Georgetown Savings Bank 2011 Incentive Compensation Plan for Philip Bryan
This agreement outlines the 2011 incentive compensation plan for Philip Bryan, Senior Vice President/Retail Lending/CLO at Georgetown Savings Bank. The plan sets performance-based goals tied to profitability, net mortgage banking income, and interest rate spread, with a target incentive of 11% of base salary. Eligibility requires satisfactory job performance, no written warnings, and active employment at payout. The plan includes a clawback provision allowing the bank to recover payments if awards were based on materially incorrect information or restated financials.
Exhibit 10.16
GEORGETOWN SAVINGS BANK
INCENTIVE COMPENSATION PLAN
2011 GOALS
Updated, Effective 4/7/11
Organizational Level: Executive
| Employee: Philip Bryan |
| Incentive Target: 11% ($16,587) |
| Title: Senior Vice President/Retail Lending/CLO |
| Current Salary: $150,788 |
| 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 (excludes overtime and prior year’s Incentive Compensation Plan payments), jury duty, holiday, vacation, personal and sick pay for the 2011 calendar year. |
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 OTS.
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 OTS rating.
3. Loan Quality Control Reviews must be “Satisfactory” or better at all times during the Plan Year. This will be measured by internal audit results.
Tier 1: Bank-wide Performance
GOAL: #1: Profitability – Achieve ROA
Annual Payout Percentage: 20% = $3,317
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Goals
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Payout
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| 95% of budget = .74% | $1,106 |
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| At budget = .78% | $2,211 |
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| 106% of budget = .83% | $3,317 |
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| Stretch Goal |
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| Every .05% over .83% | $1,106 |
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Tier 2: Team Performance
GOAL #2: Profitability - Increase Net Mortgage Banking Income
Annual Payout Percentage: 60% = $9,953
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Goals |
Payout |
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| 98% of budget = $602,795 | $3,318 |
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| At budget = $615,097 | $6,635 |
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| 125% of budget = $768,871 | $9,953 |
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| Stretch Goal |
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| Every $153,774 over $768,871 | $3,318 |
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GOAL #3: Profitability - Achieve Core Interest Rate Spread
Annual Payout Percentage: 20% = $3,317
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Goals
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Payout
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| 97% of budget = 4.66% | $1,106 |
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| At budget = 4.80% | $2,211 |
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| 103% of budget = 4.94% | $3,317 |
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| Stretch Goal |
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| Every .14% over 4.94% | $1,106 |
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Tier 3: Individual Performance
Goal: 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.
By signing below I confirm receipt of my Incentive Compensation Plan and my understanding of the provisions stated above:
| /s/ Philip Bryan |
| 6/6/11 |
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| Employee’s Signature |
| Date |
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| /s/ Robert Balletto |
| 6/6/11 |
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| Supervising Officer’s Signature |
| Date |
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