2014 Incentive Compensation Plan Agreement between Georgetown Bancorp Inc. and Robert E. Balletto
This agreement outlines the 2014 incentive compensation plan for Robert E. Balletto, President/CEO of Georgetown Bancorp Inc. It specifies his base salary, bonus targets, and performance goals related to asset quality, mortgage banking income, and efficiency ratio. Bonus payouts depend on meeting or exceeding budgeted targets, with additional rewards for surpassing stretch goals. Eligibility requires satisfactory job performance and active employment at payout. The company may reclaim bonuses if they were based on incorrect or restated financial information.
Exhibit 10.1
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| 2014 Incentive Compensation Plan |
| Employee Robert E. Balletto | 2014 Base Salary | $ | 194,000 |
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| Title President/CEO | 2014 Bonus Target | 18 | % | $ | 34,920 |
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Thresholds Maintain CAMELS rating at one of the two highest ratings
Maintain an Asset Quality rating of “Satisfactory” or better
Maintain Loan Quality Control rating at “Satisfactory” or better
Goal #1: Achieve Return on Assets
| Annual Payout Target | 30% | = | $ | 10,476 |
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| Payout |
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| Goals |
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| 95% of Budget |
| $ | 3,457 |
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| At Budget |
| $ | 6,914 |
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| 106% of Budget |
| $ | 10,476 |
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| Stretch Goal |
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| Every .03% over 106% of Budget |
| $ | 3,457 |
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Goal #2: Total Mortgage Banking Income
| Annual Payout Target | 30% | = | $ | 10,476 |
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| Payout |
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| Goals |
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| At Budget |
| $ | 5,238 |
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| 110% of Budget |
| $ | 10,476 |
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| Stretch Goal |
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| Every $118K over 110% of Budget |
| $ | 3,492 |
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Goal #3: Achieve Efficiency Ratio
| Annual Payout Target | 40% | = | $ | 13,968 |
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| Payout |
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| Goals |
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| 102% of Budget |
| $ | 4,656 |
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| At Budget |
| $ | 9,312 |
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| 97% of Budget |
| $ | 13,968 |
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| Stretch Goal |
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| Every 2% under 97% of Budget |
| $ | 4,656 |
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NOTES:
Bonus targets are based on Georgetown Bancorp Inc. 2014 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.
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| Robert E. Balletto |
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| Kathleen R. Sachs, Director |
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| Chair, Compensation Committee |
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