Management Bonus Plan for Company Management Personnel (December 2011 Revision)
This Management Bonus Plan outlines the eligibility and calculation of annual bonuses for management personnel. Eligible employees must have worked at least six months during the fiscal year, be actively employed at payment, or have retired under specific conditions. Bonuses are based on a matrix tied to company performance metrics and management categories, and are calculated as a percentage of base salary. Prorated bonuses apply for partial-year service or approved leaves. The plan aims to attract, retain, and motivate high-performing management staff.
EXHIBIT 10.7
Management Bonus Plan
Purpose:
Attract, retain and motivate management with exceptional ability.
Eligibility Requirements:
Management personnel 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 Good or higher on last performance evaluation
Calculations:
Bonus percentages are based on a Board approved matrix which consists of five company performance levels and five categories of management
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
Bonuses for those on an approved leave of absence, including disability, will be prorated based upon the number of full months actually worked during the fiscal year
Bonuses will be rounded to the nearest hundred — up or down
REVISED MANAGEMENT BONUS GUIDELINES
DECEMBER 2011
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| LEVEL 1 |
| LEVEL 2 |
| LEVEL 3 |
| LEVEL 4 |
| LEVEL 5 |
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| Return on Average Assets (ROAA) |
| .70% - .79% |
| .80% - .89% |
| .90% - .99% |
| 1.00% - 1.09% |
| > 1.09% |
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| Return on Average Equity (ROAE) |
| 5.00% - 6.99% |
| 7.00% - 8.99% |
| 9.00% - 9.99% |
| 10.00% - 10.99% |
| > 10.99% |
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| Return on Average Tang. Equity (ROATE) |
| 6.00% - 7.99% |
| 8.00% - 9.99% |
| 10.00% - 11.99% |
| 12.00% - 12.99% |
| > 12.99% |
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| % Growth in Earnings per Share |
| 8.00% - 8.99% |
| 9.00% - 9.99% |
| 10.00% - 10.99% |
| 11.00% - 11.99% |
| > 11.99% |
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| Retail Deposit Growth (Non-CD) |
| 1.00% - 1.99% |
| 2.00% - 2.99% |
| 3.00% - 3.99% |
| 4.00% - 4.99% |
| > 4.99% |
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| CATEGORY |
| RATING |
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| A |
| 4 |
| 10% |
| 15% |
| 20% |
| 25% |
| 30% |
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| CEO/Pres & |
| 3 |
| 8% |
| 12% |
| 16% |
| 20% |
| 24% |
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| EVPs |
| 2 |
| 0% |
| 0% |
| 0% |
| 0% |
| 0% |
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| 1 |
| 0% |
| 0% |
| 0% |
| 0% |
| 0% |
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| B |
| 4 |
| 8% |
| 13% |
| 18% |
| 23% |
| 27% |
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| SVPs |
| 3 |
| 6% |
| 10% |
| 14% |
| 18% |
| 21% |
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| 2 |
| 0% |
| 0% |
| 0% |
| 0% |
| 0% |
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| 1 |
| 0% |
| 0% |
| 0% |
| 0% |
| 0% |
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| C |
| 4 |
| 7% |
| 12% |
| 16% |
| 20% |
| 24% |
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| Region & |
| 3 |
| 6% |
| 10% |
| 14% |
| 17% |
| 21% |
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| Subsidiary |
| 2 |
| 4% |
| 7% |
| 9% |
| 11% |
| 13% |
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| Presidents |
| 1 |
| 0% |
| 0% |
| 0% |
| 0% |
| 0% |
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| D |
| 4 |
| 6% |
| 10% |
| 14% |
| 18% |
| 22% |
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| Employees |
| 3 |
| 5% |
| 8% |
| 12% |
| 15% |
| 18% |
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| in |
| 2 |
| 3% |
| 5% |
| 7% |
| 9% |
| 11% |
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| Grades 13 |
| 1 |
| 0% |
| 0% |
| 0% |
| 0% |
| 0% |
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| and above |
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| E |
| 4 |
| 5% |
| 8% |
| 12% |
| 16% |
| 20% |
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| Employees |
| 3 |
| 4% |
| 6% |
| 10% |
| 13% |
| 16% |
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| in |
| 2 |
| 2% |
| 3% |
| 5% |
| 7% |
| 8% |
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| Grades |
| 1 |
| 0% |
| 0% |
| 0% |
| 0% |
| 0% |
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| 9 - 12 |
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