Compensation Plans

The Company and its subsidiaries have profit sharing plans in which substantially all employees participate. The plans provide for minimum annual contributions of 5% of eligible compensation; contributions above the minimum are discretionary and vary with each participating subsidiary’s profitability. Employees become eligible to participate in the profit sharing plans on the first day of the month following the first full three months in which they are employed. The plans provide that 40% of the contributions vest immediately and that the remaining 60% vest at varying percentages based upon years of service. The Company’s foreign subsidiaries provide pension benefits in accordance with local regulations. Profit sharing expense was $27 million, $29 million, and $25 million in 2011, 2010 and 2009, respectively.

The Company has a Long-Term Incentive Compensation Plan (“LTIP”) that provides for incentive compensation to key executives based on the growth in the Company’s book value per share over a five year period. There are 193,600 units outstanding from the 2011 grant with a maximum value of $48.4 million, of which $5.6 million was earned by December 31, 2011. There are 158,500 units outstanding from the 2008 grant with a maximum value of $39.6 million, of which $17.3 million was earned over the four years ended December 31, 2011. The 2006 grant earned $30.7 million during the five years ended December 31, 2010, and fully paid in 2011.

The following table summarizes the LTIP expense for the three years ended December 31, 2011:



(Dollars in thousands)	2011		2010		2009
2006 grant	$	—	$	5,119	$	3,816
2008 grant	4,597		5,070		3,747
2011 grant	5,644		—		—
Total	$	10,241	$	10,189	$	7,563