Exhibit (10)(m)* to Report on Form 10-K for Fiscal Year Ended June 30, 1997 by Parker-Hannifin
Corporation
Parker-Hannifin Corporation 1998-99-00 Long Term Incentive Plan Description
*Numbered in accordance with Item 601 of Regulation S-K.
PARKER-HANNIFIN CORPORATION
1998-99-00
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 are limited to Corporate Officers and Group Presidents. They clearly can affect
broadly the overall financial performance of the company.
The key elements of Parker-Hannifin's Plan are as follows:
Participation
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
Board.
Performance Period
Three-year average Return on Equity with the grant to cover FY 98, 99 and 00.
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.
Form of Awards
Awards will be expressed as a certain number of shares of Parker stock calculated by dividing the dollar
equivalent of the award by the June 30, 1997 Parker stock price.
Performance Objective
The Return on Equity objective is 14%.
Value Range
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.
Performance Range
For performance below a threshold of 8% ROE objective, no payment will be made. For per