Chattem, Inc. Incentive Compensation Plan Description
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Summary
Chattem, Inc. has established an annual incentive compensation plan to reward and motivate key employees based on company and individual performance. The plan provides cash awards each year, determined primarily by the company's earnings per share and also considering individual contributions. Award amounts are set within competitive market ranges, with maximum awards for executives tied to a percentage of their base salary. The plan aims to offer a competitive pay package and encourage strong performance.
EX-10.54 5 exh10-54_15693.htm DESCRIPTION OF INCENTIVE COMPENSATION PLAN WWW.EXFILE.COM, INC. -- 888 ###-###-#### -- CHATTEM, INC. -- EXHIBIT 10.54 TO FORM 10-K
EXHIBIT 10.54
Incentive Compensation Plan
The Company’s annual incentive compensation plan is intended to assist the Company in rewarding and motivating key employees, focuses strongly on Company and individual performance, and provides a fully competitive compensation package to plan participants. As a pay-for-performance plan, cash incentive awards are paid annually based on the achievement of performance objectives for the year. Under the plan, each plan participant is provided a range of potential annual incentive awards based on competitive award levels in the marketplace. Actual awards paid under the plan are based on the Company’s corporate performance. Individual performance is also considered in determining actual award levels, but is assessed in a non-formulaic fashion. The incentive compensation plan performance objective is earnings per share performance against plan. The maximum incentive awards that could be awarded to the Company’s named executive officers pursuant to the incentive compensation plan are as follows: chairman and chief executive officer – (150% x annual base salary); president and chief operating officer - (100% x annual base salary); vice presidents - (60% x annual base salary).
