Missouri Senior Executive Management Incentive Plan with attachments for The Geon Co.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• Control #: US-CC-20-234
• Format: Word; Rich Text

Description

20-234 20-234 . . . Senior Executive Management Incentive Plan which is similar to corporation's existing annual bonus program except for changes necessary to cause incentive compensation to qualify as performance-based compensation under Section 162(m) of Internal Revenue Code. Under Plan, (a) key executives who have potential to influence significantly and positively the performance of corporation are selected by Committee, (b) participants are assigned to an incentive category based on organizational level and potential impact on corporation results, (c) participant categories define level of incentive opportunity, stated as a percentage (up to maximum of 200%) of base salary, that will be available to participant (Incentive Percentage), and (d) Committee uses measures of corporation performance to determine performance goal target levels. Performance measures include one or more of following: (i) return to stockholders, (ii) cash flow, (iii) return on equity, (iv) corporation created income, (v) sales growth, (vi) earnings and earnings growth, (vii) return on assets, (viii) stock price, (ix) earnings per share, (x) market share, (xi) customer satisfaction, and (xii) safety and/or environmental performance. Selected performance measures are weighted by Committee each year to reflect their relative importance to corporation in that Plan Year. A portion of each participant's award, as determined by Committee, is paid in form of restricted stock. Participants can elect additional optional deferrals so that they may receive up to 100% of their award as restricted stock. Any award paid as restricted stock is enhanced with a 25% premium; i.e., for every $100 deferred, participant will receive $125 in restricted stock Title: Missouri Senior Executive Management Incentive Plan for The Leon Co. — Detailed Description and Attachments 1. Introduction: Understanding the Missouri Senior Executive Management Incentive Plan (SEMI) for The Leon Co. The Missouri Senior Executive Management Incentive Plan (SEMI) is a comprehensive program designed to motivate and reward senior-level executives working for The Leon Co., a renowned corporation operating in Missouri. This plan aims to align the interests of executives and shareholders by incentivizing goal achievement and superior performance. 2. Key Features of the Missouri SEMI: a. Performance-based Compensation: The SEMI emphasizes performance-based incentives, linking executive compensation directly to the achievement of preset targets, strategic objectives, and financial goals. b. Variable Compensation Structure: The plan incorporates variable components, such as bonuses and equity grants, to provide executives with financial rewards directly proportional to their performance and contributions. c. Long-term Value Creation: By offering equity-based incentives, the SEMI encourages senior executives to actively participate in fostering long-term value creation for The Leon Co. d. Customization and Flexibility: The Leon Co. tailors the SEMI to meet its specific objectives and align it with the company's short-term and long-term strategies, ensuring continuous growth and adapting to market dynamics. 3. Types of Missouri Senior Executive Management Incentive Plans a. Annual Performance Incentive Plan (PIP): The PIP encompasses short-term objectives, allowing senior executives to earn annual bonuses based on specific performance metrics, financial targets, and individual goals. b. Long-Term Incentive Plan (TIP): Through the TIP, The Leon Co. offers senior executives incentives, such as stock options, performance shares, or restricted stock units, to foster sustained growth and commitment to the organization's long-term success. c. Cash Bonus Plan (CBP): The CBP focuses on immediate financial rewards based on the achievement of set targets, providing executives with additional monetary compensation beyond their regular salary. d. Equity Compensation Plan (ECP): This plan grants senior executives equity-based incentives, such as stock grants or stock options, tying their compensation to the company's stock performance and fostering alignment with shareholders' interests. 4. Attachments: a. Missouri Senior Executive Management Incentive Plan Summary: This document summarizes the core components, objectives, and key terms of the SEMI. It includes an overview of each type of plan, target metrics, eligibility criteria, and specific performance measures. b. Performance Metrics and Goals: This attachment outlines the key performance indicators (KPIs) and strategic goals used to evaluate executive performance within each type of plan. It includes quantitative targets, qualitative objectives, and a transparent methodology for measuring results. c. Executive Compensation Disclosure: A detailed breakdown and disclosure of executive compensation, including base salary, annual and long-term incentives, equity grants, and other benefits. This attachment ensures transparency and compliance with regulatory requirements. d. Legal Framework and Plan Administration: This attachment provides legal disclaimers, clarifies the plan's eligibility requirements, addresses governance procedures, details the plan's administration, and ensures compliance with Missouri state laws and regulations. e. Performance Review Process: This document outlines the review process for evaluating executive performance, including timelines, communication channels, and the involvement of relevant stakeholders in determining rewards based on the SEMI. Conclusion: The Missouri Senior Executive Management Incentive Plan (SEMI) for The Leon Co. is a dynamic and robust program designed to drive performance, align executive interests with shareholders, and foster long-term value creation. By implementing various types of plans, such as the PIP, TIP, CBP, and ECP, The Leon Co. ensures a comprehensive approach to executive compensation that motivates and rewards excellence.

Title: Missouri Senior Executive Management Incentive Plan for The Leon Co. — Detailed Description and Attachments 1. Introduction: Understanding the Missouri Senior Executive Management Incentive Plan (SEMI) for The Leon Co. The Missouri Senior Executive Management Incentive Plan (SEMI) is a comprehensive program designed to motivate and reward senior-level executives working for The Leon Co., a renowned corporation operating in Missouri. This plan aims to align the interests of executives and shareholders by incentivizing goal achievement and superior performance. 2. Key Features of the Missouri SEMI: a. Performance-based Compensation: The SEMI emphasizes performance-based incentives, linking executive compensation directly to the achievement of preset targets, strategic objectives, and financial goals. b. Variable Compensation Structure: The plan incorporates variable components, such as bonuses and equity grants, to provide executives with financial rewards directly proportional to their performance and contributions. c. Long-term Value Creation: By offering equity-based incentives, the SEMI encourages senior executives to actively participate in fostering long-term value creation for The Leon Co. d. Customization and Flexibility: The Leon Co. tailors the SEMI to meet its specific objectives and align it with the company's short-term and long-term strategies, ensuring continuous growth and adapting to market dynamics. 3. Types of Missouri Senior Executive Management Incentive Plans a. Annual Performance Incentive Plan (PIP): The PIP encompasses short-term objectives, allowing senior executives to earn annual bonuses based on specific performance metrics, financial targets, and individual goals. b. Long-Term Incentive Plan (TIP): Through the TIP, The Leon Co. offers senior executives incentives, such as stock options, performance shares, or restricted stock units, to foster sustained growth and commitment to the organization's long-term success. c. Cash Bonus Plan (CBP): The CBP focuses on immediate financial rewards based on the achievement of set targets, providing executives with additional monetary compensation beyond their regular salary. d. Equity Compensation Plan (ECP): This plan grants senior executives equity-based incentives, such as stock grants or stock options, tying their compensation to the company's stock performance and fostering alignment with shareholders' interests. 4. Attachments: a. Missouri Senior Executive Management Incentive Plan Summary: This document summarizes the core components, objectives, and key terms of the SEMI. It includes an overview of each type of plan, target metrics, eligibility criteria, and specific performance measures. b. Performance Metrics and Goals: This attachment outlines the key performance indicators (KPIs) and strategic goals used to evaluate executive performance within each type of plan. It includes quantitative targets, qualitative objectives, and a transparent methodology for measuring results. c. Executive Compensation Disclosure: A detailed breakdown and disclosure of executive compensation, including base salary, annual and long-term incentives, equity grants, and other benefits. This attachment ensures transparency and compliance with regulatory requirements. d. Legal Framework and Plan Administration: This attachment provides legal disclaimers, clarifies the plan's eligibility requirements, addresses governance procedures, details the plan's administration, and ensures compliance with Missouri state laws and regulations. e. Performance Review Process: This document outlines the review process for evaluating executive performance, including timelines, communication channels, and the involvement of relevant stakeholders in determining rewards based on the SEMI. Conclusion: The Missouri Senior Executive Management Incentive Plan (SEMI) for The Leon Co. is a dynamic and robust program designed to drive performance, align executive interests with shareholders, and foster long-term value creation. By implementing various types of plans, such as the PIP, TIP, CBP, and ECP, The Leon Co. ensures a comprehensive approach to executive compensation that motivates and rewards excellence.