Management Incentive Compensation Plan Fiscal Year 2003
STERIS Corporation provides incentive compensation opportunities for Employees at the Manager level and higher through the
Management Incentive Compensation Plan (MICP). The incentive Plan is designed to reward achievement of Company and
Group performance objectives. The Program is intended to encourage participants to focus on the achievement of individual
objectives that support Company goals through teamwork, personal initiative, and efficiency.
The MICP is an annual incentive compensation program that is reviewed, revised, and approved annually by the Board of
Directors. At the beginning of the fiscal year, an incentive compensation pool is created, based on individual employee
incentive targets tied to grade level and overall responsibilities. The incentive compensation pool is then evaluated against
achievement of performance criteria, which for fiscal year 2003 is Revenue Growth, Earnings Before Interest & Taxes (EBIT)
Margin, and Net Income (excluding one-time charges) objectives that are based upon the Annual Business Plan. The program
includes parameters for a minimum payout at threshold achievement levels and maximum payout, or cap, for exceeding the
performance criteria established at the beginning of the fiscal year.
Individual determination, or payout, of incentive compensation will be at management’s discretion and will be based upon
individual performance against MBOs established, and agreed to at the beginning of the fiscal year, and other criteria as set
forth in the individual business units’ performance evaluation program. In addition, payouts will be charged against the overall
corporate incentive compensation pool. In no case will the sum total of individual employee incentive compensation
recommendations exceed the overall corporate incentive compensation pool.
Bonus payments will be made to participants, who are active employees a