Performance Incentive Plan for Chairman & CEO Fresh Del Monte
Exhibit 10.2
Performance Incentive Plan for Chairman & CEO
Fresh Del Monte
2003
Revised: March 8, 2005
| I. | Overview |
Del Monte currently has an annual incentive plan for the Chairman & CEO, but it:
| • | Is based on total shareholder return (TSR) increases (year over year) |
| • | Based on only one (1) performance metric, which is the TSR |
| • | For Y2003 and beyond, year over year increases in TSRs may be difficult to sustain, especially given current economic conditions |
There is a pressing need to be competitive, ensuring that the Company can motivate the Chairman & CEO to continue to make the Company successful.
| II. | Objectives |
Following are the objectives of this program:
| 1. | To establish the performance measures for the Chairman & CEO’s Annual Incentive Plan. |
| 2. | To establish the award levels based on achievement of specific performance objectives. |
| III. | Eligibility – Selection Criteria |
This plan is for the Chairman & CEO only.
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| IV. | Performance Factors |
| 1. | The performance measures for the Chairman & CEO’s Annual Plan for Y2003 and beyond are as follows: |
| • | Earnings per share (EPS) : calculation of EPS will be based on US GAAP wherein any one time occurrences will be counted for or against EPS. |
| • | Return on Equity (ROE) : calculation will be based on the average of the beginning of year Shareholders’ Equity and the end of the year Shareholders’ Equity. |
| • | Revenue Growth (based on total corporate consolidated revenue): any acquisition during the year will be counted as long as there are no material effects on the overall revenues. For example, although the acquisition of Del Monte Foods is considered a major acquisition and occurred during the last quarter of 2004, the Foods numbers were included in the 2004 performance incentive calculation. |
| 2. | The performance measures will be based on the Annual Plan of the Company. This is the Consolidated Annual Forecast for the entire Company. |
| 3. | Each of the above performance measures will be weighted equally and the total average will be used as basis of performance. |
| 4. | The Company will measure performance annually at the end of the fiscal year. Results will be adjusted pro rata for reasons of qualified leave (i.e. disability or new hire). |
| 5. | Payment of incentive will be made after the conclusion of the performance period. This will usually occur after the announcement of the Annual Earnings of the Company. |
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Performance Levels & Corresponding Award
Payment of the incentive will be based on the following formula:
| Performance Levels | Award | |
| Below 80% | No payment | |
| Threshold Level: Achieves 80% of Target | 80% of target will be paid at 50% of base salary | |
| Between 81% to 99% of target | Will be paid based on attached worksheet | |
| Target Level: Achieves 100% of Target | Will be paid at 100% of base salary | |
| Between 101% to 119% | Will be paid based on attached worksheet | |
| Maximum Level: Achieves 120% of Target | Will be paid at 150% of base salary | |
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| Calculation of Chairman’s Bonus | ||||
| % of Target | Bonus % Amount | Payment | ||
| 80 | 50.00 | 600,000.00 | ||
| 81 | 52.50 | 630,000.00 | ||
| 82 | 55.00 | 660,000.00 | ||
| 83 | 57.50 | 690,000.00 | ||
| 84 | 60.00 | 720,000.00 | ||
| 85 | 62.50 | 750,000.00 | ||
| 86 | 65.00 | 780,000.00 | ||
| 87 | 67.50 | 810,000.00 | ||
| 88 | 70.00 | 840,000.00 | ||
| 89 | 72.50 | 870,000.00 | ||
| 90 | 75.00 | 900,000.00 | ||
| 91 | 77.50 | 930,000.00 | ||
| 92 | 80.00 | 960,000.00 | ||
| 93 | 82.50 | 990,000.00 | ||
| 94 | 85.00 | 1,020,000.00 | ||
| 95 | 87.50 | 1,050,000.00 | ||
| 96 | 90.00 | 1,080,000.00 | ||
| 97 | 92.50 | 1,110,000.00 | ||
| 98 | 95.00 | 1,140,000.00 | ||
| 99 | 97.50 | 1,170,000.00 | ||
| 100 | 100.00 | 1,200,000.00 | ||
| 101 | 102.50 | 1,230,000.00 | ||
| 102 | 105.00 | 1,260,000.00 | ||
| 103 | 107.50 | 1,290,000.00 | ||
| 104 | 110.00 | 1,320,000.00 | ||
| 105 | 112.50 | 1,350,000.00 | ||
| 106 | 115.00 | 1,380,000.00 | ||
| 107 | 117.50 | 1,410,000.00 | ||
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| 108 | 120.00 | 1,440,000.00 | ||
| 109 | 122.50 | 1,470,000.00 | ||
| 110 | 125.00 | 1,500,000.00 | ||
| 111 | 127.50 | 1,530,000.00 | ||
| 112 | 130.00 | 1,560,000.00 | ||
| 113 | 132.50 | 1,590,000.00 | ||
| 114 | 135.00 | 1,620,000.00 | ||
| 115 | 137.50 | 1,650,000.00 | ||
| 116 | 140.00 | 1,680,000.00 | ||
| 117 | 142.50 | 1,710,000.00 | ||
| 118 | 145.00 | 1,740,000.00 | ||
| 119 | 147.50 | 1,770,000.00 | ||
| 120 | 150.00 | 1,800,000.00 |
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