Lake Sunapee Bank Group 2016 Named Executive Officer Incentive Plan

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines the 2016 incentive plan for named executive officers of Lake Sunapee Bank Group. The plan sets specific financial and performance goals, including net income, loan growth, asset quality, deposit growth, and individual objectives. Each goal has defined thresholds and corresponding incentive factors. To activate the plan, minimum levels for net income and individual goals must be met, along with maintaining acceptable regulatory ratings. Incentive payouts are based on the achievement of these targets, with higher performance resulting in greater rewards.

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EX-10.2 3 d134957dex102.htm EX-10.2 EX-10.2

Exhibit 10.2

Lake Sunapee Bank Group

Named Executive Officer Incentive Plan

2016 Goals

 

Goal

    Weight   12/31/2015    Threshold   Target   Superior

1) Net Income

    40%   $9,029,000    $9,200,000 to
$9,500,000		   $9,500,001 to
$10,000,000		   $10,000,001+
     Factor Available:    1.000%   2.000%   4.000%

2) Gross Loan Growth

    20%   $1,222,108,000    +$30 million
($1,252,000,000+)		   +$40 million
($1,262,000,000+)		   +$60 million
($1,322,000,000+)
     Factor Available:    0.50%   1.00%   2.00%

3) Asset Quality

    15%   0.49%    NPL/Loans < 1%   NPL/Loans < .50%   NPL/Loans < .35%
     Factor Available:    0.38%   0.75%   1.50%

4) Deposit Growth

    15%   $1,157,352,000    Increase of less than 4%   +4% Growth
(>$1,203,645,000)		   +5% Growth
(>$1,215,220,000)
     Factor Available:    0.38%   0.75%   1.50%

5) Individual Goals

    10%   Factor Available:    0.25%   0.500%   1.000%

Totals

    100%   Total Factor Available:    Maximum Threshold

 

2.50%

   Maximum Target

 

5.00%

   Maximum Superior

 

10.00%

 

* In order to activate the plan, the Threshold levels for Goals #1 and #5 must be obtained, and acceptable regulatory ratings maintained.
1) Net income: Consolidated Net Income, as reported in SEC Filings, including impact of incentive expense and all discretionary bonuses.
2) Gross Loan Growth: Growth of gross loans held in portfolio, as disclosed in SEC Filings, at 12/31/16 compared to gross loans held in portfolio at 12/31/15, as disclosed in SEC Filings.
3) Asset Quality is calculated by dividing the amount of Non-Performing Loans (NPL) to total loans at 12/31/16.
4) Deposit growth: Percent of growth comparing deposits, as disclosed in SEC Filings, at 12/31/16 compared deposits at 12/31/15, as disclosed in SEC Filings.
5) Three individual goals per Executive, with satisfactory completion (as determined by Executive’s respective reporting authority) of 1 of 3 necessary for Threshold; 2 of 3 for Target; and 3 of 3 for Superior.