Paychex, Inc. Officer Performance Incentive Program for Fiscal Year Ending May 31, 2008

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

Paychex, Inc. established a performance incentive program for its officers (excluding the CEO) for the fiscal year ending May 31, 2008. Eligible officers can earn a cash bonus of up to 85% or 60% of their base salary, depending on their position. Bonuses are based on meeting specific financial and qualitative targets set by the Board of Directors. Payments are made in July 2008, provided the officer is still employed at the end of the fiscal year. The Board retains full discretion to change or terminate the program at any time.

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EX-10.U 4 l26913aexv10wu.htm EX-10(U) PAYCHEX, INC. OFFICER PERFORMANCE INCENTIVE PROGRAM FOR THE YEAR ENDING MAY 31, 2008 EX-10(u)  

EXHIBIT 10(u)
Paychex, Inc.
OFFICER PERFORMANCE INCENTIVE PROGRAM
For the Year Ending May 31, 2008
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 2008 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.