Georgetown Savings Bank Incentive Compensation Plan Agreement with Robert E. Balletto (July–December 2010)

Summary

This agreement outlines the incentive compensation plan for Robert E. Balletto, President and CEO of Georgetown Savings Bank, for the period from July 1 to December 31, 2010. The plan sets specific performance goals related to profitability, efficiency, and business planning, with incentive payments based on achieving these targets. Eligibility requires satisfactory job performance, no written warnings, and active employment at the time of payment. Minimum thresholds for bank ratings and asset quality must also be met for any payout.

EX-10.1 2 ex10-1.htm EXHIBIT 10.1 ex10-1.htm

EXHIBIT 10.1

GEORGETOWN SAVINGS BANK

INCENTIVE COMPENSATION PLAN

GOALS FOR JULY 1, 2010 – DECEMBER 31, 2010

Organizational Level: Executive

Employee:	Robert E. Balletto	Incentive Target (6-months): 18% ($16,601)
Title:	President and Chief Executive Officer

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), jury duty, holiday, vacation, personal and sick pay for the period of July 1, 2010 through December 31, 2010.

Minimum Thresholds

In order to receive payment for achievement of the goals listed below, the following thresholds must be met:

CAMELS ratings must be at a rating of “2” or better at all time during the Plan Year. This will be measured by both internal audit results and OTS rating.

Asset Quality must be at a level of “Satisfactory” or better at all time during the Plan Year. This will be measured by both internal audit results and OTS rating.

Tier 1: Bank-wide Performance

GOAL: #1: Profitability – Achieve Return on Assets (ROA)

Payout Percentage: 55% = $9,131

Goals	Payout
95% of budget	$3,044
At budget	$6,087
110% of budget	$9,131
Stretch Goal
Every .05% over 110% of budget	$3,044

GOAL: #2: Profitability – Achieve Efficiency Ratio

Payout Percentage: 25% = $4,150

Goals	Payout
At budget	$2,767
97% of budget	$4,150
Stretch Goal
Every 2% under 97% of budget	$1,383

Tier 2: Team Performance

GOAL: #3: Prepare and present a Business Plan to address the strategic initiative of increasing local commercial loan growth that meets the approval of the Board of Directors no later than December 20, 2010.

Payout Percentage: 20% = $3,320

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.