Paychex, Inc. Officer Performance Incentive Program for Fiscal Year Ending May 31, 2009

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines Paychex, Inc.'s performance incentive program for its officers (excluding the CEO) for the fiscal year ending May 31, 2009. Eligible officers may receive a cash bonus based on meeting specific performance targets set by the Board of Directors, such as revenue and operating income growth. Senior Vice Presidents can earn up to 85% of their base salary, while other officers can earn up to 60%. Bonuses are paid in July 2009, provided the officer is still employed at fiscal year end. The Board may change or terminate the program at its discretion.

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EX-10.Y 6 l32343aexv10wy.htm EX-10(Y) PAYCHEX, INC. OFFICER PERFORMANCE INCENTIVE PROGRAM FOR THE YEAR ENDING MAY 31, 2009 EX-10(Y)
EXHIBIT 10(y)
Paychex, Inc.
OFFICER PERFORMANCE INCENTIVE PROGRAM
For the Year Ending May 31, 2009
PLAN DESCRIPTION
1.   Participants: Officers of Paychex, Inc., except for the Chief Executive Officer.
 
2.   The maximum incentive for the Senior Vice Presidents is 85% of base salary, and for all other Officers is 60% of base salary. The Chief Executive Officer is subject to a separate performance incentive program.
 
3.   Performance Criteria: The payment of cash bonus awards to participants shall be determined by the Board based on performance against targets established annually by the Board of Directors. The targets include year-over-year revenue growth, year-over-year growth in operating income excluding interest on funds held for clients, and improvement in operating income excluding interest on funds held for clients as a percentage of service revenues, and, for the Officers within sales, new business revenue. Qualitative targets are established annually, based on functions unique to the individual.
 
4.   Payment: Incentive payments to be paid in July 2009 after Board approval. Officer must be employed at the fiscal year end to be eligible for any bonus.
 
5.   Changes and Termination: Bonus awards, changes to and termination of the Program is at the sole discretion of the Board.