Summary
Dover Corporation (DOV) filed an 8-K on February 16, 2005, detailing executive compensation plans for 2005. The Compensation Committee of the Board of Directors has set performance goals and identified participants for the 2005 Executive Officer Annual Incentive Plan. This plan allows for cash bonuses to be awarded based on specific objective financial performance criteria, including earnings per share for the CEO and CFO, and operational earnings for segment presidents. The report also notes that participants in the 2004 plan will receive incentives within established parameters, which will be disclosed in the upcoming proxy statement.
Key Highlights
- 1Dover Corp established performance goals and identified participants for its 2005 Executive Officer Annual Incentive Plan.
- 2Annual cash incentives will be based on objective financial performance criteria.
- 3CEO and CFO performance goals are tied to specified company earnings per share.
- 4Segment Presidents' performance goals are linked to their respective segment's operational earnings.
- 5Incentive payments will be zero if performance is below 50% of the goal and capped at twice the target.
- 6The company's 2005 Equity and Cash Incentive Plan, approved by shareholders in April 2004, became effective February 1, 2005, replacing previous plans.
- 7Exhibit 10.1 provides the form of stock option and cash performance program award agreement for executive officers under the 2005 Plan.
Frequently Asked Questions
This 8-K filing announces the specifics of Dover Corporation's executive compensation plans for 2005, including the establishment of performance goals and participants for the annual incentive plan.
Bonuses will be determined based on objective financial performance criteria. The CEO and CFO's bonuses are linked to the company's earnings per share, while segment presidents' bonuses are tied to their segment's operational earnings.
Yes, the annual incentive payment will be zero if actual performance is less than 50% of the established goal. Additionally, the incentive payment cannot exceed twice the targeted annual incentive amount.
The 2005 Equity and Cash Incentive Plan is a new plan, effective February 1, 2005, which was approved by shareholders and replaces Dover's previous stock option and cash performance programs that expired in January 2005. The filing includes the form of award agreement for this plan.