San Jose Water Company 2009 CEO Bonus Performance Goals Agreement
This agreement outlines the performance goals for the Chief Executive Officer of San Jose Water Company for the 2009 fiscal year bonus. The CEO's bonus is based on achieving specific targets related to return on equity, environmental compliance, and operational objectives. The bonus amount can range from 0% to 150% of the target, depending on the level of goal achievement, with clear thresholds and criteria set for each category. The agreement specifies the target bonus as 25% of the CEO's base salary, with detailed allocation for each performance area.
Exhibit 10.1
PERFORMANCE GOALS FOR THE CHIEF EXECUTIVE OFFICER’S
2009 FISCAL YEAR BONUS
| Performance Criteria | Goals and Minimum and Maximum Thresholds | Allocation of Target Amount ($) (1) | |||
| San Jose Water Company Return on Equity for the 2009 Fiscal Year | Target Goal: 10.13%
Minimum Threshold: At least 9.13%
Maximum Goal: At least 11.13% | $ | 79,170 | ||
| Compliance (Environmental) | Maximum Goal: Zero water quality or other environmental violations (Target Goal and Minimum Threshold are not applicable). | $ | 19,790 | ||
| 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. | $ | 19,790 | ||
| (1) | The 2009 target bonus amount is equal to $118,750 (or 25 percent of Mr. Roth’s base salary) which is the level of target bonus provided pursuant to his employment agreement. Mr. Roth’s 2009 base salary is $475,000. The actual bonus may range from 0 percent to 150 percent 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 31, 2009. |
