NCB Executive Management Short Term Incentive Plan for 2008

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines NCB's 2008 Short Term Incentive Plan for executive management, including the CEO and Executive Council members. Incentive awards are based on meeting or exceeding pretax net income targets, maintaining non-performing assets below 1.5% of total assets, and achieving a 'Best Efforts' evaluation in mission banking. Awards are calculated as a percentage of year-end base salary, with additional bonuses for surpassing income targets. Only executives employed by NCB on February 15, 2009, are eligible for payment. The Compensation Committee determines the CEO's award, while the CEO decides awards for other executives.

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EX-10.38 9 w51896exv10w38.htm EXHIBIT 10.38 exv10w38  

Exhibit 10.38
Approved by the Board of Directors 2/1/08
NCB EXECUTIVE MANAGEMENT
SHORT TERM INCENTIVE PLAN for 2008
1. Grow Core Profitability
  A.   Meet pretax net income budget.
 
  B.   No award is earned under this plan if pretax net income is below budget.
2. Risk Management
  A.   No award is earned under this plan if non-performing assets exceed 1.5% of total consolidated assets at year end.
3. Mission Banking
  A.   No award is earned under this plan unless “Best Efforts” evaluation is achieved.
Awards
                         
  Incentive Award as a Percentage
    Of Year End 2008 Base Salary
Pretax Net Income           Executive Council   CEO
Budget
   Up to     20 %     25 %
$23 Million
   Up to     35 %     45 %
          The award for the CEO and Executive Council will be adjusted upward proportionately for pretax net income between budget and the target of $23 million.
          In addition, an “Add-on” award may be earned by exceeding the pretax net income target of $23 million. The maximum additional award is 5% of salary for the CEO and 7.5% of salary for the Executive Council. For each 1% that pretax net income exceeds the $23 million target, 1% of salary is added to the award earned, up to a maximum total award of 50% of salary for the CEO and 42.5% of salary for the Executive Council.
          The CEO determines incentive awards for each Executive Council participant based upon the results of this plan and the achievement of individual performance objectives. The Compensation Committee determines the award for the CEO.
          Any awards under the Short Term Incentive Plan shall be paid on February 15, 2009 and only to participants who are employed by NCB on February 15, 2009.
          PARTICIPANTS
          Snyder, Brookner, Connealy, Fannon, Hackman, Harris, Hiltz, Luzik, and Reed