ALLETE Executive Annual Incentive Plan Form of Award (Effective 2012)

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines the terms of the ALLETE Executive Annual Incentive Plan for eligible executive employees, effective in 2012. It details how target awards are calculated based on a percentage of base salary and specifies performance levels—Superior, Target, Threshold, and Below Threshold—that determine payout amounts. The plan uses financial and strategic goals with assigned weightings to assess performance. All compensation under this plan is subject to ALLETE's Compensation Recovery policy, which allows for recoupment under certain conditions.

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EX-10.(H)4 2 exhibit10h412-31x2011.htm ALLETE EXECUTIVE ANNUAL INCENTIVE PLAN FORM OF AWARDS EFFECTIVE 2012 Exhibit 10(h)4 12-31-2011


Exhibit 10(h)4

ALLETE Executive Annual Incentive Plan
Form of Award
Effective 2012
[Eligible Executive Employees]

Target Award Opportunity


Base Salary
$
 
 
Times
 
 
 
Award Opportunity (percent of base salary)
%
 
 
Equals
 
 
 
Target Award
$

Performance Levels and Award Amounts


Goal Performance Level
Payout as Percent of
Target Award
Award Amount
Superior
200%
$
Target
100%
$
Threshold
37.5%
$
Below Threshold
—%
$


Goals

 
 
 
 
 
 
 
Goal
 
 
 
 
 
 
 
Weighting
 
Financial Goals
 
 
 
 
 
 
 
Net Income Attributable to ALLETE
50%
 
 
Cash from Operating Activities
 
25%
 
 
 
 
 
 
 
 
 
Strategic & Operational Positioning Goals
 
 
 
  25% 
 
 
 
 
 
 
 
100%

Compensation Subject to Compensation Recovery Policy

Annual Incentive Plan Compensation is subject to recoupment as defined in the Compensation Recovery policy.