FCStone Group Inc. Executive Short-Term Incentive Plan (Effective FY 2007)
FCStone Group Inc. established an Executive Short-Term Incentive Plan for fiscal year 2007, targeting its CEO, COO, CFO, and select executive officers. The plan bases incentive payouts on the company's pretax Return on Equity (ROE), with specific formulas and thresholds. Executives are eligible for incentive payments as a percentage of their base salary, depending on their role and the company's achieved ROE, with no cap on the payout. The plan was approved by the Board in January 2007 and signed by the Chairman of the Compensation Committee.
EXHIBIT 10.8
FCStone Group Inc.
Executive Short Term Incentive Plan
Effective FY 2007
Performance Measure
| • | Executive short term incentive plan to be based on pretax Return on Equity |
Formula
| • | Return on Equity to be determined by: pretax operating income, adding back interest expense on subordinated debt, divided by average combined monthly equity (including ESOP stock) plus monthly subordinated debt. |
| • | Target incentive percentage at 15% ROE for current CEO, COO and CFO is 50% (Tier 1) of base salary. |
| • | Target incentive percentage at 15% ROE for Executive VP Clearing, VP NY Operations and VP – Controller/Treasurer is 40% (Tier II) of base salary. |
| • | Actual incentive percentage prorated based on the pretax ROE schedule as follows with no cap: |
| ROE% | 50% Tier I | 40% Tier II | ||||||
| Under 10% | 0 | 0 | ||||||
| Threshold | 10% | 25% | 20% | |||||
| Goal | 15% | 50% | 40% | |||||
| 20% | 75% | 60% | ||||||
| 25% | 100% | 80% | ||||||
| 30% | 126% | 101% | ||||||
| 35% | 151% | 121% | ||||||
| 40% | 176% | 141% | ||||||
| 45% | 201% | 161% | ||||||
| 50% | 226% | 181% |
Approved – January, 2007 Board Meeting
| /s/ Bruce Krehbiel | February 15, 2007 | |||||
| Bruce Krehbiel, Chairman of Compensation Committee | Date | |||||
