SEC Filings

DEF 14A
RELIANCE STEEL & ALUMINUM CO filed this Form DEF 14A on 04/18/2000
Entire Document
 
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assets. This bonus plan has been in effect for many years. In 1999, 19 out of 23
division managers received bonuses under this plan. In addition, most divisions
have informal incentive compensation arrangements for other employees, which are
proposed by division managers and approved from time to time by executive
officers of the Company. The Company's subsidiaries have separate incentive
bonus plans structured in the same manner to provide bonuses to certain of the
officers and managers of these subsidiaries, based upon the earnings of the
respective subsidiary. These subsidiary bonus plans are also reviewed
periodically by the executive officers of the Company.
 
EMPLOYEE STOCK OWNERSHIP PLAN
 
     In 1974, the Company adopted an Employee Stock Ownership Plan ("ESOP") that
was approved by the Internal Revenue Service as a qualified plan and that allows
eligible employees to acquire stock in the Company. Bank of America was the
trustee of the ESOP until March 1, 1999, when Union Bank of California was
appointed the ESOP trustee. All non-union employees, including officers, are
eligible to participate in the ESOP as of January 1 after one and one-half years
of service with the Company. An employee who is eligible to participate is fully
vested in the shares of the Company's Common Stock allocated to his/her ESOP
account. Allocation is based on the participant's compensation each year,
including bonuses, as compared to the total compensation of all participants,
subject to the maximum amounts established by the Internal Revenue Service. Each
year, the Company contributes to the ESOP an amount determined by the Board of
Directors, but no less than that amount necessary to cover the obligations of
the ESOP, including any trustee's fees. The Company's cash contributions were
$800,000 in 1999, 1998 and 1997. The cash contributions are then used to
purchase shares of the Company's Common Stock on the open market. The shares are
retained by the ESOP until a participant retires or otherwise terminates his/her
employment with the Company. Employees of the subsidiaries are not eligible to
participate under the Company's ESOP.
 
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