2010 CEO Short-Term Incentive Bonus Performance Goals Agreement – San Jose Water Company and CEO
This agreement outlines the performance goals for the Chief Executive Officer of San Jose Water Company for the 2010 fiscal year bonus. The CEO's bonus is based on achieving specific targets related to company return on equity, environmental compliance, and operational objectives. The total target bonus is $156,250, with actual payout ranging from 0% to 150% depending on performance. Key operational objectives will be set by March 30, 2010. The agreement specifies how bonus amounts are determined based on the level of goal achievement.
Exhibit 10.36
2010 PERFORMANCE GOALS FOR
CEO SHORT-TERM INCENTIVE BONUS
| Performance Criteria | Goals and Minimum and Maximum Thresholds | Allocation of Target Amount ($) (1) | |||
| San Jose Water Company ROE for 2010 Fiscal Year | Target Goal: 10.13%
Minimum Threshold: 8.63%
Maximum Goal: 11.13% | $ | 104,170 | ||
| Compliance (Environmental) | Maximum Goal: Zero water quality or other environmental violations (Goal and Minimum Threshold are not applicable). | $ | 26,040 | ||
| San Jose Water Company Operational Goals (2) | Target Goal: Achieve 80% of identified key water industry objectives measured primarily in terms of service, reliability and efficiency.
Minimum Threshold: Achieve 70% of identified water industry objectives.
Maximum Goal: Achieve 90% of identified key water industry objectives. | $ | 26,040 | ||
| 1) | The target 2010 annual cash bonus amount is equal to $156,250, which is 25 percent of Mr. Roth’s base salary per his employment agreement. The actual bonus may range from 0% to 150% of the target amount based on the Committee determination of the achievement of the performance goals: |
| • | If the goal is attained, 100 percent of the allocated amount will be paid. |
| • | If only the minimum threshold is attained, then 50 percent of the allocated amount will be paid. |
| • | If the maximum goal is attained, then 150 percent of the allocated amount will be paid. |
| • | Should the actual level of attainment of any such performance goal be between two of the designated levels, then the bonus potential will be interpolated on a straight-line basis. |
| 2) | The key water industry objectives will be established by March 30, 2010. |
