2016 Cash Incentive Compensation Plan for Executive Officers and Vice Presidents
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Summary
This agreement outlines the 2016 Cash Incentive Compensation Plan for the company's Vice Presidents and Executive Officers. The plan covers performance during the 2016 fiscal year and bases cash bonuses on revenue, earnings-per-share, and impact goals. Bonus amounts vary by position and are calculated according to specific performance targets, with higher payouts for exceeding goals. Executive Officers' bonuses are tied to corporate goals, while Vice Presidents' bonuses are partly based on individual goals. Minimum performance thresholds must be met for any payout.
EX-10.1 2 exhibit101cashicp.htm EXHIBIT 10.1 Exhibit
Exhibit 10.1
2016 Cash Incentive Compensation Plan
Eligible Employees: All non-Section 16 officers (“Vice Presidents”) and senior executives (Section 16) officers (“Executive Officers”) of the Company are eligible for participation in the Company’s 2016 Cash Incentive Compensation Plan.
Applicable Period: The 2016 Cash Incentive Plan applies to performance during the Company’s fiscal year ending December 31, 2016.
Components of the Plan and Criteria to Fund: The 2016 Cash Incentive Compensation Plan consists of the following four components (1) revenue performance on core products, (2) revenue performance on new products, (3) earnings- per-share, and (4) defined impact goals. Each component of the 2016 Cash Incentive Compensation Plan includes targets at minimum, plan, and maximum payout. The minimum targets serve as the threshold upon which the incentive pool will begin to fund for that component. Achievement of the components at plan/target will earn the target cash incentive opportunity. Payout will be calculated along a linear continuum from minimum to plan/target and from plan/target to maximum with the maximum target serving as the point at which the management team will earn the highest possible cash incentive opportunity.
The minimum performance target must be met in order for a portion of the bonus to be paid relative to any one of the four components. Each component will be measured separately. Bonus payout to Executive Officers will be based seventy (70%) percent on achievement of revenue and earnings-per-share goals and thirty (30%) percent on corporate impact goals. Bonus payout to Vice Presidents will be based seventy (70%) percent on achievement of revenue and earnings-per-share goals and thirty (30%) percent on individual impact goals.
The following table below represents the target bonus and maximum bonus for each of the Company’s Vice Presidents and above and as a percent of such employee’s annual base salary.
Executive Officer | Target | Maximum | |
President and CEO | 125% | 150% | |
Executive Officers (other than President and CEO) | 75% | 90% | |
Vice Presidents | 50% | 60% |