Business Context and Reporting Period
This Form 8-K is a current report filed by Actuant Corporation (not Enerpac Tool Group Corp) on October 12, 2006. The filing discloses the entry into a material definitive agreement regarding executive compensation effective for calendar year 2007.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, margins, debt, or liquidity figures. It focuses exclusively on executive compensation structures.
| Executive | Functional Area | 2007 Base Salary | 2007 Bonus Target |
|---|---|---|---|
| Robert C. Arzbaecher | Chief Executive Officer | $800,000 | $800,000 |
| Andrew G. Lampereur | Executive VP & CFO | $375,000 | $206,250 |
| Gustav H.P. Boel | Executive Vice President | $301,066 | $120,426 |
| Mark E. Goldstein | Executive VP-Tools & Supplies | $450,000 | $270,000 |
| William S. Blackmore | Executive VP-Engineered Solutions | $375,000 | $206,250 |
Material Changes
The Compensation Committee established new base salaries and bonus targets for fiscal 2007. The filing does not provide comparative data against prior periods to quantify percentage changes.
Guidance, Outlook, and Management Commentary
Bonus Plan Structure:
- Corporate Executives: Targets are based 80% on year-over-year improvement in Consolidated Combined Management Measure (CMM), 10% on low-cost country sourcing, and 10% on sales growth.
- Segment Leaders: Targets are based 60% on segment CMM improvement, 20% on consolidated CMM improvement, 10% on low-cost country sourcing, and 10% on sales growth.
Definitions:
- Consolidated CMM: Net earnings before interest, taxes, and amortization less an Asset Carrying Charge of 20% of net debt, shareholders' equity, and accumulated amortization of intangible assets.
- Segment CMM: Operating Profit (before amortization) less an Asset Carrying Charge of 20% of Net Assets Employed.
Future Filings: Additional compensation details will be included in the Proxy Statement for the Annual Meeting of Shareholders on January 16, 2007, expected to be filed in December 2006.
Investor Verification Checklist
- Verify the discrepancy between the request metadata (Enerpac Tool Group Corp) and the filing registrant (Actuant Corporation).
- Confirm the calculation methodology for the "Asset Carrying Charge" used in CMM metrics.
- Review the upcoming Proxy Statement (expected December 2006) for full compensation details and potential clawback provisions.
- Assess the impact of the "low cost country sourcing" target on future operational strategy and capital allocation.