SharePlus Federal Bank 2010 Annual Incentive Plan for Executives and Managers 2010 AIP Design Overview
Exhibit 10.1
SharePlus Federal Bank
2010 Annual Incentive Plan for
Executives and Managers
2010 AIP Design Overview
| A. | Design Component | Description | ||
| • | Team Objective Weighting | 50% Weighting | ||
| • | Departmental/Individual Objective Weighting | 50% Weighting | ||
| B. | Team Objective (50%) | Pre-Tax Net Income | ||
| • | Pre-Tax Net Income will determine total funding of bonus pool | |||
| • | Pool may be reduced if the bank experiences unacceptable levels of delinquencies, classified assets or CAMELS ratings. | |||
| C. | Departmental/Individual Objective Weighting (50%) | |||
| • | Three (3) goals for each individual weighted at 75%, and five (5) core competencies weighted at 25% | |||
| D. | Payout/Performance | 100% Pre Tax AOP=100% payout* | ||
| • | Range of Payout* | 0-245% | ||
| • | Range of Performance* | 50%-300% of AOP Plan | ||
| • | Minimum Level Income to Qualify for 2010 Bonus | Minimum of 50% of 2009 AOP | ||
| • | Performance Kicker | TBD at year end | ||
| *(See 2010 Funding Model on following page) | ||||
| June 16, 2010 | Confidential | 2 |
2010
AIP Funding Model
| Performance BELOW Plan as % of AOP | 2010 AOP | Performance ABOVE Plan as % of 2009 AOP | |||||||||||||||||||||||
| 49% | 50% | 75% | 90% | 125% | 150% | 200% | 250% | 300% | |||||||||||||||||
| Pre Tax/Pre Bonus Net Income Plan | 649,544 | 662,800 | 994,201 | 1,193,041 | 1,325,601 | 1,657,001 | 1,988,401 | 2,651,201 | 3,314,002 | 3,976,802 | |||||||||||||||
| Total Bonus Pool (wo/tax) | 0 | 126,300 | 189,451 | 227,341 | 252,601 | 331,400 | 397,680 | 530,240 | 662,800 | 795,360 | |||||||||||||||
| Pre Tax Net Income (AOP) | 649,544 | 536,500 | 804,750 | 965,700 | 1,073,000 | 1,325,601 | 1,590,721 | 2,120,961 | 2,651,201 | 3,181,442 | |||||||||||||||
| MIN | MAX | ||||||||||||||||||||||||
| 100% AIP Target | |||||||||||||||||||||||||
| 252,601 | |||||||||||||||||||||||||
| Management Split at 50-100% of AOP | 19.06% | ||||||||||||||||||||||||
| Management Split Over 100% of AOP | 20.00 | % | 20.00 | % | 20.00 | % | 20.00 | % | 20.00 | % | |||||||||||||||
| • | Actual Bonus Pool Amount will be interpolated for performance between 50% to 300% of 2010 AOP Pre-Tax Net Income. |
| • | The 2010 target is not adjusted for the impact of a potential stock conversion or name change expenses, nor does it include other unbudgeted projects such as compensation consulting. |
| June 16, 2010 | Confidential | 3 |
2010 Participation
| Name | Participation Level | |
| Weaver | 30% | |
| Sanders | 25% | |
| Rowland | 20% | |
| Salls | 25% | |
| New Comm LO | 20% | |
| Stephens | 10% | |
| Rankin | 15% | |
| Erickson | 10% | |
| Campos | 10% | |
| Reynolds | 10% | |
| Dine | 10% | |
| Mayo | 10% |
| June 16, 2010 | Confidential | 4 |
Detail
| EMPLOYEE NAME Salary | Current Award | Formula Target 100% | Payout @ | |||||||
| • | Weaver | 246,500 | 30 | % | $ | 73,950 | ||||
| • | Sanders | 151,710 | 25 | % | $ | 37,928 | ||||
| • | Rowland | 144,135 | 20 | % | $ | 28,827 | ||||
| • | Salls | 139,192 | 25 | % | $ | 34,798 | ||||
| • | New CLO | 100,000 | 20 | % | $ | 20,000 | ||||
| • | Stephens | 73,868 | 10 | % | $ | 7,387 | ||||
| • | Rankin | 97,136 | 15 | % | $ | 14,570 | ||||
| • | Campos | 82,400 | 10 | % | $ | 8,240 | ||||
| • | Reynolds | 73,001 | 10 | % | $ | 7,300 | ||||
| • | Dine | 82,400 | 10 | % | $ | 8,240 | ||||
| • | Mayo | 45,629 | 10 | % | $ | 4,563 | ||||
| • | Erickson | 67,980 | 10 | % | $ | 6,798 | ||||
| • | Sub Tot | 896,584 | $ | 252,601 | ||||||
| • | Tax @ 7.65% | $ | 19,324 | |||||||
| • | Total | $ | 271,925 | |||||||
2010
AIP General Terms and Conditions
| • | The 2010 AIP Plan (the “Plan”) was designed by the Compensation Committee of the Board of Directors (BOD), and will be administered by the Compensation Committee. The Executive Committee of the BOD will provide CEO and Officer performance appraisal input to the Compensation Committee (the “Committee”) as part of the annual performance review process. |
| • | Participation in the 2010 AIP requires being in an eligible AIP position and being an employee in good standing at the conclusion of the performance period, which will be December 31, 2010. |
| • | The Committee will have the full authority to select employees who will participate in the Plan; determine the final awards; determine the terms and conditions of award opportunities in a manner consistent with the Plan and interpret the plan as needed. |
| • | Once established, performance goals normally will not be changed during the performance period. However, if the Committee determines that external changes or other unanticipated business conditions have materially affected the basis upon which the goals were set, then the Committee may approve appropriate adjustments to the performance goals (either up or down) during the performance period as such goals apply to the award opportunities of participants. |
| • | In addition, the Compensation Committee will have the authority to reduce, increase or eliminate the final award determinations, based upon any objective or subjective criteria it deems appropriate including but not limited to profitability, CAMEL ratings, asset quality ratios, peer group comparisons, or other financial or non-financial measures. |
| June 16, 2010 | Confidential | 6 |
