SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date
of
Report (Date of earliest event reported): April
28, 2006
REGAL-BELOIT
CORPORATION
(Exact
name of registrant as specified in its charter)
|
Wisconsin
|
1-7283
|
39-0875718
|
|
(State
of other jurisdiction of incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
200
State Street, Beloit, Wisconsin 53511
(Address
of principal executive office)
(608)
364-8800
Registrant’s
telephone number, including area code
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
□
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
□
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
□
Precommencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
□
Precommencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
|
Entry
into a Material Definitive Agreement.
|
On
April
26, 2006, the Shareholders of REGAL-BELOIT CORPORATION (the “Company”) approved
the REGAL-BELOIT
CORPORATION Shareholder Value Added (SVA) Executive Officers Incentive
Compensation Plan
(the
“Plan”) at the Annual Meeting of Shareholders. The Executive Officers of the
Company (the “Participants”) participate in this program.
The
purpose of the Plan is to provide a system of incentive compensation which
will
promote the maximization of shareholder value over the long term. In order
to
align executive management incentives with shareholder interests, incentive
compensation will reward the creation of value. This Plan ties incentive
compensation to Shareholder Value Added (“SVA”) and, thereby, rewards executive
management for creating value and penalizes management for diminishing
value.
SVA
is
the performance measure of value creation. SVA reflects the benefits and costs
of capital employment. By imputing the cost of capital upon the operating
profits generated by the Company, SVA measures the total value created by
executive management.
SVA
=
(Net Operating Profit After Tax - Capital Charge)
Each
Participant has a prescribed target bonus. The bonus earned in any one year
is
the result of multiplying the Actual Bonus Percentage times the Participant’s
Target Bonus Value. Bonuses earned in any one Fiscal Year up to the Target
Bonus
Value will be fully paid out shortly after the end of that Fiscal Year. Bonuses
earned above the Target Bonus Value are deferred, with one-third of the deferred
balance paid out after the end of each of the following three Fiscal Years.
(Note: The capitalized items in the above paragraphs are as defined here or,
if
not defined here, as defined in the Plan document filed herewith.)
|
Financial
Statements and Exhibits.
|
| (a) |
Not
Applicable
|
| (b) |
Not
Applicable
|
| (c) |
Not
Applicable
|
| (d) |
Exhibits:
The following exhibit is being furnished
herewith:
|
| 10.1 |
Shareholder
Value Added Executive Officers Incentive Compensation
Plan
|
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| REGAL-BELOIT CORPORATION | ||
| |
|
|
| Date: April 28, 2006 | By: | /s/ David A. Barta |
|
|
||
| Vice President, Chief Financial Officer | ||