DEF 14A
KAMAN CORP filed this Form DEF 14A on 03/03/2017
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Aerospace Segment Named Executive Officer. The 2016 annual cash incentive award for Mr. Steiner, President of our Aerospace segment, was calculated based 25% on corporate performance and 75% on predetermined financial goals for the Aerospace segment that were recommended by our CEO and approved by the Committee. The financial performance goals and their weightings for the Aerospace segment were as follows:
Financial Performance Goal
 
 
Weighting
Actual average return on investment vs. target
 
 
20%
Growth in segment operating profit from prior year
 
 
40%
Growth in segment sales from prior year
 
 
30%
Segment free cash flow vs. Plan
 
 
10%
Target return on investment performance is the average return on investment for the three previous calendar years (i.e., the average of 2013, 2014, and 2015 for the 2016 performance year). Growth in segment sales and growth in operating profit both are measured against the prior year. Segment free cash flow represents the net cash provided by (used in) operating activities less expenditures for property, plant & equipment.
"Points" are earned based on the extent to which each performance goal is achieved, with a minimum level of achievement being required to earn any points. The points are then converted into an aggregate payout percentage, which is used to determine the amount of the actual cash incentive award payout. A minimum of 50 points must be accumulated in order to earn any cash incentive award payout and, the more points that are earned, the greater the cash incentive award payout, subject to a maximum cap of 200 points.
Set forth below is a conversion chart illustrating how the total number of points is converted into a percentage of the target award:
ANNUAL INCENTIVE AWARD "POINTS" CONVERSION CHART
Total Points
Earned
 
Percent of Target
Award Earned
Below 50
 
0%
50
 
20%
60
 
30%
70
 
45%
80
 
60%
90
 
80%
100
 
100%
116
 
120%
132
 
140%
148
 
160%
164
 
180%
180 & Above
 
200%
Interpolation is used to determine payments if the number of points falls between two stated levels of total points set forth in the table.
The following table illustrates the calculation of the Aerospace segment portion of Mr. Steiner's 2016 annual cash incentive award payout. As shown in the table, Mr. Steiner earned 50.6 points based on modified 2016 business segment results as measured against the specified financial goals. Using the performance factor weightings and point conversion methodology described above, this resulted in a corresponding segment performance award factor of 20.6%.

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