File Name : Annual Incentive Plan (1SMALL)
Length : 00:04:39
Speakers : 1
Verbatim : No
Time codes : 30 Seconds
Special Comment :
[Audio Starts]
Erik Agostoni: Hello everyone. My name is Erik Agostoni and I lead Total Rewards here at Kennametal, and the purpose of this video is to explain some of the enhancements that we are making to the prime bonus plan. And actually one of the enhancements is we are going to be changing the name of the prime bonus plan to the annual incentive plan. So, going forward, the [00:00:30] annual incentive plan will be the name of our annual cash incentive plan and it’s going to be very similar as you will see to the prime bonus plan with some key enhancements.
Another key enhancement that we are making is historically there has been 40 to 50 different prime bonus plans across the globe. Well, there is going to be one going forward and that one annual incentive plan is going to have the same financial performance matrix affiliated with it. The first being Corporate EBIT [00:01:00], which is earnings before interest and taxes.
What corporate EBIT measures is profitable sales growth and revenue growth and there are different ins and outs of EBIT that we will explain to you in the annual incentive plan document. So, we are going to inform you as to what goes into EBIT, so that you can see how your behaviors impact EBIT globally.
The other financial measure is going to be corporate free operating cash flows or FOCF. That’s very similar to what was in the prime bonus plan [00:01:30] in prior years and again we will explain the ins and outs of free operating cash flow and the plan, so that you can see again how your behaviors can impact and influence free operating cash flow at the corporate level.
And new to the annual incentive plan is the individual performance metric and that’s going to be related to the key individual performance goals that you have established with your manager in your PPM. So, we are going to...