Ohio 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: Ohio Senior Executive Management Incentive Plan for The Leon Co. 1. Introduction: The Ohio Senior Executive Management Incentive Plan is an integral part of The Leon Co.'s overall compensation strategy for its senior executives based in Ohio. This comprehensive plan is specifically designed to motivate, reward, and retain the company's top leadership by aligning their compensation with the organization's performance and long-term growth objectives. 2. Key Features of the Ohio Senior Executive Management Incentive Plan: a. Performance Metrics: The plan incorporates a set of performance metrics that are directly tied to the attainment of the company's strategic goals. These metrics may include financial targets, operational efficiency, market share expansion, product development, customer satisfaction, and other key performance indicators. b. Individual Target Goals: Each participating executive sets individual target goals in collaboration with the senior management team. These goals include both financial and non-financial objectives, which are aligned with the overall company objectives. Attainment of these goals determines the bonus payout. c. Bonus Calculation: Based on the achievements of predetermined target goals, participating executives become eligible for a performance-based bonus. The bonus calculation methodology ensures that direct correlation exists between goal attainment and reward distribution. d. Equity-Based Incentives: The Ohio Senior Executive Management Incentive Plan may include equity-based incentives, such as stock options, restricted stock units, or performance shares. These incentives provide executives an opportunity to gain ownership in the company, foster long-term commitment, and align their interests with those of the shareholders. e. Multi-Year Performance Period: The plan may have a multi-year performance period, typically ranging from one to three years. This enables the executives to focus on strategic initiatives that require sustained effort and long-term vision, rather than short-term gains. f. Balanced Scorecard Approach: To ensure a holistic evaluation of performance, the plan may adopt a balanced scorecard approach. This approach considers not only financial performance but also strategic, operational, customer, and employee-related metrics. 3. Attachments: a. Sample Performance Goals: This attachment provides a comprehensive list of potential performance goals that executives may consider when setting their individual targets. b. Bonus Payout Calculation Examples: This attachment presents illustrative examples of how the bonus payout is calculated based on the attainment of individual target goals, offering clarity on the process. c. Equity-Based Incentive Guidelines: This attachment outlines the terms and conditions, vesting schedule, and exercise procedures related to equity-based incentives, empowering executives to make informed decisions regarding their participation. In summary, the Ohio Senior Executive Management Incentive Plan for The Leon Co. is a sophisticated compensation plan that effectively links executive remuneration with the company's strategic objectives, fostering sustained growth, and aligning the interests of executives with those of the organization and its shareholders.

Title: Ohio Senior Executive Management Incentive Plan for The Leon Co. 1. Introduction: The Ohio Senior Executive Management Incentive Plan is an integral part of The Leon Co.'s overall compensation strategy for its senior executives based in Ohio. This comprehensive plan is specifically designed to motivate, reward, and retain the company's top leadership by aligning their compensation with the organization's performance and long-term growth objectives. 2. Key Features of the Ohio Senior Executive Management Incentive Plan: a. Performance Metrics: The plan incorporates a set of performance metrics that are directly tied to the attainment of the company's strategic goals. These metrics may include financial targets, operational efficiency, market share expansion, product development, customer satisfaction, and other key performance indicators. b. Individual Target Goals: Each participating executive sets individual target goals in collaboration with the senior management team. These goals include both financial and non-financial objectives, which are aligned with the overall company objectives. Attainment of these goals determines the bonus payout. c. Bonus Calculation: Based on the achievements of predetermined target goals, participating executives become eligible for a performance-based bonus. The bonus calculation methodology ensures that direct correlation exists between goal attainment and reward distribution. d. Equity-Based Incentives: The Ohio Senior Executive Management Incentive Plan may include equity-based incentives, such as stock options, restricted stock units, or performance shares. These incentives provide executives an opportunity to gain ownership in the company, foster long-term commitment, and align their interests with those of the shareholders. e. Multi-Year Performance Period: The plan may have a multi-year performance period, typically ranging from one to three years. This enables the executives to focus on strategic initiatives that require sustained effort and long-term vision, rather than short-term gains. f. Balanced Scorecard Approach: To ensure a holistic evaluation of performance, the plan may adopt a balanced scorecard approach. This approach considers not only financial performance but also strategic, operational, customer, and employee-related metrics. 3. Attachments: a. Sample Performance Goals: This attachment provides a comprehensive list of potential performance goals that executives may consider when setting their individual targets. b. Bonus Payout Calculation Examples: This attachment presents illustrative examples of how the bonus payout is calculated based on the attainment of individual target goals, offering clarity on the process. c. Equity-Based Incentive Guidelines: This attachment outlines the terms and conditions, vesting schedule, and exercise procedures related to equity-based incentives, empowering executives to make informed decisions regarding their participation. In summary, the Ohio Senior Executive Management Incentive Plan for The Leon Co. is a sophisticated compensation plan that effectively links executive remuneration with the company's strategic objectives, fostering sustained growth, and aligning the interests of executives with those of the organization and its shareholders.