2014 Regal-Beloit Proxy

to the TSR performance metric and half of them being subject to the adjusted operating profit margin rate performance metric.

Other Benefits and Perquisites Do you provide any other benefits or perquisites to your NEOs? We have certain other plans that provide, or may provide, compensation and benefits to our NEOs. The Committee considers all of these plans and benefits when reviewing total compensation of our NEOs. These plans include the following:

Other

Plan or Benefit

Description

401(k)

Participants are eligible to contribute a portion of their compensation on a pre‐tax basis, up to the limits imposed by the Internal Revenue Service, and we make a matching contribution equal to 100% of the first 1% and 50% of the next 5% of base salary contributed by the employees into their 401(k) accounts. Provides a competitive retirement package by extending retirement benefits without regard to statutory limitations under tax‐qualified plans. Provides short‐term disability benefit in the form of up to six months of base salary replacement. Provides long‐term disability benefit of 60% of base salary. We provide our NEOs with company‐paid term life insurance.

We also contributed an additional 2% of Mr. Schlemmer’s base salary to his account under our 401(k) plan pursuant to an arrangement established when the Marathon Electric Salaried Employees’ Pension Plan, in which he participated, was frozen at the end of 2008. We include the Target SERP in our periodic benchmarking of benefits other than direct compensation. The most recent such review was in 2013 and, based on that review, the Committee determined not to modify the current Plan.

Target Supplemental Executive Retirement Plan (“SERP”)

Disability Benefits

Life Insurance

The premiums paid for each of our NEOs for this life insurance in 2014 are included below in the “Summary Compensation Table for Fiscal Years 2012‐2014” in the column entitled “All Other Compensation.” We do not provide a tax gross up in connection with this benefit.

Perquisites

Each of the NEOs had use of a company car for business and personal travel.

Executive Stock Ownership Requirements To underscore the importance of linking executive compensation and shareholder interests, we have implemented stock ownership requirements for certain executives, including our NEOs. Executives

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