2014 Regal-Beloit Proxy

The Elements of Total Compensation

We achieve our executive compensation objectives through the following ongoing programs. All of our NEOs participate in these programs.

Program

Description

Participants

Objectives

Annual Cash Compensation

Base Salary

Annual cash compensation

All employees

Retention Competitive Practices

● Individual

contribution

Shareholder Value Added (SVA) Annual Cash Incentive

Annual cash incentive with target awards established at each employee level Payments can be higher (subject to a 200% cap) or lower than target, based on business unit and total company annual results Amounts earned above target are deferred and remain subject to forfeiture until they are paid; payment occurs in three equal annual installments beginning in the second year following the performance period

All executive officers and key employees

Drive superior performance

● Across total company ● Across

business units

Competitive Practices Retention Shareholder Alignment

34