Annual Bonus Program
Contract Categories:
Human Resources
- Bonus & Incentive Agreements
EX-10.01 2 f13675exv10w01.htm EXHIBIT 10.01 exv10w01
Exhibit 10.01
Annual Bonus Program
I. | Purpose: |
The Annual Bonus Program has been developed in order to reward employees for outstanding performance in achieving Diamonds short and long-term organizational objectives. The bonus program is designed to reward outstanding performance in achieving specified goals supporting Diamonds corporate objectives. The bonus period is the twelve-month period commencing in November or December each year, and is subject to the approval of Diamonds annual corporate objectives by the Board of Directors.
II. | Eligibility for Consideration: |
To be eligible for consideration for the bonus program, a participant must be employed by July 1 to participate in a partial program. The degree of participation to the program would be proportionate to the portion of the year in which the individual is employed by Diamond in excess of 6 months and period covered.
III. | Program Description: |
A. Supervisors will submit each employees annual goals which requires approval by the department vice president and the CEO/President.
B. Goal achievement will be measured on a scale of 0-200 consisting of key objectives. Each participant will define no more than 5 key objectives based on the strategic thrust of their individual position. The objectives should be challenging and measurable. At the beginning of the year, program objectives will be identified on a bonus plan appraisal form and approved by the President/CEO. Annual objectives for the President/CEO and other executive officers will be approved by the Board of Directors or the Compensation Committee.
As a guide:
Points | ||||||
Exceptional | 200 | |||||
Strong Performance | 150 | |||||
Meeting Expectation | 100 | |||||
Improvement Opportunity | 50 | |||||
Unsatisfactory | 0 |
A participants score may range from 0-200. Ratings below 75 reflect poor performance and
a rating above 150 denotes exceptionally strong performance. To
a rating above 150 denotes exceptionally strong performance. To
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determine bonus payment, a participants maximum bonus potential (established a percentage of base salary) is multiplied by the participants performance score divided by 200.
IV. | Approval Process: |
Each supervisor will tabulate the performance and the concurrent bonus awards, which is subsequently submitted to the respective department vice president and the CEO/President for ultimate approval. For employees other than the CEO/President and executive officers, the goals and objectives established and the earnings recommendation must be approved by both the department vice president and the CEO/President. Annual objectives and bonus payment for the President/CEO and other executive officers will be approved by the Board of Directors or the Compensation Committee.
V. | Calculation of Incentive Payment: |
The bonus payment is determined by multiplying the base salary of the individual employee by the percentage bonus calculation that has been determined for each participant.
VI. | Payment of Incentive Rewards: |
Bonuses under this Annual Bonus Program generally will be paid in December of each year, unless otherwise determined by the Board of Directors.
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