Willow Grove Bank Incentive Compensation Plan for Directors

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

Willow Grove Bank has established an incentive compensation plan for its directors, providing additional payments based on the bank's annual performance. The incentive is calculated as a percentage of director fees and is awarded if the bank meets specific financial and regulatory benchmarks, such as maintaining strong safety ratings, receiving a clean audit opinion, and achieving returns above regional peers. The total incentive can reach up to 20% of base director fees and is paid after the annual audit, typically at the end of the first quarter of the new fiscal year.

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EX-10.7 4 gex10_7-25803.txt Exhibit 10.7 Incentive Compensation Plan WILLOW GROVE BANK INCENTIVE COMPENSATION PLAN Willow Grove Bank will pay an incentive compensation amount as a percentage of director fees paid to each director on the Board based upon the performance of the institution (excluding community enrichment expenses) as measured annually. The approval and distribution will be after the report of this Independent Public Accountants, usually at the end of the first quarter of the new fiscal year. The performance measurement criteria is as follows:
Director Percentage ---------- 1. A. SAFETY AND SOUNDNESS Must have a CAMEL equal or superior to rating on October 28, 1996. B. INDEPENDENT AUDITOR'S REPORT Must have an unqualified opinion on Financial Statements. C. RETURN ON ASSETS ROA must be 10% above Mid-Atlantic Region peer Average. Percentage of Base Salary 5% 2. When Camel rating is superior to rating on October 28, 1996 exam. Maximum Additional Percentage 3% 3. When ROA is in excess of 110 % of Mid-Atlantic Peer Average ROA. DIRECTOR For each additional 2.5 bp. above the 10% an additional 1%. Maximum Additional Percentage 12% 4. Maximum Total Percentage of Base Directors Fees. 20%
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