2017 Incentive Compensation Bonus Plan for Named Executive Officers and CEO
This agreement outlines the 2017 bonus plan for the CEO and other named executive officers of the company. Bonuses are based on achieving specific financial and operational goals, including pre-tax net income, loan growth, non-interest expense, core deposits, and asset quality. Depending on performance, executives can earn cash and equity awards as a percentage of their base salary, with the CEO eligible for up to 50% in cash and 25% in equity, and other executives up to 25% in each. The plan excludes certain non-recurring items and is subject to the Compensation Committee’s discretion.
Exhibit 10.1
| 2017 Incentive Compensation Bonus Plan |
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| Named Executive Goal Level |
| CEO Goal Level | ||||||||||
| Metric |
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| ($ in millions) |
| ($ in millions) | ||||||||
| # | Metric Description | Weight |
| 1 | 2 | 3 | 4 | 5 |
| 1 | 2 | 3 | 4 | 5 |
| 1 | Pre-tax net income* | 30% |
| $ 6.600 | $ 7.100 | $ 7.600 | $ 8.100 | $ 8.600 |
| $ 6.600 | $ 7.100 | $ 7.600 | $ 8.100 | $ 8.600 |
| % of base pay to be earned in cash | 0.0% | 1.88% | 3.75% | 5.63% | 7.50% | 0.0% | 3.75% | 7.50% | 11.25% | 15.00% | ||||
| % of base pay to be earned in equity | 0.0% | 1.88% | 3.75% | 5.63% | 7.50% | 0.0% | 1.88% | 3.75% | 5.63% | 7.50% | ||||
| 2 | Loan growth | 20% |
| $ 650.000 | $ 665.000 | $ 675.000 | $ 685.000 | $ 700.000 |
| $ 650.000 | $ 665.000 | $ 675.000 | $ 685.000 | $ 700.000 |
| % of base pay to be earned in cash | 0.0% | 1.25% | 2.50% | 3.75% | 5.00% | 0.0% | 2.50% | 5.00% | 7.50% | 10.00% | ||||
| % of base pay to be earned in equity | 0.0% | 1.25% | 2.50% | 3.75% | 5.00% | 0.0% | 1.25% | 2.50% | 3.75% | 5.00% | ||||
| 3 | Non-interest expense* | 15% |
| $ 30.200 | $ 29.450 | $ 28.700 | $ 27.950 | $ 27.200 |
| $ 30.200 | $ 29.450 | $ 28.700 | $ 27.950 | $ 27.200 |
| % of base pay to be earned in cash | 0.0% | 0.94% | 1.88% | 2.81% | 3.75% | 0.0% | 1.88% | 3.75% | 5.63% | 7.50% | ||||
| % of base pay to be earned in equity | 0.0% | 0.94% | 1.88% | 2.81% | 3.75% | 0.0% | 0.94% | 1.88% | 2.81% | 3.75% | ||||
| 4 | Core deposits** | 20% |
| $ 407.000 | $ 420.000 | $ 432.000 | $ 452.000 | $ 472.000 |
| $ 407.000 | $ 420.000 | $ 432.000 | $ 452.000 | $ 472.000 |
| % of base pay to be earned in cash | 0.0% | 1.25% | 2.50% | 3.75% | 5.00% | 0.0% | 2.50% | 5.00% | 7.50% | 10.00% | ||||
| % of base pay to be earned in equity | 0.0% | 1.25% | 2.50% | 3.75% | 5.00% | 0.0% | 1.25% | 2.50% | 3.75% | 5.00% | ||||
| 5 | Asset quality*** | 15% |
| 35% | 30% | 25% | 20% | 15% |
| 35% | 30% | 25% | 20% | 15% |
| % of base pay to be earned in cash | 0.0% | 0.94% | 1.88% | 2.81% | 3.75% | 0.0% | 1.88% | 3.75% | 5.63% | 7.50% | ||||
| % of base pay to be earned in equity | 0.0% | 0.94% | 1.88% | 2.81% | 3.75% | 0.0% | 0.94% | 1.88% | 2.81% | 3.75% | ||||
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| Max Cash Award as % of Salary |
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| 0.00% | 6.25% | 12.50% | 18.75% | 25.00% |
| 0.00% | 12.50% | 25.00% | 37.50% | 50.00% |
| Max Equity Award as % of Salary |
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| 0.00% | 6.25% | 12.50% | 18.75% | 25.00% | 0.00% | 6.25% | 12.50% | 18.75% | 25.00% | ||
Plan is based on 5 key performance metrics at bank level – no points earned for first column of achievement.
Up to 50% of base pay may be earned in cash bonus and up to 25% of base pay may be earned in share-based compensation for CEO; 25% for other named executive officers.
*Excludes gain on sale of securities, OTTI charges, and other non-recurring items as determined at the Compensation Committee’s discretion.
**Total Deposits excluding CD and IRA CD
***Classified assets to capital (substandard loans + OREO)/(Tier 1 equity capital + ALLL)
