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SAMPLE

Executive Incentive Compensation Program

20XX Performance Goals For: [Executive]

Administration of the Performance Goals documented here-in will be in accordance with thecurrent [Organization] Executive Incentive Compensation Program Description.

  1. Corporate Financial Goals

(%___ of base award: %___of Upside Award[p1]):

Financial Goal for CEO and other senior managers[p2]

Achieve current year EBITDA according to plan and position [Organization] for sustained growth in EBITDA at 20% per year or better. Both the current year EBITDA target and the sustained growth goal must be achieved to achieve the goal.

  • The current year target will be measured simply by comparing actual EBITDA net of actual capitalized R&D to planned EBITDA.
  • The sustained growth goal will be measured by determining whether sufficient new business has been generated in the current year to permit a realistic plan for the next fiscal year with 20% EBITDA growth.

Achieve the business plan to achieve Revenue of $27M and generate $8.2M in EBITDA net of capitalized R&D and lay the groundwork for a 20XX+1 Plan of $33M in revenue at 35% EBITDA.

% of
Total Target / Performance Level / IC award as X of Full Share / 20XX EBITDA net of Capitalized R&D
($000)
88% / Near Miss / 1/8 / $7,216
100% / Target / 1/4 / $8,200
  1. Personal Financial Goals

(%___ of base award: %___of Upside Award):

Specific Financial Goal for 20XX[p3].

The 20XX Earnings target for [client/project/function] is as shown in the table below.

The sustained growth goal will be determined by whether enough business is booked to sustain the 20XX+1 EBITDA target also shown in the table below:

Achieve my Unit Group revenue goal of XXX at target profitability as shown in the attached “pages of the plan” and summarized below:

%of Target / Performance Level / IC award as X of Full Share / 20XX Unit
Revenue
($000) / Planned
20XX+1 Unit Revenue
($000)
-% / Near Miss / 1/4 / $XXX-% / $XXX-%*1.2
100% / Target / 1/2 / $XXX / $XXX *1.2
+% / Exceed / 3/4 / $XXX+% / $XXX+%*1.2
++% / Greatly Exceed / 1.0 / $XXX++% / $XXX++%*1.2
  1. Non-Financial Goals (%____of base award)
  2. Client Satisfaction
  • Business Development
  • People Development
  • Build Company
  • Personal Development
  • Teamwork:
  1. Threshold Goals (i.e., goals everyone must achieve in order to participate in the EICP and earn incentive compensation)

–Highest ethical behavior

–Model the organization’s target culture

–Timely and accurate invoicing and earned revenue submissions;

–Establishment of written goals for myself and my key personnel;

–On-time submission of forecasts, plans, budgets and projections;

–Timely completion of performance evaluations;

–Compliance with proposal and project processes;

–Promoting an inclusive and diverse work environment, and

–Timely submission of timesheets, expense vouchers, salary recommendations and promotion recommendations

SUBMITTED by: ______Date: ______

APPROVED by:

Manager: ______Date: ______

Core Group Leader:______Date: ______

[p1]If the entire organization beats its goal to what extent does a participant participate in any upside awards? In some cases it works out best for an individual’s upside award’s to be tied exclusively to their own performance and not to the group.

[p2]This section is included in every participant’s goals and motivates everyone to help the whole group succeed. It is important that the way to win the most is if the entire group succeeds so the share of total award for this section is high for those who can have a large impact on the performance of the whole. The CEO may have 100% of his/her financial award be based on this one goal.

[p3]Insert into this section whatever is to be accomplished that is specific to the individual.