Summary of Annual Executive Bonus Program for Fiscal Year 2009
This document outlines the annual executive bonus program for fiscal year 2009, which provides cash bonuses to executives based on personal, business unit, and corporate financial performance. Bonus targets range from 40% to 100% of base salary, depending on the executive's position. The bonus is split between individual performance and financial results, with specific weightings for each role. Additional awards may be given if the company exceeds its operating income targets. The program's terms may change each year.
EXHIBIT 10.5
Summary of Annual Bonus Program For Fiscal Year 2009
Our annual executive bonus program provides cash compensation based on achieving personal, business unit, and corporate financial 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 Bonus
Target bonuses ranges from 40% to 100% of base salary depending upon position.
| Position | Target Award % of base | ||
| CEO | 100 | % | |
| Senior VP | 50 to 60 | % | |
| Corporate VP | 40 to 50 | % |
Bonus Components
Bonus opportunities are comprised of two components:
| • | Individual (Management-by-Results—MBR) performance; and |
| • | Corporate or Business Unit Financial performance. |
The target bonus % combines both MBR Bonus and 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.
| Weightings % | ||||
| Position | Corporate or Business Unit Financial Performance | Individual (MBR) Performance | ||
| Chief Executive Officer | 75 | 25 | ||
| Senior Vice President | 75 | 25 | ||
| Vice President | 75 | 25 | ||
Over-Achievement Awards
Over-achievement awards are a percentage of the over-achievement pool for the fiscal year. The size of the over-achievement pool is based on a formula and is determined based on a % of the amount, if any, by which actual operating income exceeds budgeted operating income for the fiscal year.
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