Mercury Executive Annual Bonus Program Summary (Approved July 27, 2004)
Mercury's Executive Bonus Program provides additional cash compensation to executives based on the achievement of personal, business unit, and corporate goals. The program sets target bonus awards as a percentage of base salary, ranging from 35% to 70% depending on the executive's position. Bonus payouts are determined by a combination of individual objectives and corporate financial performance, with the weighting of each component varying by role. The program is reviewed annually and may change from year to year.
EXHIBIT 10.3
Summary of Annual Bonus Program
(Approved July 27, 2004)
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 | 45 | % | |
| Corporate VP | 35 to 45 | % |
Bonus Components
Bonus opportunities are comprised of two components:
| • | Individual (Management by Objectives—MBO) |
| • | Corporate Financial (Revenue, Profit, & Working Capital) |
The target award % combines both MBO Bonus and the Corporate 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 (MBO) | ||
| CEO | 60 | 40 | ||
| Senior VP | 55 | 45 | ||
| Corporate VP | 0-50 | 50-100 |
