EXHIBIT 10.2 GEORGETOWN SAVINGS BANK INCENTIVE COMPENSATION PLAN 2012 GOALS
EXHIBIT 10.2
GEORGETOWN SAVINGS BANK
INCENTIVE COMPENSATION PLAN
2012 GOALS
Organizational Level: Executive
| Employee: | Joseph W. Kennedy | Incentive Target: | 11% ($14,502) | |
| Title: | Senior Vice President/Chief Financial Officer | Current Salary: | $131,840 |
The dollar figures presented in this example are estimates. Incentive payments will be based on the employee’s base compensation, which includes actual straight-time pay, jury duty, holiday, vacation, personal and sick pay for the 2012 calendar year. Overtime, bonus payments, base-bonuses, incentives and all other non-base pay compensation are excluded from this calculation
Minimum Thresholds
In order to receive payment for achievement of the goals listed below, the following thresholds must be met:
| 1. | CAMELS ratings must remain at one of the two highest ratings at all times during the Plan Year. This will be measured by the OCC. |
| 2. | Asset Quality must remain at a level of “Satisfactory” or better at all times during the Plan Year. This will be measured by both internal audit results and OCC rating. |
Tier 1: Bank-wide Performance
GOAL: #1: Profitability – Achieve ROA
Annual Payout Percentage: 60% = $8,702
|
Goals | Payout |
| 95% of budget | $2,901 |
| At budget | $5,801 |
| 106% of budget | $8,702 |
| Stretch Goal | |
| Every .03% over 106% of budget | $2,901 |
GOAL #2: Profitability – Achieve Efficiency Ratio
Annual Payout Percentage: 20% = $2,900
|
Goals | Payout |
| 102% of budget | $967 |
| At budget | $1,933 |
| 97% of budget | $2,900 |
| Stretch Goal | |
| Every 2% under 97% of budget | $967 |
Tier 2: Team Performance
GOAL #2: Profitability – Achieve Net Interest Margin Percentage
Annual Payout Percentage: 20% = $2,900
|
Goals | Payout |
| 98% of budget | $967 |
| At budget | $1,933 |
| 102% of budget | $2,900 |
| Stretch Goal | |
| Every .08% over 102% of budget | $967 |
Tier 3: Individual Performance
| Goals: | None |
Minimum Level of Expectations
To be eligible for this Incentive Compensation Plan the employee must meet the following:
| · | Performing at a satisfactory level or above, |
| · | Not on written warning, and |
| · | Actively employed at the time of the incentive payment. |
Clawback Provision
The Bank shall have the right to recoup or “clawback” awards paid under this Plan if the Compensation Committee concludes that such awards were based on information that was later found to be materially incorrect, including awards that were determined, in whole or part, on financial statement information that is subsequently restated.
The Bank reserves the right to change this Plan. You will be notified in advance of any changes.
