2017 Annual Incentive Bonus Plan Description for Executive Officers
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Summary
This agreement outlines the 2017 Annual Incentive Bonus Plan approved by the company's Board for its executive officers. The plan offers annual cash bonuses based on achieving specific performance goals, with 50% tied to quarterly objectives and 50% to annual objectives. Performance metrics include revenue growth, earnings per share, operating profit, and return on invested capital, with additional business unit targets for some executives. Bonus opportunities are set as a percentage of base salary, and payouts depend on meeting or exceeding these targets, using adjusted, non-GAAP measures.
EX-10.02 2 flex-exx1002x7116.htm EXHIBIT 10.02 Exhibit
EXHIBIT 10.02
DESCRIPTION OF ANNUAL INCENTIVE BONUS PLAN FOR FISCAL 2017
On June 14, 2016, the Board approved the Company’s Annual Incentive Bonus Plan for fiscal year 2017. The plan provides its executive officers with the opportunity to earn annual cash bonuses based upon the achievement of pre-established performance goals. Total bonus opportunities will be based on achievement of annual targets. The plan provides for 50% of the bonus to be based on the achievement of quarterly objectives and 50% to be based on the achievement of annual objectives. Performance goals under the plan will be: revenue growth, earnings per share, operating profit, and return on invested capital targets at the Company level; and, additionally for certain executives, total sales, operating profit and new business wins and other business-specific business unit targets at the business unit level. The plan allows awards to provide for different metrics, target levels and weightings for different executives.
Under the Annual Incentive Bonus Plan, target award opportunities are set at various percentages of base salary, which will be: 200% of base salary in the case of the Chief Executive Officer; 110% of base salary in the case of the Chief Financial Officer; and between 80% and 110% of base salary in the cases of other officers. Actual payout opportunities for each bonus component will range from a threshold of 50% of target to a maximum of 200% of target for the quarterly payouts and 300% of target for the annual bonuses, in each case based on achievement of the performance measures. If the Company or business unit fails to achieve the threshold level for any performance measure, no payout is awarded for that measure. For purposes of determining achievement of award opportunities, the incentive bonus plan uses adjusted, non-GAAP measures.
