SEC Filings

PRE 14A
RELIANCE STEEL & ALUMINUM CO filed this Form PRE 14A on 04/06/2001
Entire Document
 
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     In May 1998, the shareholders approved the Directors Stock Option Plan for
non-employee directors (the "Directors Plan"). There are 300,000 shares of the
Company's Common Stock reserved for issuance under the Directors Plan. In
February 1999, the Directors Plan was amended to authorize the Board of
Directors of the Company to grant additional options to acquire the Company's
Common Stock to non-employee directors. Options under the Directors Plan are
non-qualified stock options, with an exercise price equal to fair market value
at the date of grant. All options granted expire five years from the date of
grant. None of the stock options becomes exercisable until one year after the
date of the grant, unless specifically approved by the Board of Directors. In
each of the following four years, 25% of the options become exercisable on a
cumulative basis. In 1998, options to purchase 37,500 shares of the Company's
Common Stock were issued at $26.08 per share. In January 1999, options to
purchase 7,500 shares of the Company's Common Stock were issued at $18.58 per
share. In February 1999, options to purchase 7,500 shares of the Company's
Common Stock were issued at $18.04 per share. In March 1999, options to purchase
105,000 shares of the Company's Common Stock were issued at $18.83 per share.
With this grant, 20% of the options were immediately exercisable, and, in each
of the following four years, 20% of the options become exercisable on a
cumulative basis, as specifically approved by the Board of Directors. No options
were issued in 2000. No options were exercisable during 1998. In 1999, options
to acquire 1,500 shares of the Company's Common Stock were exercised at a price
of $18.83 per share. In 2000, options to acquire 6,000 shares of the Company's
Common Stock were exercised at a price of $18.83 per share.
 
401(k) SAVINGS PLAN
 
     Various 401(k) and profit sharing plans were maintained by the Company and
its subsidiaries. Effective in 1998, the Reliance Steel & Aluminum Co. Master
401(k) Plan (the "Master Plan") was established, which combined several of the
various 401(k) and profit sharing plans of the Company and its subsidiaries into
one plan. Salaried and certain hourly employees of the Company and its
participating subsidiaries are covered under the Master Plan. The Master Plan
will continue to allow each subsidiary's Board to determine independently the
annual matching percentage and maximum compensation limits or annual profit
sharing contribution. Eligibility occurs after three months of service, and the
Company contribution vests at 25% per year, commencing one year after the
employee enters the Master Plan. The Company contributions to the Master Plan
for the years ended December 31, 2000, 1999 and 1998 were $3,792,000, $2,596,000
and $2,965,000, respectively. Other 401(k) and profit sharing plans exist as
certain subsidiaries have not yet combined their plans into the Master Plan as
of December 31, 2000. During 2000, the 401(k) benefit plans acquired as a result
of the acquisitions of certain subsidiaries were merged into the Master Plan,
resulting in additional contribution expense during the 2000 year of
approximately $1,210,000.
 
     The Company also participates in various multi-employer pension plans
covering certain employees not covered under the Company's benefit plans
pursuant to agreements between the Company and collective bargaining units who
are members of such plans.
 
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
 
     In 1996, the Company adopted a Supplemental Executive Retirement Plan
("SERP"), which provides post-retirement benefits to key officers of the
Company. Under the SERP, benefit payments equal 50% of the average of the
participant's highest five years of the last ten years of total cash
compensation, less benefits from other Company sponsored retirement plans,
including the 401(k) Plan and ESOP. The SERP was amended in 1999 to provide for
a pre-retirement death benefit. A separate SERP exists for one of the companies
acquired during 1998, which provides post-retirement benefits to its employees.
The Company expenses were $1,096,000, $1,007,000 and $681,000 for the plans for
the years ended December 31, 2000, 1999 and 1998, respectively, based on
calculations made by the Company's actuaries.
 
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