Summary
This 8-K filing from Ingersoll-Rand plc (now Trane Technologies plc) on December 7, 2010, details a significant change to its executive compensation structure for the upcoming 2011 performance year. The Compensation Committee of the Board of Directors approved a revision to the Annual Incentive Matrix program, which impacts key employees, including Named Executive Officers. This revision introduces 'Operating Margin percentage' as a new financial metric, alongside existing metrics of 'Available Cash Flow' and 'Revenue Growth'. Individual performance will also continue to be a factor in determining incentive payouts.
Key Highlights
- 1Ingersoll-Rand plc revised its Annual Incentive Matrix program for the 2011 performance year.
- 2The revision impacts key employees and Named Executive Officers.
- 3Operating Margin percentage has been added as a new financial metric for incentive determination.
- 4Available Cash Flow remains a financial metric for the incentive program.
- 5Revenue Growth remains a financial metric for the incentive program.
- 6Individual performance will continue to be a component of incentive payouts.
- 7The Compensation Committee of the Board of Directors approved these changes on December 1, 2010.
Frequently Asked Questions
The main purpose of this filing is to disclose the revision of Ingersoll-Rand plc's Annual Incentive Matrix program, specifically the introduction of new performance metrics for executive compensation for the 2011 performance year.
For the 2011 performance year, the company is introducing 'Operating Margin percentage' as a new financial metric. 'Available Cash Flow' and 'Revenue Growth' will continue to be used.
The revised incentive program will affect certain key employees, including the Named Executive Officers of Ingersoll-Rand plc.
The changes to the Annual Incentive Matrix program were approved by the Compensation Committee of the Board of Directors on December 1, 2010.