Montpelier Re Holdings Ltd. 2009 Annual Bonus Plan
Montpelier Re Holdings Ltd. established this 2009 Annual Bonus Plan to align employee performance with the interests of the company and its owners. All full-time employees are eligible to participate. The plan sets annual bonus pool targets based on company and individual performance, as determined by the Compensation and Nominating Committee. Bonus amounts are tied to performance groups and are calculated as a percentage of eligible salaries, with specific targets for officers and staff. The plan covers the 2009 calendar year, and bonuses are pro-rated for employees who worked part of the year.
Exhibit 10.28
Montpelier Re Holdings Ltd.
2009 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. At lower levels of the Company employee individual performance is also considered .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 2009 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-G |
| Minimum |
| 0% |
| 0% |
| 0% |
| On Target |
| 100% |
| 75% |
| 10-50% |
| Superior |
| 200% |
| 150% |
| 20-100% |
Eligible salaries for all officers and staff shall be equivalent to the 2009 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 2009 calendar year.
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