Am I reading this right??
300k earned or NOT goes to the bonus plan
After the company earns 300k the
Bonus plan takes 50% of the next 4.8 Million
I wouldn't mind if they took 10% of earnings and max'ed it to 2.4 Million but
50%. I think that's a bit self serving.
-- Rich
biz.yahoo.com
Form 8-K for INNOVEX INC
25-Oct-2005
Entry into Material Agreement, Financial Statements and Exhibits
ITEM 1.01 Entry into a Material Definitive Agreement.
2006 Bonus Plan
On October 19, 2005, the Compensation Committee of the Board of Directors of Innovex, Inc. ("the Company") adopted, and recommended that the Company's Board of Directors adopt, the Fiscal Year 2006 Innovex, Inc. Bonus Plan (the "Bonus Plan") under which executive officers of the Company are eligible for cash bonuses. Also on October 19, 2005, the independent directors of the Company's Board of Directors ratified the adoption of the Bonus Plan.
The Bonus Plan has two components, corporate objectives and individual objectives. With respect to corporate objectives, the Compensation Committee has established performance targets to be met related to operating profit, new product development, operating performance of the Company's expanded Thailand facility, customer satisfaction and employee satisfaction. In addition, individual objectives for executive officers were established in connection with the Bonus Plan. If an executive officer meets his or her individual objectives, the executive officer is entitled to an additional cash bonus in an amount determined by the Compensation Committee with respect to each executive officer. The Company will establish and fund a corporate bonus pool from which cash bonuses relating to the corporate and individual objectives will be made under the Bonus Plan for all participating employees. The initial amount contributed to the pool will be $300,000. For each $1 of operating income above $300,000, the Company will make an additional contribution of $0.50 to the bonus pool, up to a maximum of $2.4 million in contributions to the pool. Executive officers will receive a cash bonus equal to a specified percentage of the bonus pool amount established by the Compensation Committee based upon performance of the executive officer's individual objectives and the Company's performance in fiscal year 2006 as against the performance targets and the position of such executive officer with the Company.
Under the Bonus Plan, the Company's Chief Executive Officer is eligible for a maximum aggregate bonus of up to 120% of his base salary at the end of the 2006 fiscal year if both corporate objectives and individual objectives are achieved. Under the Bonus Plan, executive officers of the Company, other than the Company's Chief Executive Officer, are eligible for maximum aggregate bonuses of between up to 70% and up to 80% of such executive officer's base salary at the end of fiscal year 2006. To the extent calculated bonus amounts under the Bonus Plan exceed the amount available under the bonus pool, as calculated above, the Compensation Committee will reduce the bonus amounts to be paid. |
