EXHIBIT 10.8
Executive and Management Incentive Plan Design |
Plan Design |
• | Business Financials – 60% |
• | Individual Performance vs. Annual Objectives – 40% |
• | All Incentive Payments subject to Corporate Financial Performance (“Business gate”) |
• | Total incentive not “capped”; Comp Committee determines at end of year any “super-bonus” (>100%) based on financial results. |
Page 6 - April 12, 2004 –PROPRIETARY AND CONFIDENTIAL
Individual Performance vs. Annual Objectives - M I T’s* - (40%) |
• | Agreed upon at beginning of the year and approved by next level of management |
• | Paid annually after year end |
* | Most Important Tasks |
Page 7 - April 12, 2004 –PROPRIETARY AND CONFIDENTIAL
Business Financials (60%) |
• Bookings | 60% | |
• Revenue | 20% | |
• Operating Profit | 20% | |
• Paid Quarterly (e.g. 15% per quarter) |
Page 8 - April 12, 2004 –PROPRIETARY AND CONFIDENTIAL
Quarterly Payments |
• | Based on cumulative financials |
• | 3 months results |
• | 6 months results |
• | 9 months results |
• | Year end results |
• | Quarterly payment cannot exceed 100% |
• | On-going review of the plan based upon company performance |
Page 9 - April 12, 2004 –PROPRIETARY AND CONFIDENTIAL
Plan Achievement vs Plan Payout |
• Achieve less than 90% of plan: | 0% payout | |||
• Achieve 90% of plan: | 50% payout | |||
• Achieve 100% or more of plan: | 100% payout | |||
• Company reserves the right to limit payment based on overall quarterly results |
Page 10 - April 12, 2004 –PROPRIETARY AND CONFIDENTIAL