MBNA Corporation Compensation Committee Framework for Annual Executive Officer Bonuses
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Summary
This document outlines MBNA Corporation's Compensation Committee framework for determining annual bonuses for its top five executive officers under the Senior Executive Performance Plan. Bonuses are based on corporate net income growth targets, with maximum bonus percentages tied to salary. Additional financial and non-financial goals are set to ensure sustainable performance, and bonuses may be reduced if these are not met. The Committee may also adjust bonuses based on individual achievements. The same framework applies to other senior management members.
EX-10.1 2 ex10_1.htm EXHIBIT 10.1 Exhibit 10.1
Exhibit 10.1
MBNA Corporation Compensation Committee—Framework for Annual Bonus Determinations to Executive Officers
The Compensation Committee’s framework for awarding annual bonuses to the top five paid executive officers pursuant to MBNA Corporation’s Senior Executive Performance Plan (the "Performance Plan") incorporates corporate and individual performance criteria. Pursuant to the framework, the Compensation Committee establishes a range of annual net income growth targets and assigns maximum bonus percentages (based on annual salary) to each target in the range. In addition, the Committee establishes additional financial goals (such as loan growth, new accounts and net credit losses) and non-financial business goals, to ensure that achievement of the net income targets for the year is based on the key performance drivers of the Corporation’s business and does not compromise future performance. Based on achievement of the additional goals, the Committee may reduce annual bonuses. The Committee may fur ther adjust annual bonuses based on individual achievement.
The Compensation Committee’s framework for awarding annual bonuses to members of senior management (other than the top five paid executive officers) is the same as the framework established under the Performance Plan for awarding bonuses to the top five paid executive officers.
