Summary
This SEC filing by The Sherwin-Williams Company on February 23, 2006, details the Compensation Committee's decisions regarding executive compensation for 2006. Key actions include approving base salary increases for named executive officers, announcing annual cash bonus awards earned in 2005, and establishing performance-based incentive compensation levels and individual performance goals for 2006. The filing also discloses the grant of restricted stock to these executives, with vesting tied to company performance over a four-year period. This information provides insight into the company's strategy for retaining and motivating its senior leadership through a combination of fixed and performance-based compensation tied to key financial metrics.
Key Highlights
- 1Approved base salary increases for named executive officers, with CEO C.M. Connor's salary set at $1,116,648 for 2006.
- 2Announced 2005 annual cash bonus awards, with CEO C.M. Connor receiving $1,505,000.
- 3Established 2006 incentive compensation ranges (minimum, target, maximum) as a percentage of base salary for named executive officers, indicating performance-based pay structure.
- 4Granted restricted stock to named executive officers, with a total of 99,700 shares awarded.
- 5Restricted stock vesting is performance-based, contingent on achieving specified goals for average return on equity and cumulative EBITDA over four years.
- 6Individual performance goals for 2006 are detailed for various executives, focusing on metrics such as net sales, diluted EPS, return on equity, and cash flow.