• | The Plan Year begins on January 1st and ends on December 31st. The calculation will be based on the employee’s Incentive Compensation (Incentive Comp) level and current salary. Eligible employees, as defined below, are assigned an Incentive Comp level (percentage of base salary) based on their position or specified in their offer letter. So, for example, if a person’s salary is $100,000, paid in equal increments over a year, that person had a 20% Incentive Comp level and the Metric(s) set were attained at 100%, that person’s incentive would be 20% x $100,000 or $20,000. |
• | Plan metrics will measure (i) Net Revenue (ii) EBITDA achievement and (iii) Strategic Team goals weighted as follows: |
o | 40% - EBITDA |
o | 40% - Net Revenue |
o | 20% - Strategic Team Goals (or individual as applicable) |
• | Attainment of not less than 93% of the Company’s Annual Operating Plan established EBITDA must be achieved in order to establish the Plan pool for Incentive Comp payments under each Metric to occur. If achieved, funding for each Metric is independent and will be calculated based on the weighting noted above. |
• | Net Revenue will be paid based on attainment of the Net Revenue goal set for the bonus year at the same payment percentage schedule as set out in the table of % of EBITDA achieved to fund the Plan Pool. So, for example, if 98% of the Net Revenue Metric is achieved, 80% of the Net Revenue Metric will be paid. |
• | Strategic Team Goals will be based on actual performance on budgeted financial goals, such as revenue growth, cost control, case or dollar volume, etc. |
o | Payout percentage, on Strategic Team Goals, would range from 0% to 100% based on the proportion of goals achieved. So, for example, if three out of four team goals were achieved, team component for that group would fund at 75% of target. |
o | Minimum of three goals and a maximum of 5 goals are set by the functional Manager near the start of the year. |
• | Overall Manager discretion: |
o | Working with the available Plan pool of funds and within the established guidelines, Managers will be able to differentiate final award payouts by performance as to Strategic Team Goals. Any and all Incentive Comp payout remains subject to overall Manager and Company discretion related to the overall individual and functional team performance. |
• | The Plan Pool will fund on the following schedule: |
% of EBITDA Achieved | % Plan Pool Will Fund |
Below 93% | 0% |
93% | 30% |
94% | 40% |
95% | 50% |
96% | 60% |
97% | 70% |
98% | 80% |
99% | 90% |
100% | 100% |
- | - |
105% | 150% |
Element | Weighting | Performance % of Plan | Funding % of Metric | Amount | Description |
EBITDA | 40% | 100% | 100% | $8,000 | $20,000 Incentive Comp potential x 40% EBITDA performance paid at 100% |
Net Revenue | 40% | 98% | 80% | $6,400 | $20,000 Incentive Comp potential x 40% Net Revenue performance paid at 80% |
Strategic Team Goals Case Volume – Met (1/3) Trade Spend +/- 2% - Met (1/3) Snack Cake AOP – Not Met (1/3) | 20% | 100% (33.3% for each met metric) | 100% | $4,000 | $20,000 Incentive Comp potential x 20% for three out of three metrics achieved |
Total Incentive Comp Achieved | $18,400 |
• | Employees who commence employment or are promoted to an eligible position prior to October 1st of a Plan Year will receive a pro-rated Incentive Comp based upon their service date. As such, actual salary for the period of employment, while in an Incentive Comp eligible position, paid during the Plan Year to the employee will be the base salary used for Incentive Compensation calculation purposes. Thus, a person who has been hired at an annual salary of $100,000 on September 30 and was paid $25,000 as salary (1/4 of annual salary for working 1/4 of the year) during the short year and had a 20% incentive level and having attained 100% of Target(s) would be paid an Incentive Compensation payment of $25,000 x 20% = $5,000 for the short year. Employees hired on or after October 1 of a Plan Year will not be eligible for an Incentive Compensation for that year. |
• | An Employee must be an active employee of the Company and on the payroll as of the date on which the applicable Incentive Compensation is paid. |
• | As consideration for being eligible for receipt of Incentive Compensation in any Plan Year, an Employee must have executed and delivered to the Company a mutually agreed form of Confidentiality Agreement and any other agreement requested by the Company in connection with such Employee’s employment. |
• | Any sums paid to an eligible employee that are other than base salary payments will not be included in Incentive Compensation payment calculation. |
• | The Incentive Compensation payment will be pro-rated for any approved unpaid leave of absence lasting 4 consecutive weeks or more, to the extent permitted by law. |
• | If during a Plan Year, an Employee becomes Incentive Comp eligible before October 1st of a Plan Year, or changes from Incentive Comp eligible to non-Incentive Comp eligible after June 30th of a Plan Year, the amount of any the Incentive Compensation payable to such employee will be pro-rated for the time in the eligible position. |