EX-10.1 2 d270473dex101.htm ANNUAL INCENTIVE AWARD PLAN CRITERIA FOR FISCAL YEAR 2012 Annual Incentive Award Plan Criteria for fiscal year 2012

EXHIBIT 10.1

Annual Incentive Award Plan Criteria for Fiscal Year 2012 for Named Executive Officers

The Annual Incentive Plan rewards performance based upon segment profit, business unit and individual results. The named executive officers are assigned the following Target Award Percentage of their base salary for fiscal year 2012 Annual Incentive Awards:

 

Level

  

Target Award Percentage

CEO

   110%

12

   75%

11

   65%

Awards are based upon the segment profit of our truck, engine, parts and financial services segments and may be adjusted based upon overall business unit and/or individual performance as illustrated in the table below:

 

Base Salary

   x   

Target Award
Percentage

   x   

Segment Profit
Factor

   x   

Business Unit
/Individual

Factor

   =   

Final Award

The payout multiple of a participant’s Target Award Percentage, depending upon whether threshold, target, distinguished or super-distinguished performance is achieved is as follows:

Payout Multiple of Target Award Percentage

 

Threshold

     25

Target

     100

Distinguished

     150

Super-Distinguished

     200

Segment profit measures the earnings before interest and tax of our truck, engine, parts and financial services segments; our manufacturing margin measures the earnings before interest and tax of our truck, engine and parts segments.