2013 Incentive Compensation Plan for Chief Operating Officer, effective January 1, 2013
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Human Resources
- Bonus & Incentive Agreements
EX-10.3 4 ex10_3.htm EXHIBIT 10.3
Exhibit 10.3
CHIEF OPERATING OFFICER
Effective: January 1, 2013
CHIEF OPERATING OFFICER
PURPOSE: To define the compensation plan for the CHIEF OPERATING OFFICER.
SCOPE: Perma-Fix Environmental Services, Inc.
POLICY: The Compensation Plan is designed to retain, motivate and reward the incumbent to support and achieve the business, operating and financial objectives of Perma-Fix Environmental Services, Inc. (the “Company”).
BASE SALARY: The Base Salary indicated below is paid in equal periodic installments per the regularly scheduled payroll.
PERFORMANCE INCENTIVE COMPENSATION: Performance Incentive Compensation is available based on the Company’s financial results noted in Schedule A. Effective date of plan is January 1, 2013. Performance incentive compensation will be paid on or about 90 days after year-end, or sooner, based on final Form 10-K financial statement.
SEPARATION: If employment is separated prior to the annual incentive compensation payment date as noted above, no incentive compensation is due to the incumbent.
ACKNOWLEDGEMENT: Payment of Performance Incentive Compensation of any type will be forfeited, unless the Human Resources Department has received a signed acknowledgement of receipt of the Compensation Plan prior to the applicable payment date.
INTERPRETATIONS: The Compensation Committee of the Board of Directors retains the right to modify, change or terminate the Compensation Plan at any time and for any reason. It also reserves the right to determine the final interpretation of any provision contained in the Compensation Plan and it reserves the right to modify or change the Revenue and EBITDA Targets as defined herein in the event of the sale or disposition of any of the assets of the Company. While the plan is intended to represent all situations and circumstances, some issues may not easily be addressed. The Compensation Committee will endeavor to review all standard and non-standard issues related to the Compensation Plan and will provide quick interpretations that are in the best interest of the Company, its shareholders and the incumbent.
CHIEF OPERATING OFFICER
Base Pay and Performance Incentive Compensation Targets
The compensation for the below named individual as follows:
| Annualized Base Pay: | $ | 252,350 | ||
| Performance Incentive Compensation Target (at 100% of Plan): | $ | 126,175 | ||
| Total Annual Target Compensation (at 100% of Plan): | $ | 378,525 |
The Performance Incentive Compensation Target is based on the schedule A below.
| Target Objectives | ||||||||||||||||||||||||||||||||
| | Performance Target Thresholds | |||||||||||||||||||||||||||||||
| | Weights | 85-100% | 101-120% | 121-130% | 131-140% | 141-150% | 151-160% | 161%+ | ||||||||||||||||||||||||
| | ||||||||||||||||||||||||||||||||
| Revenue | 15 | % | 18,926 | 22,712 | 24,604 | 26,497 | 28,389 | 30,282 | 33,121 | |||||||||||||||||||||||
| | ||||||||||||||||||||||||||||||||
| EBITDA | 55 | % | 69,397 | 83,277 | 90,216 | 97,156 | 104,096 | 111,036 | 121,445 | |||||||||||||||||||||||
| | ||||||||||||||||||||||||||||||||
| Health & Safety | 15 | % | 18,926 | 22,712 | 24,604 | 26,497 | 28,389 | 30,282 | 33,121 | |||||||||||||||||||||||
| | ||||||||||||||||||||||||||||||||
| Permit & License Violations | 15 | % | 18,926 | 22,712 | 24,604 | 26,497 | 28,389 | 30,282 | 33,121 | |||||||||||||||||||||||
| | ||||||||||||||||||||||||||||||||
| | 126,175 | 151,413 | 164,028 | 176,647 | 189,263 | 201,882 | 220,808 | |||||||||||||||||||||||||
| 1) | Revenue is defined as the total consolidated third party top line revenue from continuing operations as publicly reported in the Company’s financial statements. The percentage achieved is determined by comparing the actual consolidated revenue from continuing operations to the Board approved Revenue Target from continuing operations, which is $126,190,000. The Board reserves the right to modify or change the Revenue Targets as defined herein in the event of the sale or disposition of any of the assets of the Company or in the event of an acquisition. |
| 2) | EBITDA is defined as earnings before interest, taxes, depreciation, and amortization from continuing operations. The percentage achieved is determined by comparing the actual EBITDA to the Board approved EBITDA Target, which is $9,567,000. The Board reserves the right to make adjustments to the EBITDA Target to account for the unique accounting treatment of fair market value of percentage of completion contracts resulting from the acquisition of Safety and Ecology Holdings Corporation and its subsidiaries (“SEC”). |
| 3) | The Health and Safety Incentive target is based upon the actual number of Worker’s Compensation Lost Time Accidents, as provided by the Company’s Worker’s Compensation carrier. The Corporate Treasurer will submit a report on a quarterly basis documenting and confirming the number of Worker’s Compensation Lost Time Accidents, supported by the AIG Worker’s Compensation Loss Report. Such claims will be identified on the loss report as “indemnity claims.” The following number of Worker’s Compensation Lost Time Accidents and corresponding Performance Target Thresholds has been established for the annual Incentive Compensation Plan calculation for 2013. |
| Work Comp. Claim Number | | Performance Target |
| 7 | | 85% - 100% |
| 6 | | 101% - 120% |
| 5 | | 121% - 130% |
| 4 | | 131% - 140% |
| 3 | | 141% - 150% |
| 2 | | 151% - 160% |
| 1 | | 161% Plus |
| 4) | Permits or License Violations incentive is earned/determined according to the scale set forth below: An “official notice of non-compliance” is defined as an official communication from a local, state, or federal regulatory authority alleging one or more violations of an otherwise applicable Environmental, Health or Safety requirement or permit provision, which results in a facility’s implementation of corrective action(s). |
| Permit and License Violations | | Performance Target |
| 7 | | 85% - 100% |
| 6 | | 101% - 120% |
| 5 | | 121% - 130% |
| 4 | | 131% - 140% |
| 3 | | 141% - 150% |
| 2 | | 151% - 160% |
| 1 | | 161% Plus |
| | | |
| 5) | No performance incentive compensation will be payable for achieving the health and safety, permit and license violation, and revenue targets unless a minimum of 70% of the EBITDA Target is achieved. |
Performance Incentive Compensation Payment
Effective date of plan is January 1, 2013. Performance incentive compensation will be paid on or about 90 days after year-end, or sooner, based on final Form 10-K financial statement.
ACKNOWLEDGMENT:
I acknowledge receipt of the aforementioned Chief Operating Officer 2013 - Compensation Plan. I have read and understand and accept employment under the terms and conditions set forth therein.
| /s/James Blankenhorn | | 6/12/2013 | | |
| /S/ James A. Blankenhorn | | Date | | |
| | | | | |
| /s/Mark Zwecker | | 6/12/2013 | | |
| /S/ Board of Directors | | Date | | |
