2016 Incentive Compensation Plan Agreement between Georgetown Bancorp Inc. and Joseph W. Kennedy
This agreement outlines the 2016 Incentive Compensation Plan for Joseph W. Kennedy, SVP/CFO of Georgetown Bancorp Inc. It specifies his base salary, bonus targets, and performance goals related to bank profitability, efficiency, and net interest margin. Eligibility for the bonus requires active employment, satisfactory performance, and not being on a written warning. The plan allows the company to reclaim bonuses if they were paid based on incorrect or restated financial information. Both Kennedy and the company's CEO have signed to acknowledge and accept the terms.
Exhibit 10.3
| | 2016 Incentive Compensation Plan |
| Effective January 1, 2016 | |
| Personal and Confidential |
| Employee | Joseph W. Kennedy | 2016 Base Salary | $ | 146,100 | |||
| Title | SVP/CFO | 2016 Bonus Target | 11 | % | $ | 16,071 | |
| Thresholds | Maintain CAMELS rating at one of the two highest ratings Maintain an Asset Quality Rating of "Satisfactory" or better | ||||||
|
Goal #1: |
Bank Profitability: Achieve Return on Assets |
|
|
|
| Annual Payout Target | 60% = $ 9,643 |
| Goals | Payout | |
| 98% of Budget | $ | 3,214 |
| At Budget | $ | 6,428 |
| 110% of Budget | $ | 9,643 |
| Stretch Goal | ||
| Every .03% over | ||
| 110% of Budget | $ | 3,214 |
|
Goal #2: |
Achieve Efficiency Ratio |
|
|
|
| Annual Payout Target | 20% = $ 3,214 |
| Goals | Payout | |
| 101% of Budget | $ | 1,071 |
| At Budget | $ | 2,143 |
| 97% of Budget | $ | 3,214 |
| Stretch Goal | ||
| Every 2% under | ||
| 97% of Budget | $ | 1,071 |
|
Goal #3: |
Achieve Net Interest Margin Percentage |
|
|
|
| Annual Payout Target | 20% = $ 3,214 |
| Goals | Payout | |
| 98% of Budget | $ | 1,071 |
| At Budget | $ | 2,143 |
| 102% of Budget | $ | 3,214 |
| Stretch Goal | ||
| Every 0.07% over | ||
| 102% of Budget | $ | 1,071 |
NOTES:
Bonus targets are based on Georgetown Bancorp Inc. 2016 budget.
All dollar figures are based on estimates of annualized salary. Incentive payments are based on the employee's actual base compensation for the fiscal year, which includes straight time pay, vacation, holiday, personal, sick and jury duty pay. Overtime and other payments including previous year's bonus payout will be excluded from the calculation.
To be eligible for the Incentive Compensation, the employee must be actively employed, performIng at a level of "satisfactory" or above, and not be on a written warning at the time of the incentive payment.
The Bank shall have the right to rescind and recoup or "clawback" incentive payments paid under this plan if the Compensation Committee concludes that such awards were paid out based on information that is later found to be materially incorrect, including payments that were determined, in whole or in part, on financial statement information that is subsequently restated.
By signing below I confirm receipt of my Incentive Compensation Plan and my understanding of the provisions stated above.
| /s/ Joseph W. Kennedy | April 25, 2016 | |
| Joseph W. Kennedy | Date | |
| /s/ Robert E. Balletto | April 25, 2016 | |
| Robert E. Balletto |
| Date |
| President and Chief Executive Officer |
