The performance goals may be expressed in terms of overall company performance or the performance of any of its subsidiaries, divisions, business units, segments or regions or any individual performance objective, any of which may be measured either in subjective or absolute terms or as compared to any incremental increase or decrease or as compared to results of a peer group or to market performance indicators or indices or the Compensation Committee’s assessment of individual performance. The Compensation Committee may, in its sole discretion, provide that one or more adjustments shall be made to one or more of the performance goals. Such adjustments may include but are not limited to: (i)a change in accounting principle, (ii)financing activities, (iii)expenses for restructuring or productivity initiatives, (iv)other non-operating items, (v)acquisitions or dispositions, (vi)the business operations of an entity acquired by the Company during the performance period, (vii)discontinued operations, (viii)stock dividend, split, combination or exchange of stock, (ix)unusual or extraordinary events, transactions or developments, (x)amortization of intangible assets, (xi)other significant income or expense outside the Company’s core on-going business activities, (xii)other nonrecurring items, (xiii)goodwill or intangible writeoffs, or (xiv)changes in applicable law.

Any bonuses paid to participants under the Bonus Plan shall be based upon bonus formulas that tie such bonuses to one or more performance objectives relating to the performance goals. The Compensation Committee will select the performance goals applicable for each performance period. The performance period shall be the Company’s fiscal year, which commences on January1stand ends on December31st. Participants need not be employed on the first day of a performance period. If a participant becomes eligible to participate in the Bonus Plan during a performance period, the Compensation Committee shall determine if such participant shall be eligible to participate in an award for such performance period and whether or not such award may be prorated for such period.

The Compensation Committee may in its sole discretion increase or decrease a bonus payable to a participant to the applicable bonus formula to account for demonstrated quality of performance or the occurrence of significant, unforeseen events or changes; provided that with respect to any performance period the amount of the bonus payable to a participant under the Bonus Plan may not exceed 200% of the participant’s target bonus as established by the Compensation Committee.

All awards shall be paid in (i)cash or (ii)with the consent of the participant and the Compensation Committee, restricted stock units to the terms of the Company’s Management Stock Purchase Plan, as it may be amended from time to time, or any successor equity incentive plan thereto. No awards shall be paid unless and until the Compensation Committee approves the amounts payable with respect to each award. Awards shall be paid as soon as practicable following the end of the performance period, but in no event shall payment be made later than two and one half months following the end of the performance period.

Continued Employment. The payment of a bonus to a participant with respect to a performance period shall be conditioned upon the participant’s employment by the Company on the date on which the bonus is paid; provided, however, that in the discretion of the Compensation Committee, (i)full bonuses may be paid to participants who have terminated employment due to disability or following a change in control, or to the designee or estate of a participant who died during such period and (ii)pro rata bonuses may be paid to a participant whose employment is terminated or who retires during the performance period based on actual performance.

Item 8.01. Other Events

On February7, 2019, the Company issued a press release announcing that its Board of Directors has authorized the repurchase of up to $150 million of the Company’s ClassA Common Stock from time to time on the open market or in privately negotiated transactions. The timing and number of any shares repurchased will be determined by the Company’s management based on its evaluation of market conditions. Repurchases may also be made under a Rule10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with its stock plans and for corporate purposes.

The Company has an existing written trading plan under Rule10b5-1 of the Exchange Act implemented on December12, 2018 in connection with its prior share repurchase program and expects to enter into a new trading plan under Rule10b5-1 in connection with the newly authorized share repurchase program following completion of the prior repurchase program. Adopting a trading plan that satisfies the conditions of Rule10b5-1 allows a company to repurchase its shares at times when it might otherwise be prevented from doing so due to self-imposed trading blackout periods or to insider trading laws. A broker selected by the Company will have the authority under the terms and limitations specified in the plan to repurchase shares on the Company’s behalf in accordance with the terms of the plan.

Information regarding share repurchases will be available in the Company’s periodic reports on Form10-K and 10-Q filed with the Securities and Exchange Commission.

Item 9.01. Financial Statements and Exhibits

(d)Exhibits.

WATTS WATER TECHNOLOGIES INC Exhibit
EX-10.1 2 a19-4025_1ex10d1.htm EX-10.1 Exhibit 10.1   WATTS WATER TECHNOLOGIES,…
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About WATTS WATER TECHNOLOGIES,INC. (NYSE:WTS)

Watts Water Technologies, Inc. (Watts) is a supplier of products and solutions that manage and conserve the flow of fluids and energy into, through and out of buildings in the residential and commercial markets. The Company, through its subsidiary, Watts Regulator Co., is engaged in manufacturing products and systems focused on the control, conservation and quality of water, and safety of the people using it. The Company’s operating segments include Americas, EMEA and Asia-Pacific. The Company distributes its products through primary distribution channels, including wholesale, original equipment manufacturers (OEMs) and do-it-yourself (DIY). The Company offers a range of products in terms of design distinction, size and configuration. It offers products in four product lines, including residential and commercial flow control products; heating, ventilation and air conditioning (HVAC) and gas products; drainage and water re-use products, and water quality products.