eResearchTechnology, Inc. 2005 Amended Bonus Plan Summary

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

eResearchTechnology, Inc. established a 2005 Amended Bonus Plan, effective July 1 to December 31, 2005, to reward employees for meeting specific business goals. All employees, except certain sales staff, are eligible. Bonuses are based on achieving targets such as revenues, net income, contract signings, and individual or departmental goals. Executive officers have set bonus opportunities tied to these targets, with a maximum payout of 150% of the target bonus. Bonuses are paid in cash after year-end, and the Compensation Committee can adjust payouts at its discretion.

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EX-10.10 4 ex10-10.txt EXHIBIT 10.10 Exhibit 10.10 ERESEARCHTECHNOLOGY, INC. 2005 AMENDED BONUS PLAN Set forth below is a summary of the 2005 Amended Bonus Plan approved by the Compensation Committee of the Board of Directors on July 26, 2005, to be effective from July 1, 2005 to December 31, 2005. The purpose of the plan is to promote the interests of the Company and its stockholders by providing employees with financial rewards upon achievement of specified business objectives, and to help the Company attract and retain employees by providing attractive compensation opportunities linked to performance results. All of the Company's employees are eligible to participate in the plan, subject in some cases to certain waiting periods and with the exception that certain sales personnel who participate in a separate commission incentive plan do not participate in the plan. In general, awards will be based upon the extent to which a specified combination of the following performance targets are achieved: o Revenues; o Net Income; o Signing Targets (revenues contemplated by contracts signed during the relevant period with customers other than two defined customers, regardless of when such revenues are actually recognized); o TPI Targets (revenues contemplated by contracts for Thorough Phase I programs signed during the relevant period with customers other than one defined customer, regardless of when such revenues are actually recognized); and o Departmental or individual performance goals. For some participants, these targets are further limited to results from the Company's international operations. The Compensation Committee establishes the departmental or individual performance goals for some or all of the Company's executive officers, while departmental supervisors establish the individual performance goals for other participants in their respective departments. Each participant in the plan has a targeted bonus opportunity, and a specified percentage of that opportunity relates to the extent to which each performance target applicable to the participant is achieved. For each performance target other than departmental or individual performance goals, the plan sets forth formulas for each participant to earn from 80% to up to 150% of the bonus opportunity specific to that performance target. As a result of the foregoing, the maximum bonus payable to a participant under the plan is 150% of the participant's bonus opportunity. The bonus opportunities and the related performance targets for each of the Companies' executive officers are as follows (not including departmental and individual performance goals):
PERCENTAGE OF BONUS BASED ON: ------------------------------------------- BONUS NET SIGNING TIP NAME POSITION OPPORTUNITY REVENUES INCOME TARGETS TARGETS - ---- -------- ----------- -------- ------ ------- ------- Joseph A. Esposito President, Chief $131,500 50% 50% - - Executive Officer and Director Joel Morganroth, MD(1) Chairman of the Board 55,500 50 50 - - of Directors and Chief Scientist Robert S. Brown Senior Vice President, 64,500 10 10 40 40 Outsourcing Partnerships Thomas P. Devine Senior Vice President 49,000 50 50 - - and Chief Development Officer Amy Furlong Senior Vice President, 37,500 50 50 - - Regulatory Compliance Scott Grisanti Senior Vice President, 67,500 10 10 80 - Business Development and Chief Marketing Officer Bruce Johnson Senior Vice President 57,500 50 50 - - and Chief Financial Officer Jeffrey S. Litwin, MD Senior Vice President 57,500 50 50 - - and Chief Medical Officer Anna Marie Pagliaccetti, Senior Vice President, 37,500 50 50 - - Esquire General Counsel and Secretary Vincent Renz Senior Vice President, 57,500 50 50 - - Client Services and Chief Technology Officer George Tiger(2) Senior Vice President, 52,500 12.5 12.5 12.5(3) 12.5(3) International Operations
- ------------ (1) Dr. Morganroth's bonus, if any, is earned by and paid to his professional corporation pursuant to the management consulting agreement between Joel Morganroth M.D., P.C. and the Company. (2) Mr. Tiger's performance targets also include international revenues (25%) and international operating income (25%). (3) Applies only to international signing targets and international TIP targets. 2 Bonuses are calculated based on the extent to which specified targets have been achieved. Once bonuses are calculated, for those executive officers of the Company in which goals were established by the Compensation Committee, the Compensation Committee determines the extent to which the departmental and individual performance goals have been achieved and whether the calculated bonus should be adjusted as a result. For all other participants, the participant's department supervisor makes this determination. Bonuses (if any) normally are paid within forty-five (45) days after the end of the fiscal year in which the bonuses were earned. Bonuses normally will be paid in cash in a single lump sum, subject to payroll taxes and tax withholdings. If a contract is cancelled, completed or otherwise terminated without the Company recognizing the revenues contemplated by a Signing Target or TPI Target based on which a bonus has been paid, then any portion of the bonus that would not have been paid had such unrecognized revenues not been included in the Signing Target or TPI Target, as applicable, will be deducted from any future bonus payable under the Plan or any future bonus plan and may, in the alternative, be deducted from other future compensation payable to the affected participant. Notwithstanding the performance targets and bonus opportunities specified in the plan, the Compensation Committee retains the discretion to adjust the amount of any bonus to be paid under the plan. 3