Summary
W.W. Grainger, Inc. (GWW) filed an 8-K on December 8, 2004, to report on the approval of its 2005 Management Incentive Program (MIP) and a new Directors Compensation Program, effective January 1, 2005. The 2005 MIP will cover approximately 1,200 employees, including senior management and key personnel, and its structure is consistent with the company's 2004 program. The new Directors Compensation Program outlines an updated structure for compensating non-employee directors. This includes an annual retainer of $60,000 for regular board and committee meetings, with a $1,500 per-meeting fee for additional sessions. Committee chairs will receive additional annual retainers, as will other directors for committee service. Furthermore, directors will receive annual deferred stock unit grants valued at $60,000, settled upon their departure from the board. Directors have the option to defer certain compensation into a phantom stock unit account.
Key Highlights
- 1W.W. Grainger approved its 2005 Management Incentive Program (MIP) for approximately 1,200 employees.
- 2The 2005 MIP structure is consistent with the company's 2004 program.
- 3A new Directors Compensation Program was approved, effective January 1, 2005.
- 4Non-employee directors will receive an annual retainer of $60,000 for regular meetings.
- 5Additional meetings will be compensated at $1,500 per director.
- 6Committee chairs will receive additional annual retainers ranging from $7,500 to $10,000.
- 7Directors will receive annual deferred stock unit grants valued at $60,000, settled upon termination of service.