Mercury Executive Annual Bonus Program Summary
Mercury's Executive Bonus Program outlines how executives can earn additional cash compensation based on meeting personal, business unit, and corporate goals. The bonus amount depends on the executive's position, with target awards ranging from 35% to 70% of base salary, and is subject to annual changes. Bonuses are split between individual performance and financial results, with specific weightings for each role. For fiscal year 2009, the CEO's target bonus is 100% of base salary, with Senior and Corporate Vice Presidents receiving 50-60% and 40-50%, respectively.
EXHIBIT 10.7
Summary of Annual Bonus Program
Mercury’s Executive Bonus program provides additional cash compensation based on achieving personal, business unit and corporate goals. An executive’s individual bonus program is determined based on position, title, responsibilities, and total target cash compensation, and is subject to change from year to year.
Target Award as % of Base Salary
The target award ranges from 35% to 70% of base salary depending upon position.
| Position | Target Award % of base | ||
| CEO | 70 | % | |
| Senior VP | 40 to 50 | % | |
| Corporate VP | 35 to 45 | % |
Bonus Components
Bonus opportunities are comprised of two components:
| • | Individual (Management by Results—MBR) |
| • | Corporate or Business Unit Financial (Revenue and Profit) |
The target award % combines both MBR Bonus and the Corporate or Business Unit Financial Bonus and is weighted according to position. Financial based goals are established as part of the annual operating budget at the start of the fiscal year.
| Position | Corporate (Revenue & Profit) | Weightings% Individual/ Business Unit Financials (MBR) | ||
| CEO | 60 | 40 | ||
| Senior VP | 20 to 60 | 40 to 80 | ||
| Corporate VP | 20 to 60 | 40 to 80 |
For fiscal year 2009, the target award as a percentage of base salary for the CEO will be 100%; for Senior Vice Presidents will be 50-60%; and for Corporate Vice Presidents will be 40-50%. Also, for fiscal year 2009, the bonus components will be 75% for Corporate (Revenue & Profit) and 25% for Individual (MBR) for all positions.
