NCB Executive Long-Term Incentive Plan (2003–2005) for CEO and Key Executives
This agreement outlines the NCB Executive Long-Term Incentive Plan for the period from January 1, 2003, to December 31, 2005. It covers the CEO and several named executives, specifying performance-based cash awards tied to achieving set financial and business goals. Awards are based on metrics such as revenue from new customers, average return on equity, and total financial transactions. The plan details award percentages relative to base salary, with adjustments for low-income market development. The Compensation Committee oversees the plan, including participant selection and goal approval.
NCB Executive Long-Term Incentive Plan
Measurement Period 1/1/03 – 12/3/05
Approved by the Compensation Committee 7/28/03
The Executive Long Term Incentive Plan, as approved by the Board of Directors on July 31, 1999, delegates to the Compensation Committee the authority to approve the Measurement Period, the Employee Participants, the Performance-Based Cash Awards, and the Performance Goals.
A. The Measurement Period is the 3-year period from 1/01/2003 through 12/31/2005, and the Performance-Based Cash Awards, if any, will be granted every other year according to the following schedule:
| '99 |
| '00 |
| '01 |
| '02 |
| '03 |
| '04 |
| '05 |
| '06 |
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B. Employee Participants:
| CEO: |
| Charles E. Snyder |
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| Others: |
| Steven Brookner |
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| Patrick N. Connealy |
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| Charles H. Hackman |
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| Michele Fantt Harris |
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| Mark Hiltz |
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| Darrell M. Johnson |
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| Andrew Kho |
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| Kathleen Luzik |
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| Richard L. Reed |
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| Russell J. Schofield |
C. Performance-Based Cash Award Potential:
Annualized Award Opportunity at Select Performance
as % of Base Salary not including Low Income Adjustment
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| Threshold |
| Target |
| Superior |
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| CEO |
| 20% |
| 50% |
| 65% |
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| Other Participants |
| 15% |
| 30% |
| 45% |
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D. Performance Goals used to compute potential Performance-Based Cash Awards:
| PERFORMANCE GOALS |
| Weight |
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| Goals and Awards for the CEO | ||||
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| Threshold |
| Target |
| Superior | |||
| Value to Customers: Revenue from New Customers and Products |
| 35% |
| Goal |
| 20% of '05 Revenues from post '02 sources |
| 30% of '05 Revenues from post '02 sources |
| 50% of '05 Revenues from post '02 sources |
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| Award |
| 7% of Salary |
| 17.5% of Salary |
| 22.75% of Salary | ||
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| Financial Strength: Average ROE less NCBDC contribution over three years |
| 35% |
| Goal |
| 8% Average ROE |
| 9% Average ROE |
| 11% Average ROE |
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| Award |
| 7% of Salary |
| 17.5% of Salary |
| 22.75% of Salary | ||
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| Total commitments and financial transactions arranged for customers including loans, leases, letters of credit, private placements, and deals closed by referral sources. |
| 30% |
| Goal |
| $4 billion 2003 through 2005 |
| $4.5 billion 2003 through 2005 |
| $5.5 billion 2003 through 2005 |
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| Award |
| 6% of Salary |
| 15% of Salary |
| 19.5% of Salary | ||
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| 100% |
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| 20% of Salary |
| 50% of Salary |
| 65% of Salary |
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| Adjustment for Low Income Market Development |
| -15% of Total Award |
| +0% |
| +25% of Total Award | ||||
| PERFORMANCE GOALS |
| Weight |
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| Goals and Awards for Other Participants | ||||
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| Threshold |
| Target |
| Superior | |||
| Value to Customers: Revenue from New Customers and Products |
| 35% |
| Goal |
| 20% of '05 Revenues from post '02 sources |
| 30% of '05 Revenues from post '02 sources |
| 50% of '05 Revenues from post '02 sources |
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| Award |
| 5.25% of Salary |
| 10.5% of Salary |
| 15.75% of Salary | |
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| Financial Strength: Average ROE less NCBDC contribution over three years |
| 35% |
| Goal |
| 8% Average ROE |
| 9% Average ROE |
| 11% Average ROE |
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| Award |
| 5.25% of Salary |
| 10.5% of Salary |
| 15.75% of Salary | |
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| Total commitments and financial transactions arranged for customers including loans, leases, letters of credit, private placements, and deals closed by referral sources. |
| 30% |
| Goal |
| $4 billion 2003 through 2005 |
| $4.5 billion 2003 through 2005 |
| $5.5 billion 2003 through 2005 |
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| Award |
| 4.5% of Salary |
| 9% of Salary |
| 13.5% of Salary | ||
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| Totals |
| 100% |
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| 15% of Salary |
| 30% of Salary |
| 45% of Salary |
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| Adjustment for Low Income Market Development |
| -15% of Total Award |
| +0% |
| +25% of Total Award | ||||
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