2019 Annual Performance Incentive Plan (APIP) for Executive Officers

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

This agreement outlines the 2019 Annual Performance Incentive Plan (APIP), also called the Management Incentive Program, for executive officers of the company. Under this plan, executives are eligible for cash payments based on meeting specific performance goals set by the Compensation Committee. The plan uses financial measures such as revenue, operating margin, and free cash flow, each weighted at 25%, along with a non-financial performance component. Awards are determined by how well these objectives are met, and the Committee can adjust payouts based on individual performance.

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EX-10.(E)(27) 4 xrx-123119xex10e27apip.htm EXHIBIT 10.(E)(27) Exhibit
EXHIBIT 10(e)(27)




Annual Performance Incentive Plan for 2019 (2019 APIP)

Under the 2019 APIP (renamed Management Incentive Program for 2019 (2019 MIP)), executive officers of the Company are eligible to receive performance related cash payments. Payments are, in general, only made if performance objectives established by the Compensation Committee of the Board of Directors (the Committee) are met.

The Committee previously approved incentive opportunities for 2019, expressed as a percentage of base salary for each participating officer. The Committee also established overall threshold, target and maximum performance metrics and payout ranges for the 2019 APIP. Financial performance measures and weightings were: Absolute Revenue (unadjusted for currency) (weighted at 25%), Adjusted Operating Margin (weighted at 25%) and Free Cash Flow (weighted at 25%). Additionally, the Committee had established an opportunity for an individual, corporate or group non-financial/operational performance component (weighted at 25%) which was split evenly among the first three measures. The Committee maintains the authority to increase or decrease an award based on individual performance.

The performance against the 2019 APIP goals was as follows: Absolute Revenue was below threshold, Operating Margin was between threshold and target, and Free Cash Flow was above maximum.