Attached files
file | filename |
---|---|
10-K - FORM 10-K FOR FISCAL YEAR ENDED DECEMBER 31, 2009 - TESCO CORP | tesco200910k.htm |
EX-21 - SUBSIDIARIES OF TESCO CORPORATION - TESCO CORP | tesco21.htm |
EX-23 - CONSENT OF PRICEWATERHOUSECOOPERS LLP - TESCO CORP | tesco23.htm |
EX-31.2 - SECTION 302 CERTIFICATION OF CFO - TESCO CORP | tesco312.htm |
EX-31.1 - SECTION 302 CERTIFICATION OF CEO - TESCO CORP | tesco311.htm |
EX-32 - SECTION 906 CERTIFCATIONS OF CEO AND CFO - TESCO CORP | tesco32.htm |
Exhibit
10.21
TESCO
CORPORATION
2010
SHORT TERM INCENTIVE PLAN
(EMT—Levels
5 and 6)
The Tesco
Corporation Short Term Incentive Plan (“STIP”) is a compensation plan designed
to motivate participating employees of TESCO and its affiliates to work as a
team to accomplish the overall profitability goals of TESCO, as well as provide
incentive to each individual to meet his or her business unit, business line and
personal objectives.
The STIP
is approved by the Board of Directors of TESCO and is reviewed annually and may
be modified or discontinued in the sole discretion of the Board of Directors.
The STIP for calendar year 2010 has been approved by the Board of Directors as
set forth below.
Plan
Parameters
In order
to reward employees for individual performance, taking into account Company
financial objectives, the STIP is structured with two specific areas to measure
performance:
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Financial
Objectives: Adjusted Earnings Before Interest, Taxes, Depreciation,
and Amortization (“Adjusted EBIDTA”)..
For purposes of this plan, “Adjusted EBITDA” consists of earnings (net
income or loss) available to common stockholders before interest expense,
income tax expense, non-cash stock compensation, non-cash impairments,
depreciation and amortization and other non-cash
items.
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Personal
Objectives: Individual performance against established
objectives
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The
following applies to employees covered by the 2010 STIP:
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The
incentive is expressed as a percentage of base salary, with the targets
and percentage allocations approved by the Board of
Directors.
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30%
of the incentive is based on an Adjusted EBITDA target approved by the
Board of Directors.
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70%
of the incentive is based on achievement of personal objectives. The
personal goals, if met, will be paid regardless of the Company’s financial
objective accomplishments.
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Executive
Management Team (Levels 5 and 6; “EMT”) members who qualify may have an
additional multiplier applied to their STIP payout, based on an additional
earnings-per-share (“EPS”) target approved by the Board of Directors. After
calculating financial Adjusted EBITDA performance and personal objectives, a
payout will be reached that is the sum of these two percentages. This will be
multiplied by an EPS-based factor between 1.0 and 2.0.
Objectives
and Payout:
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In
the event that TESCO records negative net income for the year ending
December 31, 2010, there will be no payments under the
plan.
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Calculations
are based on employee’s aggregate base salary earned during the program
year.
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The
Board of Directors will approve the payouts of each member of the EMT and
review and approve the remaining STIP participant payouts as a
group.
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The
incentive payout will be made in the payroll currency of the plan
participant.
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Payout
is made no later than March 15 of the following year. STIP payouts are
based on audited financial results.
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Employment
Status
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Employees
entering the plan during the year will have their STIP payout calculated
using their aggregate base salary earned while in the
plan.
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Employees
terminated for cause or resigning at any time prior to December 31,
2010 will not receive any payment under the
STIP.
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Employees
terminated at any time prior to September 30, 2010 will not receive any
payout under the STIP. If terminated, except for cause, in the fourth
quarter, their payout will be calculated using their aggregate base salary
earned while in the plan, dependent on all plan parameters being
met.
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Employees
terminated or resigning from the Company after December 31, 2010, but
before the payout date, will receive their payout in accordance with the
STIP at the same time as other
recipients.
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The
Company reserves the right to modify responsibilities and positions as may
be required from time to time. Such modifications may result in the future
ineligibility of an employee for participation in the STIP. In such cases,
any earned incentive will be calculated using their aggregate base salary
earned while in the plan.
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Situations
not covered above will be resolved by the President and Chief Executive
Officer, whose determination shall be
final.
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Death,
Disability and Retirement
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If
an employee’s employment status changes due to death, disability or
retirement (at normal retirement age) his or her STIP payment will be
calculated using their aggregate base salary earned while in the
plan.
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