VirtualScopics, Inc. 2014 Bonus Plan for Executives and Employees
VirtualScopics, Inc. established a Bonus Plan for 2014, approved by its Compensation Committee, covering the CEO, CFO, other management, and employees. The plan awards cash bonuses based on the company meeting specific financial and operational goals, with bonus amounts tied to a percentage of base pay. Executives are only eligible if initial performance thresholds are met, and the Compensation Committee may adjust bonuses for exceptional individual performance. The plan also includes a bonus pool for non-executive employees.
Exhibit 10.7
VirtualScopics, Inc. Bonus Plan
On January 29, 2014, the Registrant’s Compensation Committee approved the terms of the Registrant’s Bonus Plan (“Plan”). The current plan is substantially similar to the bonus plans covering prior fiscal years. The Plan covers the Registrant’s Chief Executive Officer, management employees including the Chief Financial Officer, and other employees.
The Plan provides performance criteria based upon the Registrant meeting certain financial and operational targets in the fiscal year, and requires the Registrant to achieve improved financial performance over the prior fiscal year. If the Registrant’s performance meets or exceeds the staged targets in the Plan, the participating executive may receive cash incentive bonus payments equal to a percentage of the executive’s eligible base pay. Amounts may be further adjusted by the Compensation Committee for exceptional individual performance. The bonus percentage range is 0% to 30% of eligible base pay for the chief executive officer and 0% to 22% for the chief financial officer. The executive officers are not eligible for a bonus unless the Registrant meets the initial performance thresholds. The Plan also includes a bonus pool to employees other than the executive officers.
