Tower Bancorp, Inc. Executive Incentive Plan (2010) for Named Executives
This agreement outlines the 2010 Executive Incentive Plan for certain executives of Tower Bancorp, Inc. The plan provides cash bonuses based on company performance, including operating earnings per share and asset quality, with bonus amounts ranging from 10% to 35% of base pay depending on results. To qualify, executives must meet regulatory, employment, and performance requirements. The plan may be changed or terminated at any time without notice.
EXHIBIT 10.2
Tower Bancorp, Inc.
EXECUTIVE INCENTIVE PLAN
2010
Eligible Executive: Amin, Renninger, Merrill, Tompkins, Lundblad
Plan Features: 100% Holding Company Performance
Award Date: February, 2011
Total incentive bonus opportunity is 10% of base pay earnings at threshold, 25% of base pay earnings at target and 35% 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 12.5% | |
Optimum >110% | Up to 17.5% |
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 7.5% | |
Optimum: <100 bp | Up to 10.5% |
Asset Quality (20%)
Reduce Non-Performing Assets/Total Assets (as measured from the beginning of the month following the month in which the effective date of the merger with First Chester County | Bonus % (of base pay) | |
Threshold: Maintain at legal acquisition month-end level | Up to 2% | |
Target: Reduction of 5% | Up to 5% | |
Optimum: Reduction of 10% | Up to 7% |
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.