Mid-Wisconsin Financial Services, Inc. Incentive Compensation Plan for Executive Officers

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines an incentive compensation plan for executive officers of Mid-Wisconsin Financial Services, Inc. Awards are primarily based on the company's financial performance, specifically consolidated net income and return on average equity, with a portion tied to individual executive objectives. The Board of Directors has discretion over setting targets and determining awards, even if targets are not fully met. The plan specifies potential bonus percentages based on job title and performance, with no awards given unless minimum financial targets are achieved.

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EX-10.1 3 e101607a.txt EXHIBIT 10.1 - INCENTIVE COMPENSATION PLAN FOR EXECUTIVE OFFICERS Exhibit 10.1 Mid-Wisconsin Financial Services, Inc. Incentive Compensation Plan for Executive Officers The Incentive Compensation Plan for Executive Officers provides that 80% of the maximum award for each participant will be based on the achievement by the Company of targeted levels of consolidated net income and return on average equity, with the remaining 20% of the maximum award dependent upon the achievement of personal objectives that are directly related to the specific duties and job responsibilities of the individual executive. No participant shall be entitled to an award unless the Targeted level of earnings is achieved. The Board of Directors has discretion to award participants' payment under this Plan if Targeted levels of earnings and return on equity are not achieved. Incentive income based upon consolidated net income and return on average equity can be earned based on the following performance criteria: Consolidated Net Income** as % of Targeted Consolidated Net Income
ROE* As % of Targeted ROE 90% 92% 96% 100% 104% 108% 110% 93% 0 0 0 20 25 40 50 95% 0 0 0 30 35 47 60 97% 0 0 10 40 45 53 70 100% 0 0 20 50 55 60 80 104% 0 10 30 52 60 68 90 108% 0 20 40 55 65 76 100 110% 0 30 50 60 75 86 100 *Return on average equity **Consolidated net income amount includes expense associated with the plan
The Board has the discretion to set the Targeted level of earnings at an amount equal to or greater than the budgeted level of consolidated net income and return on equity for a given year. Also, the Board has discretion to include or exclude certain transactions from the calculations. The following table sets forth the range of incentive compensation, expressed as a percentage of base salary that can be earned under the plan. Potential Award as a Percentage of Base Salary
Threshold* Target Maximum President and CEO 9.0% 25% 50% Principal Financial Officer 7.2% 20% 40% Secretary 6.3% 17.5% 35% Vice President 4.5% 12.5% 25% * Assumes achievement of 50% of personal objectives and achievement of base financial performance objectives.