Altairnano 2007 Incentive Plan for Management Team
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Summary
Altairnano's 2007 Incentive Plan, approved by the Board, sets out bonus structures for management employees based on company and individual performance. Employees are divided into two groups: Levels 2-8 receive bonuses based on both company and individual performance, while Levels 9-13 (including executives) are rewarded solely on company performance. The plan uses financial targets for year-end cash and total revenue to determine payouts, with specific multipliers and caps. Executive officers have defined target bonuses. The plan aims to align employee rewards with company financial goals for the year.
EX-10.1 2 altair_10q-ex1001.htm 2007 INCENTIVE PLAN altair_10q-ex1001.htm
Exhibit 10.1
| Date: | March 9, 2007 |
| To: | Altairnano Management Team |
| From: | Alan J. Gotcher |
| Subject: | Altairnano 2007 Incentive Plan |
The Board has approved the Altairnano 2007 Company Incentive Plan, which defines two groups of employees; the company performance targets and plan pay out against performance:
| · | The Company Performance target is comprised of two financial components: |
| § | Cash at Year End: | $13.0 M | 75% weight |
| § | Total Revenue: | $16.5 M | 25% weight |
| · | There are two groups of employees in the plan. Each group has its own incentive targets: |
| § | Employees at Levels 2 to 8 have 50% of Incentive Bonus based on Company Performance and 50% on Individual Performance; the Incentive Multiplier is capped at 150% for Company Performance and 110% for Individual Performance. |
| § | Employees at Levels 9 to 13 (including executive officers) have 100% of Incentive Bonus based on Company Performance; the Incentive Multiplier is capped at 150% of Company Performance. |
| | · | Incentive Plan payout is based on performance versus variable Incentive Multiplier payout: |
Example 1. Company Performance is near Plan
| % | % | |||
| Criteria | Objective | Actual | Performance | Payout |
| Cash at Year End | $13.0 million | $13.5 million | 104% | 128% |
| Revenue | $16.5 million | $16.5 million | 100% | 120% |
Company Performance Incentive Bonus Payout = .75 X 104 + .25 X 100 = 103%
Payout = 126%
An employee at Level 2-8 with 100% Individual Performance would receive:
50% Incentive Bonus = Company Performance = 126% X .5 = 63% of target bonus
50% Incentive Bonus = Individual Performance = 100% X .5 = 50% of target bonus
If Target Bonus is 15%, then Total Bonus = 17% of salary
An employee at Level 9-13 would earn 126% of their Target Bonus
Example 2. Company Performance is above Plan
| % | % | |||
| Criteria | Objective | Actual | Performance | Payout |
| Cash at Year End | $13.0 million | $15.0 million | 115% | 150% |
| Revenue | $16.5 million | $20.0 million | 121% | 162% |
Company Performance Incentive Bonus Payout = .75 X 115 + .25 X 121 = 116.5%
Payout = 153%
An employee at Level 2-8 with 100% Individual Performance would receive:
50% Incentive Bonus = Company Performance = 153% X .5 = 76.5% of target bonus
50% Incentive Bonus = Individual Performance = 100% X .5 = 50% of target bonus
If Target Bonus is 15%, the Total Bonus = 19% of salary
An employee at Level 9-13 would earn 153% of their Target Bonus
Altairnano Senior Executive 2007 Incentive Plan Targets
| Altairnano Executive | Target Bonus |
| Steve Balogh | $114,000.00 |
| Ed Dickinson | $114,000.00 |
| Alan Gotcher | $288,000.00 |
| Bruce Sabacky | $114,000.00 |
