Management Incentive Compensation Plan
The objective of the STERIS Corporation Management Incentive Compensation Plan (MICP) is to encourage
greater initiative, resourcefulness, teamwork, efficiency, and achievement of objectives on the part of key
management whose performance and responsibilities directly affect Company profits.
The MICP for FY 1997 may be reviewed and revised at the Chief Executive Officer's discretion within the
guidelines established by the Compensation Committee of the Board of Directors. Any incentive payouts under
the terms of this Plan will be limited by any governmental regulations that are in effect at the time of such incentive
The incentive compensation fund available for disbursement to participants shall be determined by achievement of
key parameters of the approved Annual Business Plan.
Management Incentive Compensation will be calculated after the close of each quarter and will be cumulative and
retroactive. That is, deficiencies in year-to-date (YTD) performance can be made up by overachievement in
subsequent quarters during the fiscal year.
A portion of the earned Management Incentive Compensation will be paid on a quarterly basis with another
portion held in an escrow account to be paid on an annual basis. An accrual funding schedule will be developed
and maintained by the Finance Department to reserve adequate funds for the payment of earned Management
MICP compensation will be determined through achievement of a combination of Annual Business Plan (ABP)
objectives and Quarterly Individual Objectives (IO). ABP parameters are the Net Revenue, Operating Income,
and Net Income objectives. IO parameters are approved quarterly personal objectives that are brief, specific,
measurable, and consistent with overall Company objectives.
The management level classifications of individuals who may be eligible to part