Summary of Amendments to Hudson Highland Group, Inc. 2007 Incentive Compensation Program
Hudson Highland Group, Inc. has amended its 2007 Incentive Compensation Program. The changes affect how performance bonuses are calculated for executive officers and corporate staff, except for the CEO and CFO, whose bonus formula remains unchanged. Now, bonuses for other executives and staff are based on achieving EBIT targets and thresholds by region (North America, Europe, Australia/New Zealand, Asia) and corporate performance, with specific percentages assigned to each area. A slightly different formula applies to other corporate staff members.
EXHIBIT 10.1
Summary of amendments to the Hudson Highland Group, Inc. 2007 Incentive Compensation Program
The following is a summary of the amendments to the Hudson Highland Group, Inc. (the “Company”) 2007 Incentive Compensation Program.
Previous formula for calculating performance bonuses:
| • | Achievement of a single corporate earnings before income tax (“EBIT”) target measured in both dollars and as a percentage of revenue is required to earn a 100% payout and achievement of a single corporate EBIT threshold measured in both dollars and as a percentage of revenue is required to earn a 50% payout. |
New formula for calculating performance bonuses:
| • | With respect to performance bonuses for Jon F. Chait, the Company’s Chief Executive Officer, and Mary Jane Raymond, the Company’s Chief Financial Officer, there has been no modification to the previous formula. |
| • | With respect to performance bonuses for executive officers and corporate staff of the Company other than Mr. Chait and Ms. Raymond, the bonus will be earned by tranche based on dollars of EBIT and EBIT as a percentage of revenue results by region, with a tranche also for corporate performance, as follows: |
| ° | 21% on North America’s EBIT target and threshold |
| ° | 21% on Europe’s EBIT target and threshold |
| ° | 21% on Australia/New Zealand’s EBIT target and threshold |
| ° | 7% on Asia’s EBIT target and threshold |
| ° | 30% on Corporate EBIT target and threshold |
A slightly modified formula will apply to the other corporate staff members.
