Peoples State Bank Focus Rewards Plan for Executive Officers
This agreement outlines the annual cash incentive plan for executive officers of PSB Holdings, Inc., acting as officers of Peoples State Bank. The plan bases 80% of the incentive on the Bank’s net income target and 20% on the achievement of specific bank-wide financial and non-financial goals. Incentive compensation is paid in cash after the fiscal year, with the amount determined by a formula tied to performance against these targets. The agreement details how different levels of achievement affect the percentage of base salary paid as incentive.
Exhibit 10.1
Peoples State Bank
Focus Rewards Plan for Executive Officers
The Focus Rewards Plan for Executive Officers provides an annual cash incentive opportunity for executive officers of PSB Holdings, Inc. in their capacities as Bank officers. Incentive compensation is determined under a formula that derives 80% of the incentive compensation amount from the achievement of the Banks net income target and 20% from the achievement of specific Bank-wide financial and non-financial goals. The following table illustrates the potential incentive compensation at various levels of net income and selected levels of achievement of specific goals. Incentive compensation is paid in cash following the determination of results under the plan for the preceding fiscal year.
% of Targeted Net Income | % of Specific Bank-Wide Goals Achieved | ||||||
Before Bank-Wide Year-End Incentive Expense | 25% | 50% | 75% | 100% | |||
Incentive Compensation as a Percentage of Base Salary | |||||||
Less than 95% | 0.5% | 1.0% | 1.5% | 2.0% | |||
95% | 2.1% | 2.6% | 3.1% | 3.6% | |||
97% | 3.7% | 4.2% | 4.7% | 5.2% | |||
98% | 5.3% | 5.8% | 6.3% | 6.8% | |||
99% | 6.9% | 7.4% | 7.9% | 8.4% | |||
100% | 8.5% | 9.0% | 9.5% | 10.0% | |||
102% | 10.6% | 11.3% | 11.9% | 12.5% | |||
104% | 13.6% | 14.4% | 15.2% | 16.0% | |||
106% | 17.0% | 18.0% | 19.0% | 20.0% | |||
108% | 21.3% | 22.5% | 23.8% | 25.0% | |||
110% | 25.5% | 27.0% | 28.5% | 30.0% |