![Show Menu](styles/mobile-menu.png)
![Page Background](./../common/page-substrates/page0043.png)
40
to the TSR performance metric and half of them being subject to the adjusted operating profit margin
rate performance metric.
Other Benefits and Perquisites
Do you provide any other benefits or perquisites to your NEOs?
We have certain other plans that provide, or may provide, compensation and benefits to our
NEOs. The Committee considers all of these plans and benefits when reviewing total compensation of
our NEOs. These plans include the following:
Plan or Benefit
Description
Other
401(k)
Participants are eligible to contribute a portion
of their compensation on a pre‐tax basis, up to
the limits imposed by the Internal Revenue
Service, and we make a matching contribution
equal to 100% of the first 1% and 50% of the
next 5% of base salary contributed by the
employees into their 401(k) accounts.
We also contributed an additional 2% of Mr.
Schlemmer’s base salary to his account
under our 401(k) plan pursuant to an
arrangement established when the
Marathon Electric Salaried Employees’
Pension Plan, in which he participated, was
frozen at the end of 2008.
Target
Supplemental
Executive
Retirement Plan
(“SERP”)
Provides a competitive retirement package by
extending retirement benefits without regard
to statutory limitations under tax‐qualified
plans.
We include the Target SERP in our periodic
benchmarking of benefits other than direct
compensation. The most recent such review
was in 2013 and, based on that review, the
Committee determined not to modify the
current Plan.
Disability Benefits
Provides short‐term disability benefit in the
form of up to six months of base salary
replacement.
Provides long‐term disability benefit of 60% of
base salary.
Life Insurance
We provide our NEOs with company‐paid term
life insurance.
The premiums paid for each of our NEOs for
this life insurance in 2014 are included below
in the “Summary Compensation Table for
Fiscal Years 2012‐2014” in the column
entitled “All Other Compensation.” We do
not provide a tax gross up in connection with
this benefit.
Perquisites
Each of the NEOs had use of a company car for
business and personal travel.
Executive Stock Ownership Requirements
To underscore the importance of linking executive compensation and shareholder interests, we
have implemented stock ownership requirements for certain executives, including our NEOs. Executives