2014 Regal-Beloit Proxy

Did the NEOs’ compensation in 2014 align with corporate performance and the creation of shareholder value? We believe our executive compensation in 2014 aligned well with the objectives of our compensation philosophy and with our corporate performance. Our company achieved revenues of $3.3 billion, the highest in our company’s history, and completed or announced three acquisitions, the latest being the transformational acquisition of Emerson Electric Co.’s Power Transmission Solutions Business. We paid our 218 th consecutive quarterly dividend and increased the dividend 10% in 2014. The dividend increase of $.08 per share was double our historical dividend increases in recent years of $.04 per share. Further, we repurchased 500,000 shares of our common stock in 2014, fully offsetting the dilutive impact of management equity compensation for the year. Our total shareholder return for the fiscal year ended January 3, 2015 was 3.6%. Despite the progress we made in 2014, we did not meet the performance thresholds set at the beginning of the year for our annual cash incentive awards under our shareholder‐approved Shareholder Value Added (“SVA”) Plan, which we refer to as our SVA Cash Incentive Plan, and therefore no annual cash incentives were earned in 2014.

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