Attached files
file | filename |
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8-K - FORM 8-K COMPENSATION ISSUES 12-2-09 - ICO INC | form8k-compissues120209.htm |
EX-10.4 - EXHIBIT 10.4 - LEUSCHNER RETENTION AGREEMENT - ICO INC | exhibit10-4.htm |
EX-10.2 - EXHIBIT 10.2 - FY 2010 ANNUAL INCENTIVE BONUS PLAN - CFO - ICO INC | exhibit10-2.htm |
EX-10.3 - EXHIBIT 10.3 - FY 2010 ANNUAL INCENTIVE BONUS PLAN - CEO - ICO INC | exhibit10-3.htm |
ICO,
Inc.
FY
2010 Annual Incentive Bonus Plan Matrix- Business Unit
Presidents
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These four
pages constitute the FY 2010 Annual Incentive Bonus Plans for the
following three individuals: (1) Donald Eric Parsons, President – ICO
Polymers North America (“IPNA”); (2) Stephen E. Barkmann, President –
Bayshore Industrial (“Bayshore”); (3) Derek R. Bristow – President, ICO
Europe and Asia Pacific.
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Pay-out
as a percentage of base salary
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Measurement
|
Weighting
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0%
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50%
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100%
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Operating
Income
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20%
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See Operating
Income Targets attached
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See Operating
Income Targets attached
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See Operating
Income Targets attached
|
Business
Unit ROIC
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15%
|
See ROIC
Targets
attached
|
See ROIC
Targets
attached
|
See ROIC
Targets
attached
|
Business
Unit Investment turnover
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10%
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*
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*
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*
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Cash
Flow from Operations
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10%
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See Cash Flow
Targets attached
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See Cash Flow
Targets attached
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See Cash Flow
Targets attached
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ICO,
Inc. Consolidated ROE
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25%
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*
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*
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*
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Subjective/Qualitative
Factors
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20%
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As recommended
by CEO, and determined & approved by the Compensation
Committee
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As recommended
by CEO, and determined & approved by the Compensation
Committee
|
As recommended
by CEO, and determined & approved by the Compensation
Committee
|
Measurement
definitions
Operating
Income -
Earnings before interest and
taxes. [*]
ROIC
- Annual Operating Income dividend by Invested Capital Base. Invested
Capital Base defined as average total assets minus all intercompany loans
(including intercompany accounts receivables and payables) investment in
affiliates, and goodwill, minus current liabilities, excluding funded
debt (i.e. interest bearing debt). The average Invested Capital base
shall be calculated using the previous thirteen points of month-end
data.
Investment
turnover – Trailing twelve months revenue dividend by the average
Invested Capital Base for the previous thirteen month-end
periods. Note that Investment turnover calculation will include
intercompany revenues, receivables and payables.
Cash
Flow from Operations – Cash flow from operating activities less capital
expenditures excluding: intercompany interest income/expense tax effected and
changes in intercompany payables/receivables. Cash Flow From
Operations will be computed by taking a weighted average of each quarter’s cash
flow and then calculating the annual cash flow amount as
follows: Cash flow from operations will be equal to the sum of the
first quarter cash flow times four, the second quarter cash flow times three,
the third quarter cash flow times two and the fourth quarter cash flow times
one. That sum will then be divided by 2.5.
ROE
– Net income from continuing operations, excluding merger related costs,
divided by Stockholders’ equity. For purposes of this calculation,
Stockholders’ equity shall be averaged using the previous four (4)
quarter-end balances, plus the year-end balance (i.e. the previous year end
balance plus the four quarter-end balances, plus the year-end balance (i.e. the
previous year-end balance plus the four quarter-end balances of fiscal year
2010). If ICO, Inc. ceases to be an independent Company during the
year, the computation of ROE will include only the period of time that ICO, Inc.
was independent.
Computational
Note
For each
measurement the bonus amount payable is calculated as the result achieved for
each measurement (i.e. the 0%, 50% or 100% pay-out) times the weighting and
multiplied by the relevant Business Unit President’s base salary. Results for
each measurement falling between the targeted amounts adjust the pay-out targets
by interpolating the percentage of: (i) the result achieved minus the lower
threshold divided by, (ii) the difference between the higher and lower target,
multiplied by (iii) the higher pay-out target percentage.
Additional
Provisions
For the
purpose of this paragraph termination for “Cause” and “Good Reason” have the
meanings ascribed to those terms in the ICO, Inc. Change in Control Severance
Plan and the Business Unit President’s Participation Agreement in relation
thereto. A Business Unit President will not be entitled to a bonus
under this Plan, or otherwise with respect to FY 2010, if, prior to October 1,
2010, (a) he resigns from employment with the Company (except in the case of
resignation or termination for Good Reason), or (b) he is terminated from
employment for “Cause.” If a Business Unit President is terminated without cause
a pro rata bonus will be paid to him following the conclusion of
fiscal year 2010, in no event later than December 15, 2010.
*Indicates
redacted.
ICO,
Inc.
FY
2010 Annual Incentive Bonus Plan Matrix- Business Unit Presidents
FY
2010 Operating Income Targets
Pay-out
as a percentage of base salary
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Business
Unit
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0%
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50%
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100%
|
IPNA
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*
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*
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*
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Bayshore
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*
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*
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*
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Europe/Asia
Pacific
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*
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*
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*
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*Indicated
redacted.
ICO,
Inc.
FY
2010 Annual Incentive Bonus Plan Matrix- Business Unit Presidents
FY
2010 Cash Flow From Operations
Pay-out
as a percentage of base salary *
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Business
Unit
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0%
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50%
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100%
|
IPNA
|
*
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*
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*
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Bayshore
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*
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*
|
*
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Europe/Asia
Pacific
|
*
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*
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*
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Total
of above
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*
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*
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*
|
*Indicated
redacted.
ICO,
Inc.
FY
2010 Annual Incentive Bonus Plan Matrix- Business Unit Presidents
FY
2010 ROIC Targets
Pay-out
as a percentage of base salary
|
|||
Business
Unit
|
0%
|
50%
|
100%
|
IPNA
|
*
|
*
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*
|
Bayshore
|
*
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*
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*
|
Europe/Asia
Pacific
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*
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*
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*
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Approximate
ROE achieved at ROIC Targets above
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*
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*
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*
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*Indicates
redacted.