Virginia Financial Group, Inc. Executive Incentive Plan (Exhibit 10.11)
This agreement outlines the Executive Incentive Plan for executive managers at Virginia Financial Group, Inc. The plan sets performance targets for earnings per share (EPS) growth and organic revenue growth, each weighted at 50% of the total incentive. Executives are eligible for incentive payments if EPS growth exceeds 6% over the previous year, with a target of 10% growth. Revenue growth targets are similarly set at 10%, with payments capped for performance above this level. No incentive is paid if minimum thresholds are not met.
EXHIBIT 10.11
VIRGINIA FINANCIAL GROUP, INC.
INCENTIVE PLAN FOR EXECUTIVE MANAGERS
INCOME OBJECTIVE
EPS growth
Weighting - 50% of total incentive target
| • | Start payment threshold – 6.0% fully diluted EPS growth above 2004 actual. Note that 2005 EPS growth below 6% would result in no incentive payment against this objective. |
| • | Target Performance – 10% growth |
REVENUE GROWTH
Organic Growth in “Value Added” (Net Interest Income + Non-Interest Income - excluding gain/loss on sale of securities, but including revenue gains from acquisitions)
Weighting - 50% of total incentive target
| • | Start payment threshold established |
| • | Target Performance reflecting 10% growth) |
| • | Payout for performance above target is capped. |
