Nationwide Performance Incentive Plan Description

Summary

Nationwide's Performance Incentive Plan (PIP), started in 1998, rewards certain management employees based on the performance of their company, business unit, and individual achievements over the past year. Incentives are determined by financial results, comparisons to peers, progress on strategic goals, and individual performance. Each participant receives a target incentive as a percentage of their base salary, set annually according to their role. The actual payout can range from nothing to an unlimited amount, depending on how well performance goals are met.

EX-10.9 9 l86388aex10-9.txt EXHIBIT 10.9 1 Exhibit 10.9 NATIONWIDE PERFORMANCE INCENTIVE PLAN GENERAL DESCRIPTION First implemented in 1998, Nationwide maintains the Performance Incentive Plan (the PIP), which covers certain management employees of the participating companies based on the achievement of measures tied to the performance of the relevant operating company, the relevant business unit and the individual participant over the preceding year. Performance measures are based on a broad series of key financial results, financial and operational comparison to external peer comparators, the extent of accomplishment of strategic initiatives, and other factors and results impacting organization performance, and further based upon individual employee performance. Under the PIP, participants are granted a target incentive amount that represents a percentage of the participant's base salary. The target is established annually and depends on the participant's position within the participating company. The actual amount received by the participant under the PIP ranges from zero to no maximum factor of the participant's base salary, depending solely on the achievement of the performance measures.