Annual Performance Award Plan

EX-10.4 2 exhibit104-annualperfo.htm EX-10.4 Document


Northwest Bank
Annual Performance Award Plan

To attract, retain and motivate eligible employees

Eligibility Requirements:
Certain positions at a specified level are eligible for consideration
Employed by the company for a minimum of six months of the fiscal year
Be actively employed by the company at the time of payment or retired between the last day of the fiscal year and the payment date. Retirees must meet the definition of normal retirement – sixty-five years old with a minimum of five years of service with the company
Rated fully met expectations or higher on their last performance evaluation
Recipients must have a restrictive covenant in place prior to payment
Corporate Senior Vice Presidents and higher must agree to Northwest’s Claw Back Policy

Bonus percentages are based on a Board approved matrix which consists of five company performance levels, seven categories of eligible participants and their performance rating
Bonuses will be calculated on base salaries as of the last day of the fiscal year
Bonuses will be prorated for those with six but less than 12 months of service in the fiscal year and those promoted to an eligible position during the fiscal year

Target Bonus % of Salary & Payout Range
Target Bonus % Salary100%
Threshold % Target50%
Maximum % Target150%

Gate* (Minimum Performance Necessary for Possibility of Payout) -
both metrics must be achieved
Net Charge-offs0.50%0.25%
Total Delinquency3.00%1.50%

Payout Metrics*
(Performance Range for Annual Performance
Award Payout, Assuming Gates are Satisfied)
EPS Growth15%6.0%8.0%10.0%
Efficiency Ratio15%64.0%62.0%60.0%
Deposit Growth20%2.0%3.0%4.0%
Strategic / Individual Performance20%345
Total Weighting100%

*Compensation Committee of the Board of Directors has discretion regarding both the gate and metrics

Annual Performance Award Payout % of Salary
Job RoleBelow Threshold - 0%Threshold - 50%Target - 100%Maximum - 150%
Production SEVPs & EVPs0.0%20.0%40.0%60.0%
Infrastructure SEVPs & EVPs0.0%17.5%35.0%52.5%