School Specialty, Inc. Management Incentive Plan for Fiscal 2015

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

School Specialty, Inc. has established a Management Incentive Plan (MIP) for fiscal year 2015 to provide cash bonuses to senior leaders and directors based on the company's Operating EBITDA performance. Eligible participants must be employed at the time of payment, and payouts are determined by the company's final EBITDA results, with no payout for results below $50 million and a maximum payout capped at 200% of the target. The Board of Directors approves the final payout, and payments are made within 90 days after the fiscal year ends.

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EX-10.3 4 exh103.htm MANAGEMENT INCENTIVE PLAN FOR FISCAL 2015



Exhibit 10.3

Management Incentive Plan (MIP) Recommendation to Board of Directors


Purpose:

Provide a cash incentive program for the leadership of School Specialty

 

 

Goal:

Gain 100% alignment and engagement from senior leaders around the CEO priorities:  1) stabilize our business; 2) align
our infrastructure better and lower our costs; 3) improve our bottom line performance.

 

 

Structure:

Essentially, this is the Incentive Bonus Plan structure (as of June 1, 2007) that has been in place previously

 

 

Cost:

At current staffing levels of eligible participants (73 total), annual cost at Target  = $3,300,000

 

 

Payout:

Payout Percentage will be determined by the FY2015 final results with payout occurring within 90 days from the close
of the fiscal year

 

 

Target/Metric:

The MIP for F2015 will be based on a single metric of Operating EBITDA with the following thresholds and Scale:


 

 

Threshold

Target

Maximum

 

% achievement

96.2%

100%

119.2%

 

EBITDA

$50.0M

$52.0M

$62.0M

 

% Payout(1)

50%

100%

200%


(1) This represents the percentage of an individual target based on the salary grade level of the participant


Other Specifics:

Additional Comments on the plan include:


 

√

Participant must be employed with company on date of payment.

 

√

Board of Directors will approve final payout percentage

 

√

Target represents Budget

 

√

Participants are director level and up (range on target as % of base =- 15% to 100%)

 

√

No payout for EBITDA achievement below $50M; program capped at 200% achievement