Montpelier Re Holdings Ltd. 2006 Annual Bonus Plan

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

Montpelier Re Holdings Ltd. has established a 2006 Annual Bonus Plan for all full-time employees, including its operating subsidiaries. The plan aims to align employee performance with company goals by offering annual bonuses based on performance targets set by the Compensation and Nominating Committee. Bonus pool targets are determined for different employee groups and are based on a percentage of eligible salaries. The final bonus amounts depend on company performance and are distributed with input from the CEO and approval from the Committee. Eligibility and bonus amounts are adjusted for employees who did not work the full year.

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EX-10.2 3 y15033exv10w2.htm EX-10.2: 2006 ANNUAL BONUS PLAN EX-10.2  

Exhibit 10.2
Montpelier Re Holdings Ltd.
2006 Annual Bonus Plan
Purpose
The purpose of this Plan is to increase the intrinsic business value of Montpelier Re Holdings Ltd. and its operating subsidiaries (the “Company”) by aligning employee performance with the interests of the Company’s owners. All full-time employees of the Company shall be eligible to participate in the Plan.
Performance Targets
The Plan shall be tied to a calendar year performance cycle consistent with the Company’s fiscal year. Annual bonus pool targets for categories of employees and an overall Company performance target under the Plan shall be set by the Company’s Compensation and Nominating Committee (the “Committee”). At the conclusion of the calendar year, the Committee shall judge Company performance against the bonus pool targets when determining the final size of the bonus pools and the level of payout for each employee. The Company’s Chief Executive Officer, in consultation with the Committee, shall then recommend the distribution of the pool to individual Plan participants who are non-executive officers of the Company. The Committee shall approve any payments to the Company’s executive officers.
Bonus Pool Targets
For the 2006 calendar year, the annual bonus pool targets for the Company’s officers and all remaining Company staff shall be the following percentages of eligible salaries:
             
Performance   Group A   Group B   Group C
Minimum   50%   37.5%   12.5%
On Target   100%   75%   25%
Superior   200%   150%   50%
Eligible salaries for all officers and staff shall be equivalent to the 2006 base salaries of Plan participants, pro-rated in the case of any officer or staff member employed by the Company for less than the entire 2006 calendar year.