Tower Bancorp, Inc. CEO Incentive Plan (2010) for CEO Samuel
This agreement outlines the 2010 incentive plan for the CEO of Tower Bancorp, Inc., Samuel. The plan provides a bonus opportunity based on the company's operating earnings per share and asset quality, with potential payouts ranging from 10% to 40% of base pay depending on performance. To qualify, the CEO must achieve satisfactory regulatory ratings, remain employed at payout, and receive a performance rating of 'Good' or higher. The plan may be changed or terminated at any time without notice.
EXHIBIT 10.1
Tower Bancorp, Inc.
CEO INCENTIVE PLAN
2010
Eligible Executive: CEO - Samuel
Plan Features: 100% Holding Company Performance
Award Date: February, 2011
Total incentive bonus opportunity is 10% of base pay earnings at threshold, 30% of base pay earnings at target and 40% of base pay earnings at maximum.
Holding Company Operating Earnings Per Share (50%)
| • For the year ending December 31, 2010 | ||||
| • Operating Earnings are defined as GAAP net income less merger expense and other non-recurring items as publicly reported. | ||||
| Target $1.60 | Bonus % (of base pay) | |
| Threshold > 85% | Up to 5% | |
| Target >100% | Up to 15% | |
| Optimum >110% | Up to 20% |
Asset Quality (30%)
| Non-Performing Assets/Total Assets (as measured at the month-end prior to the month in which the effective date of the merger with First Chester County Corporation occurs) | Bonus % (of base pay) | |
| Threshold: >150 bp | Up to 3% | |
| Target: 149-101 bp | Up to 9% | |
| Optimum: <100 bp | Up to 12% |
Asset Quality (20%)
| Reduce Non-Performing Assets/Total Assets (as measured from the beginning of the month following the month | Bonus % (of base pay) | |
| Threshold: Maintain at legal acquisition month-end level | Up to 2% | |
| Target: Reduction of 5% | Up to 6% | |
| Optimum: Reduction of 10% | Up to 8% |
Qualifiers:
| • | Must achieve satisfactory rating on all regulatory exams. |
| • | Executive must be employed on the date of payout. |
| • | Executive must achieve a rating of “Good” (3) or higher performance level. |
*This plan may be altered, modified, or terminated at any time and without notice.
