ARI Management Incentive Bonus Plan FY2016

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines ARI's 2016 Management Incentive Bonus Plan for executives. Bonuses are based on two performance targets: Adjusted EBITDA and Recurring Revenue, each accounting for 50% of the total bonus. The payout depends on the company's achievement of these targets, with specific percentage thresholds determining bonus amounts. If performance exceeds 120% of targets, the Compensation Committee decides the payout for executives. No bonus is awarded if results are below 70% of a target. Achieving over 100% on both targets is required for higher multipliers.

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EX-10.2 2 aris-20160731xex10_2.htm EX-10.2 Exhibit 10 2 Sum of Exec Bonus

EXHIBIT 10.2





Management Incentive Bonus Plan FY2016



The Management Incentive Bonus Plan (“MIBP”) is the executive bonus plan for all executives. The plan includes two key performance targets for ARI, Adjusted EBITDA and Recurring Revenue (“RR”), each worth 50% of the total on target bonus potential.  Based on the company’s performance in those two areas, the following Grids dictate the ultimate payout of the MBO bonus as a percentage:

Management Bonus Grid

FY 2016









 

 

 

 

 

 

 



Recurring Revenue Growth:

 

 

 

 

 

 



 

% of plan

 

payout %

 

incremental increase

 



 

 

 

 

 

 

 



1st break

 70% 

 

 50.00% 

 

 1.50 

 



2nd break

 80% 

 

 65.00% 

 

 2.00 

 



3rd break

 90% 

 

 90.00% 

 

 1.00 

 



4th break

 100% 

 

 110% 

 

 2.00 

 



5th break

 110% 

 

 120% 

 

 3.00 

 



6th break

>120%

 

see note 1

 

 

 



 

 

 

 

 

 

 



Adjusted EBITDA Growth:

 

 

 

 

 

 



 

 

 

 

 

 

 



 

% of plan

 

payout %

 

incremental increase

 



1st break

 70% 

 

 50.00% 

 

 1.50 

 



2nd break

 80% 

 

 65.00% 

 

 2.00 

 



3rd break

 90% 

 

 90.00% 

 

 1.00 

 



4th break

 100% 

 

 110.00% 

 

 2.00 

 



5th break

 110% 

 

 120.00% 

 

 3.00 

 



6th break

>120%

 

see note 1

 

 

 







Note 1:  >120% payment % is at Compensation Committee discretion for Executives; CEO for non‐executives.

Note 2:  No bonus earned for specific target if actual results for that target are < 70% achievement.

Note 3:  >100% multiplier earned only if achievement is at least 100% on both targets.

Note 4:  >120% payment % is at Compensation Committee discretion for Executives; CEO for non‐executives.