Prudential Savings Bank 2007 Employee Bonus Program Description

Summary

Prudential Savings Bank's Board of Directors set up a $220,000 bonus pool for fiscal year 2007, representing about 6.5% of the company's net income. After deducting $1,250 for part-time employees, the remaining pool is distributed among full-time employees based on a service factor tied to their years of service. Senior executives have a higher, fixed service factor. Each employee's share of the bonus is calculated by multiplying their service factor by their base salary, ensuring longer-serving and higher-paid employees receive a larger portion.

EX-10.1 2 exhibit10-1.htm EXHIBIT 10.1 exhibit10-1.htm

Exhibit 10.1

Description of Prudential Savings Bank's 2007 Bonus Program

For fiscal 2007, the Compensation Committee of the Board of Directors of Prudential Savings Bank (the "Bank") established a bonus pool of $220,000 based on approximately 6.5% of the Company's net income for the fiscal year. The bonus pool was reduced by $1,250 paid to part-time employees. All full time employees of the Bank are allocated a service factor based on their years of service as follows:

Service Factor		Years of Service
	0.5	Up To 1 Year
	1.0	1 To 3 Years
	1.5	Over 3 To 5 Years
	2.0	Over 5 To 10 Years
	2.5	Over 10 To 20 Years
	3.0	Over 20 Years

Messrs. Thomas Vento, President and Chief Executive Officer, and Joseph Corrato, Executive Vice President and Chief Financial Officer, have a fixed service factor of 4.0. Each individual's service factor is then multiplied by the employee's base salary to determine the proportionate allocation of the bonus pool among all full time employees.