ALLETE Executive Annual Incentive Plan Form of Award (2009)
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Summary
This agreement outlines the terms of ALLETE's Executive Annual Incentive Plan for eligible executive employees, effective 2009. It details how annual incentive awards are calculated based on a percentage of the executive's base salary and achievement of specific performance goals, including net income, cash flow, and strategic objectives. The plan specifies different payout levels depending on whether threshold net income is achieved, with awards ranging from 0% to 200% of the target amount. The agreement sets clear performance metrics and payout structures for participating executives.
EX-10.H7 5 exhibit_10h7.htm ALLETE EXECUTIVE ANNUAL INCENTIVE PLAN exhibit_10h7.htm
Exhibit 10(h)7
ALLETE 2008 Form 10-K
ALLETE Executive Annual Incentive Plan
Form of Award
Effective 2009
[Eligible Executive Employees]
Target Award Opportunity
| Base Salary | $ |
| Times | |
| Award Opportunity (percent of base salary) | % |
| Equals | |
| Target Award | $ |
Performance Levels and Award Amounts
| If Threshold Net Income Achieved | If Threshold Net Income Not Achieved | ||||||||
| Below Threshold | Threshold | Target | Superior | Below Threshold | Threshold | Target | Superior | ||
| Net Income | 0% | 25% | 50% | 100% | 0% | 0% | 0% | 0% | |
| Cash Flow | 0% | 12.5% | 25% | 50% | 0% | 12.5% | 25% | 50% | |
| Strategic Goals | 0% | 0% | 25% | 50% | 0% | 0% | 0% | 0% | |
| Payout as Percent of Target Award Opportunity | 0% | 37.5% | 100% | 200% | 0% | 12.5% | 25% | 50% | |
Goals
| Goal | ||||||
| Weighting | ||||||
| Financial Goals | ||||||
| Net Income | 50% | |||||
| Cash from Operating Activities | 25% | |||||
| Strategic Goals | 25% | |||||
| 100% | ||||||
