FCStone Group, Inc. Staff Incentive Plan (Effective FY 2007)
FCStone Group, Inc. established a staff incentive plan for fiscal year 2007, linking employee bonuses to the company's pretax return on equity (ROE). The plan outlines how ROE is calculated and sets target incentive percentages for different staff positions, ranging from 6% to 30% of base salary. Actual awards are determined at the company's discretion but are capped according to a set formula based on ROE performance. The plan was approved by the Board in January 2007 and signed by the Chairman of the Compensation Committee.
Exhibit 10.10
FCStone Group, Inc.
Staff Incentive Plan
Effective FY 2007
Performance Measure
| • | Staff 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. |
| • | Return on Equity for 100% of target incentive percentages is between 20% to 25%. Actual target incentive percentage will be prorated based on the pretax ROE schedule as follows: |
| ROE % | % of Target | |
| Under 10% | 0 | |
| 10% | 50% | |
| 15% | 75% | |
| 17.5% | 87.5% | |
| 20% | 100% | |
| 25% | 100% | |
| 30% | 120% | |
| 35% | 140% | |
| 40% | 160% | |
| 45% | 180% | |
| 50% | 200% |
| • | Staff target percentages as a percentage of base salary are as follows: |
| Position | Target % | |
| Runners | 6% | |
| Clearing Offices | 8% | |
| Commercial Offices / Clerical | 10% | |
| Managers | 15% | |
| Selected Managers | 20% | |
| Selected Officers | 30% |
| • | Individual plan awards are entirely subjective and discretionary but overall plan awards are limited to above total calculation. |
Approved – January, 2007 Board Meeting
| /s/ Bruce Krehbiel | February 15, 2007 | |
| Bruce Krehbiel, Chairman of Compensation Committee | Date |
