Heska Corporation 2012 Management Incentive Plan
Heska Corporation's 2012 Management Incentive Plan (MIP) outlines bonus opportunities for executives and managers based on their roles and base pay. The plan splits payouts equally between financial performance and strategic growth milestones, such as sales productivity and new product launches. Payouts depend on achieving specific operating income targets and milestone achievements, with maximum payouts capped unless otherwise decided by the Compensation Committee. The plan details how bonuses are calculated for each eligible position and under what conditions payments are made.
Exhibit 10.8
Heska Corporation
2012 Management Incentive Plan
| 1. | The Category Percentages for the 2012 MIP are as follows: |
| Title | Heska MIP | |
| Chief Executive Officer | 50.0% of base pay | |
| President | 35.0% of base pay | |
| Chief Financial Officer | 35.0% of base pay | |
| Executive Vice Presidents | 35.0% of base pay | |
| Vice Presidents | 35.0% of base pay | |
| Managing Directors | 25.0% of base pay | |
| Directors | 25.0% of base pay |
| 2. | The Plan Allocation for the 2012 MIP is as follows: |
50% on overall achievement of the Financial Performance Metric (“FPM”) and 50% on Strategic Growth Initiatives (“SGI”).
| 3. | The Key Parameters for the 2012 MIP are as follows: |
| • | Pre-MIP Operating Income – 50%. |
| • | Strategic Growth Initiative Milestone Achievement – 50%, as defined below. |
| • | Growth Initiative A—Sales Productivity |
| • | Milestone A: Achieve a 15% year-over-year growth in revenue productivity per average direct sales headcount. |
| • | Growth Initiative B—New Product Introductions |
| • | Milestone B1: Launch a new product by end of year 2012 |
| • | Milestone B2: Launch 2nd new product by end of year 2012 |
| • | Milestone B3: Launch 3rd new product by end of year 2012 |
Growth Initiative B milestones can be achieved through a new product launch of any product discussed at the December 12, 2011 meeting of the Compensation Committee of Heska Corporation’s Board of Directors:
| 4. | The Payout Structure for the 2012 MIP is as follows: |
| • | For FPM of Pre-MIP Operating Income see the table below. |
| • | For SGI, achievement of milestones and Pre-MIP Operating Income of $3,579,000, see the table below. Each milestone is worth 25% of the potential MIP payout for SGI. |
| • | Payouts for each parameter will be calculated independent of the success or failure of the other parameter. |
| • | Maximum MIP Payout for Proposed 2012 MIP for the financial metric parameter is paid at $8,947,500 of Pre-MIP Operating Income and 100% achievement of the five milestones for SGI. |
| • | For example, 100% achievement of the SGI milestones and $3,000,000 of Pre-MIP Operating Income would pay no MIP for either category. |
| • | In another example, achievement of 50% of the SGI milestones and $5,368,500 of Pre-MIP Operating Income would pay MIP of $289,500 for SGI and $289,500 for FPM. |
| • | Any MIP payment in excess of the Maximum MIP Payout shall be at the sole and absolute discretion of the Compensation Committee. |
Heska Corporation
2012 MIP Payout Table
| Operating Income Pre-MIP | Operating Income Post-MIP | FPM MIP Payout % | FPM MIP Amount | SGI Payout Amount* | Total Payout Amount | |||||||||||||||
| 3,579,000 | 3,000,000 | 0 | % | — | 579,000 | 579,000 | ||||||||||||||
| 3,936,900 | 3,300,000 | 10 | % | 57,900 | 579,000 | 636,900 | ||||||||||||||
| 4,294,800 | 3,600,000 | 20 | % | 115,800 | 579,000 | 694,800 | ||||||||||||||
| 4,652,700 | 3,900,000 | 30 | % | 173,700 | 579,000 | 752,700 | ||||||||||||||
| 5,010,600 | 4,200,000 | 40 | % | 231,600 | 579,000 | 810,600 | ||||||||||||||
| 5,368,500 | 4,500,000 | 50 | % | 289,500 | 579,000 | 868,500 | ||||||||||||||
| 5,726,400 | 4,800,000 | 60 | % | 347,400 | 579,000 | 926,400 | ||||||||||||||
| 6,084,300 | 5,100,000 | 70 | % | 405,300 | 579,000 | 984,300 | ||||||||||||||
| 6,442,200 | 5,400,000 | 80 | % | 463,200 | 579,000 | 1,042,200 | ||||||||||||||
| 6,800,100 | 5,700,000 | 90 | % | 521,100 | 579,000 | 1,100,100 | ||||||||||||||
| 7,158,000 | 6,000,000 | 100 | % | 579,000 | 579,000 | 1,158,000 | ||||||||||||||
| 7,515,900 | 6,300,000 | 110 | % | 636,900 | 579,000 | 1,215,900 | ||||||||||||||
| 7,873,800 | 6,600,000 | 120 | % | 694,800 | 579,000 | 1,273,800 | ||||||||||||||
| 8,231,700 | 6,900,000 | 130 | % | 752,700 | 579,000 | 1,331,700 | ||||||||||||||
| 8,589,600 | 7,200,000 | 140 | % | 810,600 | 579,000 | 1,389,600 | ||||||||||||||
| 8,947,500 | 7,500,000 | 150 | % | 868,500 | 579,000 | 1,447,500 | ||||||||||||||
| 8,947,500+ | 7,500,000 | Capped | ||||||||||||||||||
| * | Assumes 100% achievement of milestones. |
