27 / 84
27
Did the NEOs’ compensation in 2014 align with corporate performance and the creation of
shareholder value?
We believe our executive compensation in 2014 aligned well with the objectives of our
compensation philosophy and with our corporate performance. Our company achieved revenues of
$3.3 billion, the highest in our company’s history, and completed or announced three acquisitions, the
latest being the transformational acquisition of Emerson Electric Co.’s Power Transmission Solutions
Business. We paid our 218
th
consecutive quarterly dividend and increased the dividend 10% in 2014. The
dividend increase of $.08 per share was double our historical dividend increases in recent years of $.04 per
share. Further, we repurchased 500,000 shares of our common stock in 2014, fully offsetting the dilutive
impact of management equity compensation for the year. Our total shareholder return for the fiscal year
ended January 3, 2015 was 3.6%.
Despite the progress we made in 2014, we did not meet the performance thresholds set at the
beginning of the year for our annual cash incentive awards under our shareholder‐approved Shareholder
Value Added (“SVA”) Plan, which we refer to as our SVA Cash Incentive Plan, and therefore no annual cash
incentives were earned in 2014.