2012 Annual Bonus Plan
EXHIBIT 10.25
2012 Annual Bonus Plan
On March 30, 2012, the Compensation Committee of the Board of Directors of Walker & Dunlop, Inc. (the “Company”) adopted specific performance criteria that the Compensation Committee will consider when making cash bonus awards for 2012 to the Company’s named executive officers, William Walker, Howard Smith, Deborah Wilson, Richard Warner, and Richard Lucas. These performance criteria are listed below for each of the named executive officers. For each named executive officer, achievement of applicable performance criteria at the threshold, target or maximum levels will result in bonuses of up to 75%, 100% and 150%, respectively, of such officer’s base salary, subject to the exercise of negative discretion by the Compensation Committee. The percentage weight amounts attributable to each performance goal will be interpolated, if possible, on a straight line basis if achievement of the performance goals falls between the specified goals for the threshold and target levels or between the target and maximum levels.
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| Goal Attainment Level |
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| Threshold |
| Target |
| Maximum |
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| Bonus Award Value |
| Up to 75% of Target Bonus & Weighting of Goal |
| Up to 100% of Target Bonus * Weighting of Goal |
| Up to 150% of Target Bonus * Weighting of Goal |
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William Walker
Chairman, President & CEO
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| Goal Attainment Level |
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| Goal |
| Weighting |
| Threshold |
| Target |
| Maximum |
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| Revenue |
| 30 | % | $ | 152,350,000 |
| $ | 168,590,000 |
| $ | 178,798,000 |
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| Earnings Per Share |
| 30 | % | $ | 1.53 |
| $ | 1.61 |
| $ | 1.67 |
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| Operating Margin |
| 20 | % | 29 | % | 34 | % | 35 | % | |||
| Diversify Revenues (GSE revenues defined (for this metric) as aggregate Fannie Mae and Freddie Mac origination fees, MSR revenues and servicing fees; as a percentage of total revenues) |
| 20 | % | 69.0% of total revenues derived from GSEs |
| 67.3% of total revenues derived from GSEs |
| 65.6% of total revenues derived from GSEs |
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Howard Smith
Executive Vice President & COO
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| Goal Attainment Level |
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| Goal |
| Weighting |
| Threshold |
| Target |
| Maximum |
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| Revenue |
| 20 | % | $ | 152,350,000 |
| $ | 168,590,000 |
| $ | 178,798,000 |
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| Earnings Per Share |
| 30 | % | $ | 1.53 |
| $ | 1.61 |
| $ | 1.67 |
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| Operating Margin |
| 10 | % | 29 | % | 34 | % | 35 | % | |||
| Completion of an acquisition of a capital markets business or grow capital markets group originations |
| 20 | % | N/A or $137,500,000 |
| 1 Acquisition or $275,000,000 |
| 2 or more Acquisitions or $343,750,000 |
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| Growth in Originations |
| 20 | % | $ | 4,025,917,000 |
| $ | 4,677,975,000 |
| $ | 5,177,975,000 |
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Deborah Wilson
Executive Vice President & CFO
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| Goal Attainment Level |
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| Goal |
| Weighting |
| Threshold |
| Target |
| Maximum |
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| Revenue |
| 20 | % | $ | 152,350,000 |
| $ | 168,590,000 |
| $ | 178,798,000 |
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| Earnings Per Share |
| 30 | % | $ | 1.53 |
| $ | 1.61 |
| $ | 1.67 |
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| Operating Margin |
| 10 | % | 29 | % | 34 | % | 35 | % | |||
| Completion of the servicing and closing components of the SalesForce/General Ledger integration project by 12/31/2012 |
| 20 | % | Committee Discretion |
| Committee Discretion |
| Committee Discretion |
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| Net Warehouse Interest Income |
| 20 | % | $ | 4,247,000 |
| $ | 5,378,000 |
| $ | 6,722,500 |
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Richard Warner
Executive Vice President & CCO
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| Goal Attainment Level |
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| Goal |
| Weighting |
| Threshold |
| Target |
| Maximum |
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| Revenue |
| 20 | % | $ | 152,350,000 |
| $ | 168,590,000 |
| $ | 178,798,000 |
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| Earnings Per Share |
| 30 | % | $ | 1.53 |
| $ | 1.61 |
| $ | 1.67 |
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| Operating Margin |
| 10 | % | 29 | % | 34 | % | 35 | % | |||
| Credit Loss Provisions (net of any provisions from an acquisition) |
| 30 | % | $ | 6,600,000 |
| $ | 6,000,000 |
| $ | 4,724,000 |
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| Underwriting Cost per Loan |
| 10 | % | $ | 18,315 |
| $ | 17,443 |
| $ | 16,571 |
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Richard Lucas
Executive Vice President & GC
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| Goal Attainment Level |
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| Goal |
| Weighting |
| Threshold |
| Target |
| Maximum |
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| Revenue |
| 20 | % | $ | 152,350,000 |
| $ | 168,590,000 |
| $ | 178,798,000 |
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| Earnings Per Share |
| 30 | % | $ | 1.53 |
| $ | 1.61 |
| $ | 1.67 |
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| Operating Margin |
| 10 | % | 29 | % | 34 | % | 35 | % | |||
| Diversify Revenues (GSE revenues defined (for this metric) as aggregate Fannie Mae and Freddie Mac origination fees, MSR revenues and servicing fees; as a percentage of total revenues) |
| 20 | % | 69.0% of total revenues derived from GSEs |
| 67.3% of total revenues derived from GSEs |
| 65.6% of total revenues derived from GSEs |
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| Proactively manage Legal and Human Resources Issues |
| 20 | % | Committee Discretion |
| Committee Discretion |
| Committee Discretion |
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