American Federal Savings Bank Bonus Plan Summary
This document outlines the American Federal Savings Bank Bonus Plan, which rewards employees based on the bank's after-tax net profitability and return on assets. Non-officer employees receive bonuses determined by their salary levels, while officers, executive officers, and the CEO receive bonuses calculated as a percentage of their annual base salary, directly tied to the bank's return on assets. The plan uses performance data from January through October, projected through December, to set bonus levels. The bonus percentages increase for higher-ranking officers, with the CEO receiving the highest multiplier.
Exhibit 10.20
Summary of American Federal Savings Bank Bonus Plan
The American Federal Savings Bank Bonus Plan (the “Bonus Plan”) is based on the after-tax net profitability of American Federal Savings Bank and is linked specifically to American Federal Savings Bank’s return on assets. In the case of non-officer employees, bonus amounts are based on salary levels. Under the Bonus Plan, American Federal Savings Bank’s actual return on assets for the period from January through October (and project through December) is used to determine the bonus levels of officers. Officers’ bonuses are directly linked to the return on assets. For example, if American Federal Savings Bank produces a return on assets of 0.90%, then each officer would receive a bonus of 9% of annual base salary. Executive officers’ bonuses are generally based on a formula of 1.25 times American Federal Savings Bank’s return on assets (for example, executive officer bonuses would be 11.25% of annual salary based on a return on assets of 0.90%, or 1.25 times nine). The President and Chief Executive Officer’s bonus is generally based on a formula of 1.5 times American Federal Savings Bank’s return on assets (for example, the CEO’s bonus would be 13.5% of annual salary based on a return on assets of 0.90%).
