MutualFirst Financial, Inc. 2006 Executive Officer Salary and Bonus Arrangements
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Summary
MutualFirst Financial, Inc. and Mutual Federal Savings Bank have set 2006 base salaries and a cash bonus plan for their named executive officers. The bonus plan awards cash incentives if the company meets or exceeds certain performance targets, such as loan growth and net interest margin. Bonus amounts are calculated as a percentage of each executive's salary, with payout percentages varying by position and increasing if performance exceeds expectations. The agreement outlines the specific salaries and expected bonus percentages for each executive for 2006.
EX-10.1 2 ex10-1.htm
Named Executive Officer Salary and Bonus Arrangements for 2006
Base Salaries
The base salaries for 2006 for the executive officers (the "named executive officers") of MutualFirst Financial, Inc. (the "Company") and Mutual Federal Savings Bank who will be named in the compensation table that will appear in the Company's upcoming 2006 annual meeting proxy statement are as follows:
Description of 2006 Bonus Plan
The Company has established a cash incentive bonus plan for all officers and employees of the Company and the Bank. Bonuses will be paid under this bonus plan, if and to the extent the Company's performance quarterly meets or exceeds minimum levels on certain key performance indicators, including loan and deposit growth, net interest margin, fee income, number of customers, number of deposit accounts, the ratio of non-performing loans to total assets, net charge-offs and general and administrative expenses.
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The key performance indicators used to determine whether any bonuses will be paid under the bonus plan will be the same for all employees. The amounts of the bonuses under the bonus plan will be determined by multiplying the employee's salary by the employee's payout percentage. While the payout percentages vary from employee to employee, they will increase proportionately for all employees if and to the extent the Company attains a performance level above the minimum threshold. Performance thresholds and key performance indicators have been set for 2006 ("2006 Bonus Plan"). The expected payout percentages for the named executive officers under the 2006 bonus plan, if the Company meets the expected performance levels are as follows:
Depending on whether the Company's actual performance is above or below the expected performance level, these percentages may differ from the stated amounts.
End.
EXHIBIT 10.1
Named Executive Officer Salary and Bonus Arrangements for 2006
Base Salaries
The base salaries for 2006 for the executive officers (the "named executive officers") of MutualFirst Financial, Inc. (the "Company") and Mutual Federal Savings Bank who will be named in the compensation table that will appear in the Company's upcoming 2006 annual meeting proxy statement are as follows:
| Name and Title | Base Salary |
| David W. Heeter President and Chief Executive Officer of the Company | $225,000 |
| Patrick C. Botts Executive Vice President of the Company and President and Chief Operating Officer of the Bank | $182,000 |
| Timothy J. McArdle Chief Financial Officer of the Company and the Bank | $166,500 |
| Steven R. Campbell Senior Vice President of the Bank | $155,000 |
| Steven C. Selby Senior Vice President of the Bank | $144,000 |
Description of 2006 Bonus Plan
The Company has established a cash incentive bonus plan for all officers and employees of the Company and the Bank. Bonuses will be paid under this bonus plan, if and to the extent the Company's performance quarterly meets or exceeds minimum levels on certain key performance indicators, including loan and deposit growth, net interest margin, fee income, number of customers, number of deposit accounts, the ratio of non-performing loans to total assets, net charge-offs and general and administrative expenses.
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The key performance indicators used to determine whether any bonuses will be paid under the bonus plan will be the same for all employees. The amounts of the bonuses under the bonus plan will be determined by multiplying the employee's salary by the employee's payout percentage. While the payout percentages vary from employee to employee, they will increase proportionately for all employees if and to the extent the Company attains a performance level above the minimum threshold. Performance thresholds and key performance indicators have been set for 2006 ("2006 Bonus Plan"). The expected payout percentages for the named executive officers under the 2006 bonus plan, if the Company meets the expected performance levels are as follows:
| Name and Title | Payout Percentage at Expected Performance Level |
| David W. Heeter President and Chief Executive Officer of the Company | 11.4% |
| Patrick C. Botts Executive Vice President of the Company and President and Chief Operating Officer of the Bank | 10.5% |
| Timothy J. McArdle Chief Financial Officer of the Company and the Bank | 9.5% |
| Steven R. Campbell Senior Vice President of the Bank | 9.5% |
| Steven C. Selby Senior Vice President of the Bank | 9.5% |
Depending on whether the Company's actual performance is above or below the expected performance level, these percentages may differ from the stated amounts.
End.
