2Incentive Compensation Clause Samples
The Incentive Compensation clause defines the terms under which additional compensation, beyond base salary or fees, is awarded based on the achievement of specific performance targets or milestones. Typically, this clause outlines the criteria for earning incentives, such as meeting sales goals, project deliverables, or other measurable objectives, and details the calculation and timing of such payments. Its core function is to motivate and reward individuals or entities for exceptional performance, aligning their interests with those of the organization and encouraging the attainment of desired outcomes.
2Incentive Compensation. In addition to Base Salary, Company may make Employee eligible for cash or equity awards pursuant to Company's Incentive Compensation Plan, if any, as may be applicable and adopted by Company. Except to the extent as otherwise provided in Article III in connection with a termination of Employee's employment, payment of incentive compensation will be subject to Employee achieving certain objectives set annually by the CEO and/or the Board of Directors (the "Board"), with the target amount of any cash incentive compensation for any calendar year to be approved by the Board, which target in no event shall be more than 30% (subject to performance of the specified objectives) of Employee's Base Salary in effect from time to time; provided, the 2019 cash incentive compensation will be pro-rated based on Employee's employment with the Company from the Agreement Date to December 31, 2019. Company shall pay any such incentive compensation for which Employee may be eligible for a calendar year on or before March 15 of the following year (provided that Employee is employed on such date). Employee will not be entitled to receive incentive compensation for any calendar year in which Employee's employment is terminated, except as may be provided in Article III.
2Incentive Compensation. Executive will be eligible to earn incentive compensation in the form of a semi-annual bonus for each fiscal year of the Company, to be awarded under the Company’s annual cash incentive plan as then in effect, with a target amount equal to Seventy Thousand Dollars ($70,000) (the “Target Bonus"). Executive's Target Bonus shall be reviewed annually by the Compensation Committee, and adjustments, if any, will be made at that time. The Compensation Committee will determine the actual amount of the bonus earned by Executive for any year, which may be more or less than the Target Bonus, and will base such determination upon both the Company's achievement of overall performance metrics for the year and Executive's achievement of individual performance metrics as agreed upon by the Compensation Committee and Executive. Earned bonus amounts, if any, shall be paid within two and one-half months following the end of each semi-annual period.
2Incentive Compensation. The Employee shall be eligible to receive an annual performance bonus, with a target amount equal to 40% of the Annual Salary, based upon the achievement of performance objectives established by the Board or CEO and subject to the terms of the applicable bonus plan(s). Bonus payouts, if any, will be paid no later than March 15 of the year following the calendar year to which the bonus is applicable, and will be pro-rated, as applicable, for approved leaves of absence.
2Incentive Compensation. Executive will be eligible to earn incentive compensation in accordance with the provisions set forth in Exhibit A.
2Incentive Compensation. In addition to Base Salary, Company shall make Employee eligible for such cash and equity awards pursuant to Company’s incentive compensation plan, if any, as may be applicable and adopted by Company. Except to the extent as otherwise provided in Article 3 in connection with a termination of Employee’s employment, payment of incentive compensation will be subject to Employee achieving certain objectives set annually by Employee and the Compensation Committee of the Board, with the target amount of any cash incentive compensation for any calendar year to be approved by the Compensation Committee of the Board, which target in no event shall be more than 50% (subject to performance of the specified objectives) of Employee’s Base Salary in effect from time to time (such bonus to be pro-rated for any partial year of employment). Employee and the Compensation Committee will meet and review the objectives set by the Compensation Committee for each upcoming calendar year before March 31 of such year. Company shall pay any such incentive compensation for which Employee may be eligible for a calendar year on or before March 15 of the following year (provided that Employee is employed on such date). Employee will not be entitled to receive incentive compensation for any calendar year in which Employee’s employment is terminated, except as may be provided in Article 3.
2Incentive Compensation. The Executive shall qualify for an annual incentive compensation payment pursuant to the terms of the Company’s Executive Officer Cash Incentive Program in effect at the date of this Agreement, and as amended at any future date or pursuant to any successor incentive program or arrangement adopted by the Company or the Bank for its officers (the “Incentive Program”). Notwithstanding any contrary terms of the Incentive Program, an annual payment if earned under the Incentive Program for a fiscal year shall be paid to the Executive no later than the 15th day of the third month following the end of the calendar year in which the annual incentive compensation payment is no longer subject to a substantial risk of forfeiture, provided that the Executive must still be an active employee with the Company on the date the incentive compensation payment is made by the Company to earn and receive the incentive compensation payment. If the Executive is not actively employed on the date the incentive compensation payment is made by the Company, Executive has not earned, and is not entitled to, such payment.
2Incentive Compensation. The Employee shall be eligible to receive an annual performance bonus, with a target amount equal to 40% of the Annual Salary, based upon the achievement of performance objectives established by the Board or CEO and subject to the terms of the applicable bonus plan(s). Bonus payouts, if any, will be paid no later than March 15 of the year following the calendar year to which the bonus is applicable, and will be pro-rated, as applicable, for approved leaves of absence. Notwithstanding the above, for the fiscal year ending December 31, 2021, the Employee shall be eligible for a full year annual performance bonus (at a target amount equal to 40% of the Annual Salary) which will not be pro-rated.
2Incentive Compensation. Executive may be eligible to earn annual cash bonuses as determined by the Board in its discretion and subject to the terms of any written document creating an annual bonus plan as the Board may adopt in its sole discretion. In addition, Executive will be eligible for variable compensation as expressly provided for in this Agreement.
2Incentive Compensation. Beginning in calendar year 2024, Executive will be eligible to earn an annual incentive bonus, the target amount of which will be a percentage of Executive’s base salary as reasonably determined by the Company’s Compensation Committee (the “Annual Bonus”). The target amount of the Annual Bonus for each calendar year of the Term will be up to 100% of Executive’s base salary based on the actual base salary earned by Executive during such calendar year (the “Target Annual Bonus Amount”); provided, however, that notwithstanding anything to the contrary contained in this Agreement, Executive will receive an Annual Bonus of no less than $350,000 for calendar year 2024, and provided further that Executive may be eligible for an Annual Bonus of up to 200% of Executive’s base salary in effect during the applicable Annual Bonus year, based on Executive’s exceptional performance during such year. Any Annual Bonus will be based on Company performance and Executive’s achievement of certain goals, which will be established in good faith by the Company’s Compensation Committee and the Board of Directors (the “Board”) and communicated to Executive in writing within sixty (60) days after the beginning of each fiscal year. The Annual Bonus payment will be less all required taxes and withholdings and, if earned by Executive, paid out in the next year no later than March 31 of such year following the year for which the bonus is earned. For avoidance of doubt, Executive will be entitled to any Annual Bonus that has been earned with respect to a particular bonus year so long as he is employed on December 31 of such year (regardless of whether he is employed on the date on which such Annual Bonus is actually paid).
2Incentive Compensation. Beginning in calendar year 2024, Executive will be eligible to earn an annual incentive bonus based on criteria similar to other senior executives of the Company (the “Annual Bonus”), provided that whether Executive receives an Annual Bonus, and the criteria used to determine the amount of such Annual Bonus, will be at the sole discretion of the Board but will not be less than the annual bonus of any other executive of the Company. The Annual Bonus payment will be less all required taxes and withholdings and, if earned by Executive, paid out in the next year no later than March 31 of such year following the year for which the bonus is earned. For avoidance of doubt, Executive will be entitled to any Annual Bonus that has been earned with respect to a particular bonus year so long as he is employed on December 31 of such year (regardless of whether he is employed on the date on which such Annual Bonus is actually paid).