2005 Short-Term Incentive Plans: Profit Sharing Plan and Bonus Plan
EX-10.1 3 stplans.htm SHORT-TERM PLANS Short-Term Plans
Exhibit 10.1
ROWAN COMPANIES, INC.
2005 SHORT-TERM INCENTIVE PLANS
PROFIT SHARING PLAN
Eligibility All qualifying corporate or drilling division employees (approximately 330 total employees)
Measurement Drilling segment EBITDA as a percentage of revenues in excess of a minimum threshold
Criteria
Award Aggregate profit sharing amount based upon EBITDA allocated to participants in proportion to Base Pay
Cap Aggregate profit sharing amount may be capped at Board’s discretion
Base Pay Normal salary/wage compensation, including any overtime, less any bonus and value attributable to stock options
BONUS PLAN
Eligibility Executive and other officers, managers and certain key employees (approximately 80 total employees) arranged in six Tiers generally by salary and/or responsibility level
Measurement Drilling EBITDA relative to Budget
Criteria
Bonus Target Bonus Target varies from 15-75% of Base Pay depending upon the Tier
Award Zero to 200% of Bonus Target
Committee 25-40% of Award is subject to Committee discretion (30% for CEO/CAO):
Discretion
Offset Any Bonus Award is offset by Profit Sharing Award
[Information omitted regarding target levels with respect to specific quantitative or qualitative performance related-factors, or factors or criteria involving confidential commercial or business information, the disclosure of which would have an adverse effect on the registrant.]
