成本与福利削减

As Jim and Don shared in October, we have been proactively responding to significant financial headwinds through a cost reduction effort across the company. The entire senior leadership team sincerely thanks everyone for their efforts during this challenging time, especially the professional way our people have handled the situation – acting with a tremendous respect for each other and remaining focused on delivering impressive performance. The job reductions associated with the cost actions are substantially complete, and we now have an update on benefit program decisions.

With the volatile markets and near-term economic outlook so uncertain, we have also been looking for opportunities to lower costs in our employee benefit programs to offset the external headwinds. After careful evaluation of ways to help maintain as many jobs as possible and preserve critical benefits, we have made the following decisions to reduce our operating cost structure.

We have suspended the Stanley Black & Decker Employee Stock Purchase Plan (ESPP) currently available in the U.S. and Canada for 2019

We have not funded 2019 salary increases for salaried employees where statutorily permitted

We are adjusting our MICP management bonus program for 2019 (payout in 2020) to reduce cash and include equity while maintaining existing award target levels

These are the main cost reduction measures taking place for the foreseeable future and are necessary to remain competitive in the face of these macro-economic factors. As always, we will continue to evaluate benefits to align with market practices and keep you updated accordingly. We are not making changes to retirement benefits or core health, life and disability insurance benefits.

As we wrap up the year strong and celebrate the holiday season, we sincerely thank you for your dedication, commitment and understanding of these prudent measures to enable our financial stability and future growth. We expect the changes to be temporary, and we will maintain a close watch on the external economic conditions with the goal of reinstating these benefits at the earliest possible time.

Sincerely,

Joe Voelker

Senior Vice President, Chief Human Resources Officer