2004 Executive and Management Incentive Plan

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines the 2004 Executive and Management Incentive Plan, which sets out how incentive payments are determined for executives and managers. Payments are based 60% on business financial results and 40% on individual performance against annual objectives. Financial performance is measured by bookings, revenue, and operating profit, with payments made quarterly. Individual objectives are agreed upon at the start of the year and paid annually. The Compensation Committee may award additional bonuses based on exceptional results. Payouts depend on achieving at least 90% of targets, and the company may limit payments based on overall results.

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EX-10.8 6 dex108.htm 2004 EXECUTIVE INCENTIVE PLAN 2004 Executive Incentive Plan

EXHIBIT 10.8

 

 

 

Executive and Management

Incentive Plan Design

Plan Design  

 

•   Business Financials – 60%

 

•   Individual Performance vs. Annual Objectives – 40%

 

•   All Incentive Payments subject to Corporate Financial Performance (“Business gate”)

 

•   Total incentive not “capped”; Comp Committee determines at end of year any “super-bonus” (>100%) based on financial results.

 

Page 6 - April 12, 2004 – PROPRIETARY AND CONFIDENTIAL

Individual Performance vs. Annual Objectives

- M I T’s* - (40%)

  

 

•   Agreed upon at beginning of the year and approved by next level of management

 

•   Paid annually after year end
* Most Important Tasks

 

Page 7 - April 12, 2004 – PROPRIETARY AND CONFIDENTIAL

Business Financials (60%)  

 

•      Bookings

   

60% 

•      Revenue

   

20% 

•      Operating Profit

   

20% 

•      Paid Quarterly (e.g. 15% per quarter)

     

 

Page 8 - April 12, 2004 – PROPRIETARY AND CONFIDENTIAL

Quarterly Payments  

 

•   Based on cumulative financials

 

  •   3 months results

 

  •   6 months results

 

  •   9 months results

 

  •   Year end results

 

•   Quarterly payment cannot exceed 100%

 

•   On-going review of the plan based upon company performance

 

Page 9 - April 12, 2004 – PROPRIETARY AND CONFIDENTIAL

Plan Achievement vs Plan Payout  

 

•      Achieve less than 90% of plan:

   0% payout    

•      Achieve 90% of plan:

   50% payout    

•      Achieve 100% or more of plan:

   100% payout    

•      Company reserves the right to limit payment based on overall quarterly results

 

Page 10 - April 12, 2004 – PROPRIETARY AND CONFIDENTIAL