Nebraska 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

Nebraska Senior Executive Management Incentive Plan The Nebraska Senior Executive Management Incentive Plan is a comprehensive program designed specifically for senior executives at The Leon Co. This plan provides a structured framework to motivate and reward top-level executives for their exceptional performance, exemplary leadership, and significant contributions to the company's growth and success. The main objective of this incentive plan is to align the interests of senior executives with the long-term strategic goals of The Leon Co., ultimately driving shareholder value and fostering a culture of excellence. The plan comprises various performance-based components, which encourage executives to focus on achieving key organizational objectives while promoting teamwork and collaboration. Key Features of the Nebraska Senior Executive Management Incentive Plan: 1. Performance Goals and Metrics: Executives' performance will be evaluated based on predefined goals and metrics, including financial targets, operational milestones, market share growth, product innovation, customer satisfaction, and employee engagement. 2. Short-term Incentives: Executives will be eligible for short-term incentives, such as annual cash bonuses, based on individual and team performance against established targets. These bonuses will be directly linked to the attainment of specific goals set by the company. 3. Long-term Incentives: To foster a focus on long-term growth and shareholder value, the plan includes long-term incentives like stock options, restricted stock units, and performance stock awards. These incentives will provide executives with an opportunity to acquire company shares, thereby aligning their interests with those of the shareholders. 4. Retention and Succession Planning: The plan may also include retention bonuses and deferred compensation arrangements to ensure continuity and retain top talent within the senior executive team. It aims to create a sense of loyalty and commitment, reducing the likelihood of executive turnover. 5. Administration and Governance: The Nebraska Senior Executive Management Incentive Plan will be administered by a compensation committee comprising independent directors, ensuring objectivity and fairness in the assessment of executive performance and determination of incentives. Attachments: 1. Sample Performance Scorecard: This attachment outlines the specific performance indicators and targets that will be used to evaluate executive performance throughout the plan's duration. 2. Incentive Calculation Methodology: This document details the formula and methodology employed to calculate the short-term and long-term incentives based on achieved performance levels against the set goals. 3. Performance Stock Award Agreement: This attachment includes a template agreement that outlines the terms and conditions pertaining to the performance-based stock awards granted to senior executives. Types of Nebraska Senior Executive Management Incentive Plans for The Leon Co.: 1. Senior Executive Management Incentive Plan — Short-Term Focus: This plan primarily emphasizes short-term financial targets and immediate performance outcomes. It suits corporate situations where quick turnarounds or rapid growth are the primary goals. 2. Senior Executive Management Incentive Plan — Long-Term Focus: This plan places a significant focus on long-term strategic objectives, sustainable growth, and shareholder value. It is well-suited for companies with a stable market position and a long-term vision. 3. Senior Executive Management Incentive Plan — Balanced Approach: This plan involves a balanced combination of short-term and long-term objectives. It aims to strike a middle ground between immediate financial performance and sustainable growth. Implementing an effective senior executive management incentive plan like the Nebraska Senior Executive Management Incentive Plan ensures the alignment of executives' interests with the company's objectives, driving a higher level of performance, motivation, and reward within the senior leadership team at The Leon Co.