Exhibit (10)(m)* to Report on Form 10-K for Fiscal Year Ended June 30, 1996 by Parker-Hannifin
Parker-Hannifin Corporation 1996-97-98 Long Term Incentive Plan Description, as amended as of August 15,
*Numbered in accordance with Item 601 of Regulation S-K.
LONG TERM INCENTIVE PLAN
The purpose of the Plan is to provide a long-term incentive portion of bonus compensation. The plan's focus is on
return on equity. It balances a competitive base salary pay structure, an annual cash bonus compensation based
on a return on average assets, and a stock option plan with ten-year exercise rights. The return on equity
objective is a key financial goal and comprehends return on sales at the net income level and asset utilization.
The participants in this plan in the near term will be limited to Corporate Officers and Group Presidents. They
clearly can affect broadly the overall financial performance of the company. At a later date, it could be expanded
to include Operating Vice Presidents and equivalent Corporate Staff positions.
The key elements of Parker-Hannifin's plan are as follows:
Those key executives having a critical impact on the long term performance of the Company selected by the
Chief Executive Officer and approved by the Compensation and Management Development Committee of the
Three-year average Return on Equity with the grant to cover FY 96, 97 and 98.
Size of Awards
Commensurate with bonus compensation and stock option level of participants as determined by the CEO with
approval of the Compensation and Management Development Committee.
The Return on Equity objective is 14%.
Actual value of the payments under the Plan will be within a range of 25% to 200% of target value based on
performance against the objective.
For performance below a threshold of 8% ROE objective, no payment will be made. For performance between