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Title: |
Incentive Plan |
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Entities: |
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Date: |
2005 |
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Size: |
12KB total |
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Price: |
$37 |
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ID: |
#838770 |
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The East Carolina Bank
Incentive Plan
1. Purpose.
The purpose of The East Carolina Banks Incentive Plan (the Plan) is to motivate the employees of The East Carolina Bank (the Bank) to improve the Banks financial performance within the constraints of safe and sound bank practices and to improve the Banks service levels. The Bank seeks to reward improved performance via variable awards and to de-emphasize base salaries, the fixed cost component of compensation. The implementation of an incentive plan is designed to enhance the potential compensation of the Banks employees thereby assisting in the attraction, motivation and retention of qualified employees.
2. Effective Date and Plan Year.
The Effective Date of the Plan shall be January 1, 2004. The Plan Year shall be the calendar year.
3. Eligibility.
An individual shall be eligible to become a Participant in the Plan who satisfies the following requirements:
| a) | The individual is a regular full-time employee of the Bank or its subsidiaries who performs duties for a minimum of thirty (30) hours per week. |
| b) | The individual is an employee of the Bank and in an active pay status for a minimum of six consecutive, full calendar months of the Plan Year. |
| c) | The individual is approved by the Chief Executive Officer as a Participant in the Plan |
4. Participation.
Prior to the beginning of each Plan Year, the Chief Executive Officer shall approve a list of eligible employees to become Participants in the Plan (a Participant) with respect to such Plan Year. In the event of the hiring of a new employee during the Plan Year, the Chief Executive Officer may approve the entry of a Participant into the Plan. In such case, the Incentive Award determined under Section 5 with respect to such Participant shall be multiplied by a fraction, the numerator of which is the number of full calendar months during the Plan Year in which he/she is a Participant and the denominator of which is twelve. Participation in the Plan requires the Participant to be subject to the provisions of the Plan and such other terms and conditions as the Board shall provide.
Participation is categorized by seven tiers. Tier 1 is the Chief Executive Officer, Tier 2 is Senior Management, Tier 3 is Regional Management, Tier 4 is Branch Managers and Specialized Lenders, Tier 5 is Corporate/Specialized officers; Tier 6 is home office personnel exclusive of Tiers 1, 2, and 5 and Tier 7 is branch personnel exclusive of Tier 4.
5. Incentive Award.
5.1 Subject to Section 5.2, each Participant for a Plan Year shall have the potential to receive an Incentive Award. The incentive award shall be determined by the Banks and participants performance against four Performance Criteria: Return on Average Equity, Return on Average Assets, Operating Expenses as a Percentage of Average Assets and Branch Performance Criteria. Each Tiers performance factor(s) is weighted as to its importance to the set of performance factors for that Tier.
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