Henry Schein’s incentive-based cash compensation program for its management team.
Plan participants include the entire management team of directors and vice presidents. The Plan
has been designed to align all participants in a concerted effort to drive our business toward
achieving common objectives that benefit the Company as a whole, the management team and each
participant. The Plan is specifically designed to:

	 	•	 	Provide each participating management team member (“Participant”) with an
annual cash bonus opportunity;
	 
	 	•	 	Foster achievement of specific corporate, business unit and individual
performance goals (“Goals”);
	 
	 	•	 	Recognize and reward Participants for individual and group
team achievements.

The PIP cash bonus award, in conjunction with a Participant’s base compensation, is intended to
provide Participants with competitive total annual cash compensation for comparable positions at
companies in our industry and at other organizations of our size.

This program was reviewed and approved by the Compensation Committee of the Board of Directors.

The Compensation Committee or the Chief Executive Officer (the “CEO”) (solely with respect to
Participants other than executive officers) has the authority to adopt, alter and repeal such
administrative rules, guidelines and practices governing the PIP and to construe and interpret the
terms and provisions of the PIP and any award issued under the PIP.

Any decision, interpretation or other action made or taken in good faith by or at the direction of
the Compensation Committee or the CEO (solely with respect to Participants other than executive
officers) will be final, binding and conclusive on Henry Schein and all Participants and their
respective heirs, executors, administrators, successors and assigns.

The Compensation Committee may, in its sole discretion, delegate any of its responsibilities under
the PIP with respect to the implementation of the Plan (including administrative tasks).

	2.	 	Eligibility

The CEO annually determines eligibility for participation in the Plan. Participation is
intended to be ongoing. However, changes in assignments may result in a Participant’s being
ineligible to participate in the Plan. Team Schein Members will be notified at the beginning of
each year regarding their eligibility to participate in the Plan.

	3.	 	PIP Awards

PIP awards are based on:

	 	•	 	The Company’s annual profitability, specifically measured against earnings per
share (“EPS”), net income or other predetermined profitability Goals;
	 
	 	•	 	The participant’s business unit or functional area’s level of achievement in
financial and other performance goals;
	 
	 	•	 	The participant’s achievement of his or her individual MBO goals .

2

 

	4.	 	Individual Performance Goals

A Participant’s individual performance Goals are classified into three categories:

	 	•	 	Company financial performance
	 
	 	•	 	Functional area financial performance
	 
	 	•	 	MBO performance

The Company Financial Performance Goals are based on annual earnings per share (EPS) achievement.
The Functional Financial Performance Goal and the MBO Performance Goal evaluation and analysis are
conducted annually, unless otherwise specified. The PIP award payouts corresponding to levels of
achievement of Company Financial Performance Goals are set forth on Exhibit A. The PIP award
payouts for meeting or exceeding Functional Area Financial Goals and each Participant’s
individualized MBO Performance Goals are set forth on Exhibits B and C, respectively.

Each Participant’s Goals will be determined at the start of each year by their Manager and then
reviewed, as applicable, by the Executive Management Committee (EMC) Member, CEO or the
Compensation Committee. There will be an ongoing review of these goals. Any changes during the
year must be approved by the Manager and, if appropriate, by the CEO. Each Participant and his or
her Manager are encouraged to have performance evaluations during the year to monitor progress and,
if necessary, to modify Goals (with the approval of the CEO and/or the Compensation Committee, if
appropriate) for the balance of the year.

The following table illustrates performance Goals for different types of management positions:

Performance Goals Based on Position
and Role

	 	 	 	 	 	 	 
	 	 	Range of Performance Goal Categories
	 	 	Functional	 	Company	 	 
	 	 	Financial	 	Financial	 	 
	Management Segment	 	Performance	 	Performance	 	MBO Performance
	Corporate
Management Participants
(e.g. Finance, Supply Chain TSM’s, etc)

	 	10% — 40%
	 	15% — 40%
	 	30% — 50%
	Major Business
Unit Participants
(e.g. Dental Group, Medical Group,
Veterinary Group TSM’s, etc.)

	 	55% — 65%
	 	15% — 35%
	 	10% — 25%
	Supporting Corporate Function
Participants (e.g. Legal Department,
Human Resources Department TSM’s, etc.)

	 	10% — 20%
	 	15% — 35%
	 	40% — 60%

Note: This schedule is intended to provide guidelines for development of a specific
performance plan for each Participant. Final weighting of performance Goals for each
Participant will be determined by the Participant’s Manager and, if appropriate, approved by
the CEO and/or the Compensation Committee.

3

 

	5.	 	Company Financial Performance Goals

The Company and EPS Goal’s included on Exhibit A are determined by the Compensation Committee
with input from the Executive Management team. The Compensation Committee will make adjustments to
the 2007 EPS goal for acquisitions based on information provided to them by the Executive
Management team. Changes to the goal will be provided to the participants.

See Exhibit A for PIP award payouts for achieving Company Financial Performance Goals.

	6.	 	Functional Area Financial Performance Goals

For Participants managing areas that impact a P&L, these Goals are based on the
business unit’s financial performance measured against annual financial budgets, in the following
areas:

	 	•	 	Group/Divisional gross profit goals.
	 
	 	•	 	Group/Divisional contribution dollars.
	 
	 	•	 	Group/Divisional Pre-Tax income after “service charges.”
	 
	 	•	 	Group/Divisional net income Goals.
	 
	 	•	 	Pre-Tax Income of operating subsidiaries — sales, gross profit and operating income Goals.

For Participants with infrastructure or supporting responsibilities, these Goals are based
on expense performance relative to the budget.

See Exhibit B for PIP award payouts for achieving levels of the Functional Area Financial Goals.

	7.	 	MBO Performance Goals

Specific, measurable MBO Performance Goals will be developed for each Participant. These MBO
Performance Goals should drive toward and support five enterprise-wide initiatives: Profitability;
Process Excellence; Customer Satisfaction, Strategic Planning, and Organizational Development. To
drive performance and to focus management energy, it is recommended that the number of MBO’s be
limited to five to nine critical objectives.

	§	 	Profitability — e.g., reduce expenses as a percent of sales; increase gross profit
percentage and gross profit dollars; increase business unit sales; reduce inventory.
	 
	§	 	Process Excellence — e.g., implement a new policy; reduce errors to customers; reduce
DSO’s; increase inventory turns.
	 
	§	 	Customer Satisfaction — e.g., increase frequency of salesperson to customer contacts;
implement project to develop computer screens to aid in positive customer interactions;
support internal customer by completing all recruits within a reasonable predetermined time
period; develop customer feedback program, such as surveys and focus groups.
	 
	§	 	Strategic Planning — e.g., develop strategic plan based on individual
responsibilities; benchmark Participant’s unit against similar
companies’ functions.
	 
	§	 	Organizational Development — e.g. personal business development,
succession planning, diversity goals, staff development, recruitment
goals.

See Exhibit C for PIP award payouts for achieving and exceeding MBO Performance Goals.

4

 

	8.	 	Acquisitions, New Business Ventures and Other Adjustments

Functional Financial and MBO goals, if applicable, will be adjusted for acquisitions and new
business ventures that were not initially considered when developing the original Company target.
The Compensation Committee will adjust the Company Financial Performance Goal for unbudgeted
acquisitions by an amount equal to a reasonable estimate of the expected accretion or dilution. In
the event the Compensation Committee adjusts the Company Financial Performance Goal for unbudgeted
acquisitions in accordance with the preceding sentence, the PIP award payouts set forth on Exhibit
A will correspond to the levels of achievement of the adjusted Company Financial Goal.

Adjustments may also be made to the Company Financial Performance Goals in the discretion of the
Compensation Committee for items resulting from, for example, unforeseeable events or other facts
and circumstances beyond the control of the Company. Notwithstanding anything to the contrary, all
items of gain, loss or expense as presented to the Compensation Committee for, or during, the
applicable fiscal year, that are related to the following items will not be considered in the
calculation of Company Financial Performance Goals:

(i) (a) the disposal of a business or discontinued operations; (b) capital transactions undertaken
by the Company during the fiscal year; or (c) the Company’s repurchase of any class of its
securities during the fiscal year; or (d) unbudgeted changes in accounting principles or to
changes in applicable law or regulations.

The acquisition budget will be used for adjusting Functional Financial and MBO Goals, if
applicable.

	9.	 	Plan Awards

During the first fiscal quarter of each year, individual performance for the previous year is
evaluated relative to Goals. PIP awards are determined for each performance category, as
applicable. A Participant’s total Plan award will equal the sum of the awards earned in each
category for the previous year’s performance.

Notwithstanding anything herein to the contrary, the Compensation Committee or the CEO (solely with
respect to Participants other than executive officers) may, at any time, provide that all or a
portion of a PIP award is payable: (i) upon the attainment of any goal (including the Goals), as
determined by the Compensation Committee or the CEO, as applicable; or (ii) regardless of whether
the applicable goals are attained, as determined by the Compensation Committee or the CEO (solely
with respect to Participants other than executive officers) in their sole discretion.

In order to receive any PIP award, Participants must be actively employed on March 15 of the year
the Plan award is to be paid out. A prorated Plan award may be available, at the discretion of the
CEO, if a Participant in the Plan dies, becomes permanently disabled, retires at the normal
retirement age during the Plan year, or in other special circumstances.

PIP awards, less applicable withholdings, will generally be made by the end of the first fiscal
quarter of each year.

This Plan is not intended to, nor does it constitute, a contract or guarantee of continued
employment. The Company reserves the right to change or terminate the Plan at any time without
notice.

5exv10w07

 

Exhibit 10.07

OCEANEERING INTERNATIONAL, INC. 2007 ANNUAL CASH BONUS AWARD PROGRAM

On March 8, 2007, the Compensation Committee of the Board of Directors (the “Compensation
Committee”) of Oceaneering International, Inc. (the “Company) approved the 2007 Annual Cash Bonus
Award Programs (a) for Executive Officers of the Company and (b) for all other participating
employees, each under the 2005 Incentive Plan of the Company. In the case of Executive Officers,
cash bonuses are based on the level of achievement of net income for the Company in 2007 (“Net
Income”) as compared to planned results approved by the Compensation Committee (100% of award). In
the case of all other participating employees: (a) with respect to corporate employee participants,
cash bonuses are based upon level of achievement as compared to planned results of: (i) Net Income
(70% of award) and (ii) Individual Goals (30% of award), (b) with respect to profit center
executives, cash bonuses are based on the level of achievement as compared to planned results of:
(i) Net Income (50% of award), and (ii) goals of the executive’s profit center (50% of award),
which profit center percentage amount is comprised of the level of achievement as compared to
planned results of the following: operating income of the profit center (50%), HSE goals (20%), and
objectives for the profit center (30%), and (c) for all other participating employees, based upon
the level of achievement as compared to planned results of: (i) Net Income (20% of award), (ii)
goals of the participant’s profit center (50%, which is comprised of the same elements as for
profit center executives), and (iii) Individual Goals (30%). The Compensation Committee has
discretion to award a lower amount under the program than that amount which is otherwise determined
under the terms of the program.

For each participant under each of these programs, the maximum cash award achievable is a
percentage approved by the Compensation Committee of the participant’s annual base salary as of
March 1, 2007. For Executive Officers, that percentage ranges from 50%-150%. A participant must
be employed by the Company or a subsidiary at the time the cash awards are approved for payment by
the Compensation Committee to receive a cash award. Payment of any cash awards under the program
shall be made no later than March 15, 2008.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]