ARI Management Incentive Bonus Plan Summary for FY12
This document outlines ARI's Management Incentive Bonus Plan for executives for fiscal year 2012. The plan bases executive bonuses on two performance targets: Adjusted EBITDA and Recurring Revenue, each accounting for 50% of the total bonus. Bonus payouts are determined by the company's achievement of specific growth benchmarks in these areas, with detailed payout grids provided. The VP of Sales has an additional commission component. All bonus payments and performance assessments require final approval from the President/CEO.
Management Incentive Bonus Plan
FY12
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 2012
Recurring Revenue Growth
% of plan payout % incremental increase
1st break53% 25.0%
2nd break55% 30.0% 2.50
3rd break60% 35.0% 1.00
4th break65% 42.5% 1.50
5th break70% 50.0% 1.50
6th break75% 55.0% 1.00
7th break80% 60.0% 1.00
8th break85% 67.5% 1.50
9th break90% 75.0% 1.50
10th break95% 85.0% 2.00
100% of plan100% 100.0% 3.00
> 100%+ 1% + 3%
Cap116% 150%
Adjusted EBITDA Growth
% of plan payout % incremental increase
1st break 80.0% 50.0%
2nd break 82.5% 55.0% 2.00
3rd break 85.0% 60.0% 2.00
4th break 87.5% 66.0% 2.40
5th break 90.0% 72.0% 2.40
6th break 92.5% 79.0% 2.80
7th break 95.0% 86.0% 2.80
8th break 97.5% 93.0% 2.80
100% of plan 100.0% 100.0% 2.80
> 100% + 1% + 2%
Cap 125% 150%
The VP of Sales also has a commission element to his plan in addition to the partition of his compensation that falls under the MIBP. All final bonus payments, and MBO attainment, will be reviewed and approved by the President/CEO.
