FTS International, Inc. 2017 Short-Term Incentive Plan Description for Executive Officers
FTS International, Inc. established a 2017 short-term incentive plan (STIP) to motivate and retain employees, including named executive officers. The plan offers quarterly cash bonuses based on achieving specific financial, safety, and departmental performance targets. Each executive's bonus is a set percentage of their base salary, with payouts determined by performance against quarterly goals. Payments depend on meeting minimum financial targets, and no executive is guaranteed a bonus. The plan aims to align employee performance with company objectives and adapt to changing business conditions.
Exhibit 10.12
FTS International, Inc.
Description of 2017 Short-Term Incentive Plans
In December 2016, the board of directors approved a 2017 short-term incentive plan, or STIP, to motivate employees to drive outstanding company performance, provide flexibility given the uncertain business environment and improve employee retention. The named executive officers are eligible to participate.
The STIP provides for quarterly cash incentives contingent on achievement of quarterly metrics consisting of:
· Financial targets for Adjusted EBITDA;
· Safety performance as measured by our total recordable incident rate, or TRIR; and
· Department key performance indicators, or KPIs.
Each named executive officer has an annual bonus target award calculated as a percentage of his base salary, depending on his position, as set forth in the following table:
| Name |
| Target Award |
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| Michael J. Doss |
| 100 | % |
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| Buddy Petersen |
| 80 | % |
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| Perry A. Harris |
| 60 | % |
The payouts for the named executive officers under the STIP are based 55% on the financial target, 20% on the safety target and 25% on KPIs. The targets are reset quarterly. The board has set the financial and KPI targets for the first quarter of 2017. All incentive payments are contingent upon the minimum financial targets being achieved. No named executive officer is guaranteed a payment under the STIP.
