WireCo WorldGroup Management EBITDA Bonus Plan
WireCo WorldGroup has established a management bonus plan for selected management employees. The plan bases bonuses on the company's quarterly EBITDA performance compared to budget. If the company meets or exceeds its EBITDA budget, a percentage of EBITDA is allocated to a bonus pool, with higher performance resulting in a larger pool. The pool is split between executive and management groups, and individual bonuses are determined by assigned share values. No bonuses are paid if performance falls below 85% of the budgeted EBITDA.
Exhibit 10.8
Management Bonus Plan
The WireCo WorldGroup management bonus plan impacts all management employees that are selected to participate by the corporation’s senior management group. The plan compares the budgeted EBITDA for each quarter to the actual. If the corporate performance meets the budget, then 3% of the EBITDA is allocated into the bonus pool for management. The amount in the bonus pool changes with each dollar of EBITDA and varies based on the following scale:
100% of budget = 3% of EBITDA
95—99.9% of budget = 2.5% of EBITDA
90—94.9% of budget = 2.0% of EBITDA
85—89.9% of budget = 1.5% of EBITDA
No payout below 85%
For each increment of 5% above the budgeted EBITDA, the pool increases by .5%.
The pool is then divided into two pools—Executive and Management. Though the percent of the pool has shifted slightly from year to year, it is targeted at approximately a 60/40 split. Each position in the management bonus program is awarded a share value which is reflective of their contribution to the corporation. The lowest share will result in eligibility for about a 10% bonus on an annual basis.
