Annual Incentive Payment Criteria Agreement for Executive Officers
This document outlines the criteria for annual incentive payments to executive officers, including the CEO. Incentives are paid from a pool funded based on the company's performance against financial, non-financial, and strategic goals. Financial metrics include growth in pre-tax adjusted operating income, return on equity, revenues, and earnings per share. Non-financial and strategic factors include shareholder return, market performance, employee survey results, and competitive positioning. Bonus allocation among executives is discretionary, considering business performance, individual contributions, and market value of positions.
Exhibit 10.17
Annual Incentive Payment Criteria
For Executive Officers
Annual incentives for executive officers, including the CEO, are paid through a pool, which is funded based on an assessment of performance relative to financial, non-financial and strategic objectives. Financial performance is measured based on growth in pre-tax adjusted operating income (AOI), operating return on average equity on an AOI basis (operating return on required average equity for business units), operating revenues, and earnings per share on an AOI basis.
The non-financial and strategic objectives include the following:
| 1. | Total shareholder return relative to a peer group of companies. |
| 2. | Performance of the financial markets relative to plan assumptions. |
| 3. | Employee measures such as employee opinion survey results. |
| 4. | Strategic positioning relative to competitors. |
Allocation of incentive bonuses among executives is discretionary with consideration given to the pool size for the business(es) managed by the executive, individual performance and contribution, and value of the position in the marketplace.
