2008 Annual Incentive Plan Criteria for Named Executive Officers
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Summary
This document outlines the criteria for the 2008 Annual Incentive Plan for named executive officers of the company. The plan rewards executives based on company-wide, business unit, and individual performance, with target award percentages set according to executive level. Payouts depend on performance levels, ranging from threshold to super-distinguished, and are calculated as a percentage of base salary. The company’s consolidated results are measured using a pro forma return on equity calculation. The plan specifies how performance is weighted and how awards are determined for each executive level.
EX-10.106 2 c22314exv10w106.htm ANNUAL INCENTIVE PLAN CRITERIA exv10w106
EXHIBIT 10.106
Fiscal Year 2008 Annual Incentive Plan Criteria
The Annual Incentive Plan rewards performance based upon consolidated, business unit and individual results. The named executive officers are assigned the following Target Award Percentage of their base salary for fiscal year 2008 Annual Incentive Awards:
Level | Target Award Percentage | |||
CEO | 110 | % | ||
13 | 95 | % | ||
12 | 75 | % | ||
11 | 65 | % |
Awards are based upon the consolidated results of the company and/or the individuals business unit results. The weighting factors for corporate and business unit performance for named executive officers is as follows:
Level | Corporate / Business Unit Weight | |||
CEO and Level 13 | 100% / 0 | % | ||
11-12 | 80% / 20 | % |
The payout multiple of a participants Target Award Percentage, depending upon whether threshold, target, distinguished or super-distinguished performance is achieved is as follows:
Payout Multiple of Target Award Percentage
Threshold | 25 | % | ||
Target | 100 | % | ||
Distinguished | 150 | % | ||
Super-Distinguished | 200 | % |
The consolidated results of the company shall be measured based upon a pro forma return on equity (ROE) calculation. ROE shall be calculated as consolidated net income divided by consolidated pro forma equity. |
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