Charlie Tomm 2005 Platform CEO Compensation Plan

Contract Categories: Human Resources › Compensation Agreements
Summary

This agreement outlines the 2005 compensation plan for Charlie Tomm as Platform CEO. It specifies a base salary of $600,000 and a bonus structure based on net operating income (NOI) and business development objectives. Bonuses are split into semi-annual opportunities, with provisions for recovery if first-half results are below expectations. Additional bonuses are available for successful business development and acquisitions, with payouts determined by performance against set targets. The plan includes regular performance reviews and subjective evaluations for certain bonus components.

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EX-10.3 8 ex103compensationplan.txt COMPENSATION PLAN Exhibit 10.3 Charlie Tomm 2005 Platform CEO Compensation Plan Goals: o Accountability for the most important operating performance elements managed by you o Financial reward for successfully managing these elements o Financially reward "recovery" results if the first half of the year is less than par 2004 Compensation Elements o Base Salary is $600,000 (This is an increase from 500,000) o Total Par Bonus Percent is 80% o Total Par Bonus Dollars are $480,000 o Annual Net Operating Income Bonus (70% of the total Par Bonus Dollars) is $336,000 o Semi annual NOI Par Bonus is $168,000 o Annual Business Development Bonus (30% of the total Par Bonus Dollars) is $144,000 Net Operating Income Bonus Formula (70% of the total Par Bonus) The Bonus Plan is being divided into 2 half-year opportunities but will never pay you less than an annual plan calculation. The approach provides you with the opportunity to rebound from a disappointing first half with a new bonus opportunity in the second half. The details are shown in the chart below. - ------------------------------------ ----------------------------------------- The first half Bonus: Final year end Bonus (2) - ------------------------------------ ----------------------------------------- If NOI Result: Using the first Final Payment Final Bonus payment half bonus will be will be: formula the Mid calculated: (1) year payment will be: - ------------------------------------ ----------------------------------------- Meets or exceeds Par Bonus for Using the The annual calculation Par the first 1/2 Annual Bonus less the par bonus year calculation paid in the first half. - ------------------------------------ ----------------------------------------- Between Threshold Actual first Second half Actual second half and par half Bonus Bonus Formula Bonus. This can pay up to 10% more than the annual Plan calculation - ------------------------------------ ----------------------------------------- Below Threshold No Bonus Second half Actual second half Bonus Formula Bonus. Potential for meaningful increase over the annual plan - ------------------------------------ ----------------------------------------- 1. First 1/2 Payments are never forfeited 2. The annual Business Development bonus will be paid out with the final Bonus payment 1 The Bonus targets and formulas for 2005 are detailed in the next 2 charts.
Annual Targets - ---------------------------------------------------------------------------------------------------------------------- NOI (% of Level NOI Dollars Budget)(1) Bonus Dollars Annual Formula - --------------------- ------------------- --------------- ------------------- ---------------------------------------- Threshold 47,300,000 90% $67,200 $67,200 - --------------------- ------------------- --------------- ------------------- ---------------------------------------- Par 52,500,000 100% $336,000 $67,200 Plus 5.1% of NOI over threshold - --------------------- ------------------- --------------- ------------------- ---------------------------------------- Double 62,000,000 118% $672,000 $336,000 Plus 3.6% of NOI over Par - --------------------- ------------------- --------------- ------------------- ----------------------------------------
(1) Intentionally Omitted
Semi Annual Targets (based upon your calendarized budgets) - ---------------------------------------------------------------------------------------------------------------------- Level First Half NOI First Half Formula Second half NOI Second half Formula Dollars Dollars - ---------------- ----------------- ---------------------------- ----------------- ------------------------------------ Threshold 23,100,000 $33,600 24,100,000 $33,600 - ---------------- ----------------- ---------------------------- ----------------- ------------------------------------ Par 25,700,000 $33,600plus 5.2% of NOI in 26,800,000 $33,600 plus 5% of NOI in excess excess of the threshold of the threshold - ---------------- ----------------- ---------------------------- ----------------- ------------------------------------ Double 30,300,000 $168,000 Plus 3.6% of NOI 31,600,000 $168,000 Plus 3.5% of NOI in in excess of Par excess of Par - ---------------- ----------------- ---------------------------- ----------------- ------------------------------------
Business Development Objectives Bonus (30% of the total Par Bonus) o Goals/metrics for each of the objectives, addressing the specific challenges, are set at the beginning of the year. The categories are detailed below. o Regular reviews with Ken Gilman to evaluate YTD performance against these objectives. The metrics will facilitate a fact-based discussion. o Final review with Ken Gilman at the end of the year to establish year- end payout. The payout will not be based upon a numerical calculation, rather a subjective evaluation of the Business Development topics in the below table (including related metrics). o Payout range 0% to 200% of the Par. - --------------- --------------- ------------------------- ------------------- Frame work Agreement General Manager Compliance Success Productivity Pre-owned Vehicles - --------------- --------------- ------------------------- ------------------- Toyota, Honda, Market Share Total platform personnel Used Car Inventory GM,Nissan expense (including "core" percent - --------------- --------------- management co.) as a % total. Unit sales for GM Turnover of total gross: Evaluated Goal is 65% all but Honda versus budget and trend - --------------- --------------- to prior years' CSI for Honda Management performance Turnover - --------------- --------------- ------------------------- ------------------- 2 Tuck-in Acquisition Bonus o 12-month measurement period using NOI vs. the deal pro-forma o 3-month grace period (longer periods may be set when the pro-forma is created) o Team Bonus- For team members who helped with integration- 20% of CEO bonus o Payout scale- see table below - ------------------------------------------------------------------ Franchise bonus % ---------------------------------- Actual NOI vs. Pro-forma Non-Targeted Targeted* - ------------------------------------------------------------------ % % Of NOI % Of NOI - ------------------------------------------------------------------ 80%- 99% 2% 4% 100%- 109% 3% 5% 110%-119% 4% 6% 120% and up 5% 7% - ------------------------------------------------------------------ *Acura, BMW, Honda, Lexus, Mercedes Benz, Toyota, Nissan