Incentive Compensation Bonus Formula for Executive Officers (Approved February 2004)

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This document outlines the bonus formula for the CEO, President, COO, and CAO under the company's Incentive Compensation Plan. It specifies how annual cash bonuses and restricted stock awards are calculated based on each executive's improvement in economic profit, with different percentages and multipliers for each role. The value of outstanding unexercised stock options is deducted from the restricted stock component. The agreement was approved in February 2004 and applies to the named executive officers.

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EX-10.(Q)(3) 2 k93949exv10wxqyx3y.txt INCENTIVE COMPENSATION BONUS FORMULA EXHIBIT 10(q)(3) INCENTIVE COMPENSATION BONUS FORMULA APPROVED FEBRUARY 2004 The annual bonus and restricted stock formulas, under the Incentive Compensation Plan, for the Chief Executive Officer (CEO), President, Chief Operating Officer (COO) and Chief Analytics Officer (CAO) are as follows:
CEO PRESIDENT COO CAO --- --------- --- --- Cash component of annual bonus: Percentage of improvement in economic profit 5.0% 4.0% 2.5% 2.0% Restricted stock component of annual bonus: Multiple of cash component 3.5 3.5 1.5 1.5 Less: economic cost of outstanding stock options (A) (A) (A) (A)
(A) - Based on the unexercised stock options outstanding of the individual on the date of the restricted stock grant.