Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Commercial Vehicle Group, Inc. | c63287e8vk.htm |
Exhibit 10.1
COMMERCIAL VEHICLE GROUP, INC.
2011 BONUS PLAN
2011 BONUS PLAN
Formula for Participants
BONUS = Salary x BF1 x BF2 x BF3
Bonus Factor 1 (“BF1” or “Target Factor”) = the factor awarded to participants in the plan (as a
percent of base salary).
Bonus Factor 2 (“BF2” or “The Company Factor”) is based on EBITDA, a non-GAAP financial measure
calculated by adding interest, taxes, depreciation and amortization to net income, and adjusted by
the Compensation Committee of the Board of Directors to eliminate the effects of gains and losses
on forward exchange contracts and other gains and losses or extraordinary income or expense not
foreseen at the time the 2011 Bonus Plan was established. The Compensation Committee of the Board
of Directors reserves the right to review, modify and approve the final adjusted EBITDA calculation
as it relates to the 2011 Bonus Plan for the sole purpose of ensuring that the bonus payments are
calculated with the same intentions for which the targets have been established for the current
year.
The target level payment is based on the Company’s business plan for the current year and would
result in a 100% payout. The minimum threshold level for a payout under the 2011 Bonus Plan is
based on the minimum acceptable performance of the Company resulting in a 50% payout. The maximum
potential payout under the 2011 Bonus Plan is set at 150% payout. Payments below the minimum
threshold or above the maximum potential payout are considered discretionary and are subject to
specific review and approval of the Compensation Committee of the Board of Directors.
Bonus Factor 3 (“BF3” or “The Individual Factor”) consists of a mix of measures specific to each
participant’s responsibilities and to reflect the results necessary for continued growth and the
Company’s short and long term objectives. Objectives for each position are assigned annually and
tie to the individual performance of each participant with respect to their specific
responsibilities in support of the overall company goals, including but not limited to: (1) cash
flow, (2) operating and cost reduction initiatives, (3) strategic initiatives, (4) product
development and (5) revenue growth. Such measures are important to the company’s immediate and
long-term objectives, require a significant effort on the individual’s part and support the
operating and financial targets for the 2011 business plan within each participant’s functional
area. The Compensation Committee of the Board of Directors reserves the right to review, modify and
approve, at its sole discretion, all BF3 percentages for plan participants.
The Compensation Committee of the Board of Directors further reserves the right, at its sole
discretion, to review and modify the formula and factors discussed above when determining specific
2011 bonus payments under the 2011 Bonus Plan to insure the awards are derived with the same
intention for which the targets and thresholds have been established for the current year.