Summary
Rockwell Automation, Inc. (ROK) filed an 8-K on April 10, 2007, to report adjustments made by its Compensation and Management Development Committee to the financial performance goals for its Incentive Compensation Plan (ICP) and Senior ICP for fiscal year 2007. These adjustments were necessitated by the divestiture of the Dodge mechanical and Reliance Electric motors and motor repair services businesses on January 31, 2007. The key performance metrics impacted include earnings per share, sales, return on invested capital (ROIC), and free cash flow. Notably, the measurement of ROIC will now be at the Company-wide level rather than the operating segment level due to the divestiture and subsequent centralization of certain business functions. These changes aim to ensure the incentive compensation plans remain relevant and appropriately calibrated following the significant business restructuring.
Key Highlights
- 1Adjustments made to 2007 financial performance goals for cash incentive compensation plans (ICP and Senior ICP).
- 2Divestiture of Dodge mechanical and Reliance Electric businesses on January 31, 2007, is the primary reason for adjustments.
- 3Performance metrics affected include earnings per share, sales, return on invested capital (ROIC), and free cash flow.
- 4ROIC performance goal will now be measured at the Company-wide level instead of the operating segment level.
- 5These changes reflect the impact of the divestiture and subsequent centralization of operations and functions.
- 6The core structure of incentive compensation payments remains as previously outlined in the December 12, 2006, 8-K filing, except for the specified goal adjustments.