To understand Tootsie Roll Industries ’s incentive compensation design, access Tootsie Roll Industries ’s SEC filings at:

sec.gov/edgar/searchadgar/companysearch.html

Type Tootsie Roll (or its ticker symbol TR) in the company name search space. When the list of SEC filings comes into view, access: form DEF 14A, the proxy statement dated 3/26/2010.

Instructions

a. From the “Summary Compensation Table” on page 16 of the proxy statement, identify the company positions that are eligible for management incentive compensation. What is the ratio of the bonus to the actual salary for each management position in 2009?

b. Pages 11 through 14 of the proxy statement provide detailed information about the incentive compensation program. What are the overall objectives of the program?

c. What type of compensation does the program cover?

d. What measures of company performance were considered in the determination of 2009 bonuses and awards?

Internet sites are time and date sensitive. It is the purpose of these exercises to have you explore the Internet. You may need to use the Yahoo! search engine www.yahoo.com (or another favorite search engine) to find a company’s current Web address.