Virgin Media Inc. 2010 Bonus Scheme Description
Virgin Media Inc.'s 2010 Bonus Scheme, approved by the board's compensation committee, offers eligible employees—including executive officers—a bonus based on a percentage of their base salary, depending on company and individual performance. Bonuses are only paid if the company meets a set financial target for 2010. The amount varies with achievement of group and personal objectives, with potential for higher payouts for exceptional individual performance. Payments are made in a single installment after year-end, and the scheme's terms can be changed by the compensation committee.
Exhibit 10.30
Description of the Virgin Media Inc. 2010 Bonus Scheme
The compensation committee of Virgin Media Inc.’s board of directors approved the Company’s 2010 bonus scheme (the “2010 Bonus Scheme”) on January 7, 2010 covering almost half of the Company’s employees, including the Company’s named executive officers. The principal terms of the 2010 Bonus Scheme are set forth below:
Bonus Percentage and Scheme Levels
The 2010 Bonus Scheme offers employees an opportunity to receive a bonus equal to a percentage of their base salary. The percentages range from 5 - 100% of base salary (depending on employee level) for on-target performance of a number of performance targets, with a potential maximum payment of double the on-target percentage. Employees also have the opportunity to earn up to 1.5 times the calculated bonus amount depending on the employee’s individual personal performance during the year.
Qualifying Gate Target
In order for any bonuses to be payable, the Company must achieve a qualifying financial performance target (the “2010 Bonus Qualifying Gate”), which is based on the Company’s 2010 budgeted full year OCF (which is defined as operating income before depreciation, amortization, goodwill and intangible asset impairments and restructuring and other charges). If the 2010 Bonus Qualifying Gate is not achieved, no bonus payments will be made under the 2010 Bonus Scheme.
Divisional and Individual Performance Targets
If the Qualifying Gate is achieved, bonuses will be payable according to achievement against the group performance targets, as well as individually upon the achievement of personal objectives. The performance targets are an appropriately weighted mix of financial and operational metrics for the group, and measure: (i) OCF; (ii) customer satisfaction; and (iii) gross margin.
For all measures, the amount to be achieved for on-target performance (the “100% Threshold”) is generally equal to the reasonably targeted amount for that measure. A maximum target (the “200% Threshold”) is also set for each measure at which the bonus percentage payable is twice the on-target percentage payable. A minimum target (the “50% Threshold”) is also set at which the bonus payable is one-half of the on-target percentage payable. If the minimum 50% Threshold is not achieved for a particular measure, no bonus percentage is earned in respect of that measure. Percentage payments are structured to rise on a linear basis between the 50% Threshold and the 100% Threshold and between the 100% Threshold and the 200% Threshold.
Performance Multiplier
Individual achievement against a personal objectives scorecard will determine a personal multiplier against that individual’s divisional performance. The award
amount will depend on an individual’s final performance rating which is based on achievement of personal objectives and the way in which they are achieved. An individual could earn up to 150% of the divisional bonus if his or her performance was considered exceptional during the year.
Approval and Timing
Payments made under the 2010 Bonus Scheme will be approved by the compensation committee. Bonus payments will be measured on full year performance and if performance is achieved they will be paid in one installment on or around March 31, 2011.
Changes to Targets and Scheme Rules
The performance targets and rules to the 2010 Bonus Scheme may be varied at any time by agreement of the compensation committee.
