8-KMaterial Agreements

EMCOR Group, Inc. 8-K Report, Material Agreement (Apr 3, 2006)

Filed April 3, 2006For Securities:EME

Summary

EMCOR Group, Inc. (EME) filed an 8-K on April 3, 2006, to report on the establishment of performance goals and maximum bonus payouts for its key executives under the 2006 Key Executive Incentive Bonus Plan. This filing provides transparency into the company's executive compensation structure for the fiscal year 2006. Specifically, the Compensation and Personnel Committee of the Board of Directors has set performance metrics tied to operating income, cash flow from operating activities, and earnings per share for 2006. The maximum bonus payable to named executive officers, including the CEO and CFO, is set at 200% of their respective annual salaries, contingent upon achieving these pre-defined financial targets. The committee retains discretion to award bonuses below the maximum.

Key Highlights

  • 1EMCOR Group, Inc. established performance goals for its 2006 Key Executive Incentive Bonus Plan.
  • 2Maximum bonus for key executives is set at 200% of their 2006 annual salary.
  • 3Performance targets are based on 2006 operating income, 2006 cash flows from operating activities, and 2006 earnings per share.
  • 4Named executive officers include the CEO, President, COO, Executive Vice Presidents, and Senior Vice President.
  • 5The Compensation and Personnel Committee has the discretion to adjust bonus payouts below the maximum.
  • 6The report was filed on April 3, 2006, covering events of March 30, 2006.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose the performance metrics and maximum bonus amounts established for EMCOR's key executives under its 2006 Key Executive Incentive Bonus Plan. This is a standard disclosure for material compensation arrangements.

The executive bonuses for 2006 are tied to achieving specific financial performance goals, namely the company's operating income, cash flows from operating activities, and earnings per share for the fiscal year 2006.

The maximum bonus payable to each of the named executive officers is up to 200% of their respective annual salary for 2006, provided the company meets the specified performance goals.

No, meeting the performance goals makes the maximum bonus payable. However, the Compensation and Personnel Committee of the Board of Directors retains the sole discretion to determine the actual bonus amount awarded, which could be less than the maximum.