Management Incentive Plan (MIP Clause Samples
A Management Incentive Plan (MIP) clause establishes a framework for rewarding key management personnel based on the achievement of specific performance targets or milestones. Typically, this clause outlines the eligibility criteria, the types of incentives offered—such as cash bonuses, equity awards, or profit-sharing—and the conditions under which these incentives are granted or forfeited. By clearly defining how and when management can earn additional compensation, the MIP clause motivates executives to align their efforts with the company’s strategic goals and helps attract and retain top talent.
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Management Incentive Plan (MIP. Purpose: To assist the Company in attracting and retaining key employees and to provide such persons with long-term incentives and rewards for superior performance and maximizing shareholder value. Participants: The participants (the “Participants”) in the MIP as of the Effective Time (the “Effective Date”) shall be: (i) members of the Key Management Team, and (ii) such other key employees of the Company who are selected from time to time by the CEO and CFO of the Company to participate in the MIP, are awarded MIP Units and are approved by the Board or an authorized committee thereof (the “Board”). For purposes of finalizing and executing the Employment Agreement Term Sheets with the members of the Key Management Team on or before execution of the Merger Agreement, the Parties agree that the vesting, forfeiture and related terms set forth in this MIP section of this term sheet shall apply only to the Key Management Team and that the vesting, forfeiture and related provisions that will be applicable to other management employees will be proposed by the Key Management Team after execution of the Merger Agreement, must be approved by Moon (between execution of the Merger Agreement and the Effective Time) to be effective and will be no more favorable to any such employees than the terms for the Key Management Team. MIP Units Available Under the MIP: Prior to closing, the Board will determine the total number of MIP Units available for allocation under the MIP. The holders of MIP Units shall be entitled to receive distributions equal to 15% of the Company’s distributable cash as and when distributed (the “15% MIP Distribution”) to holders of Equity Interests during any period all holders of Equity Interests have achieved at least a 9% IRR (“Target IRR”) and an IRR of not more than 14% (13% if the aggregate initial investment of the Key Management Team and the Additional Employees is equal to or greater than $22 million). During any period all holders of Equity Interests have achieved an IRR in excess of 14% (13% if the aggregate initial investment of the Key Management Team and the Additional Employees is equal to or greater than $22 million), the holders of MIP Units shall be entitled to receive distributions equal to 20% of the Company’s distributable cash as and when distributed (the “20% MIP Distribution”). MIP Units shall be entitled to receive on each Distribution Date on which a MIP Distribution is made or Scheduled Liquidity Event date an allocable shar...
Management Incentive Plan (MIP. Participation: You will participate in the MIP at the Tier 1 level.
Management Incentive Plan (MIP. 7 If your Last Day of Active Employment occurs during the plan year, you will receive a lump sum payment, as soon as practical, based on your MIP target, prorated for the number of months of service during the plan year of your termination in which you worked 15 days or more. If your Last Day of Active Employment is after the end of the plan year, but before MIP payout, payout of the prior year MIP will be based on actual Company and your individual performance achievement. Any payout due will be paid at the normal time of MIP payout. Same, if you are retirement eligible and terminate prior to December 1 of the plan year. Same, if you are retirement eligible and terminate on or after December 1 of the plan year, but before MIP payout for that year. 7 Senior Vice Presidents and above will receive their MIP award, prorated for the number of months of service during the plan year in which they worked 15 days or more, at the normal payout time, based on actual Company and individual performance achievement. Note that this summary applies only to severance situations. Please see the MIP Administrative Guidelines for payout information in other situations, such as retirement. Pg. 14 Performance Share Plan (PSP) Prorated shares, based on the number of months of active service during the three-year performance period, are paid at the end of the three-year performance period based on actual Company performance. Detailed account information is available at ▇▇▇.▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ with your User name and password. If you have not already done so, it is important that you open your personal brokerage account on the ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ website prior to a PSP payout so that your shares can be deposited at the time of the PSP payout. Failure to open your personal brokerage account could result in your losing your PSP shares. Same, if you are retirement eligible. If you are not retirement eligible, you will forfeit any of your unvested PSP awards. No unvested PSP awards will be paid to you. Pg. 15 Bridging to Early Retirement If you are at least age 53 with at least eight (8) years of service, and you are a participant in the Retirement Plan, you will be granted a “bridge” to early retirement eligibility provided that you sign, and do not revoke, a Severance Agreement and General Release. If you are bridged to early retirement, you will be entitled to retirement benefits including an immediate pension benefit. If you decline to sign a Severance Agreement and General Release, ...
Management Incentive Plan (MIP. Whilst in the position of President, Europe you are eligible to participate in the Management Incentive Plan (MIP). Your On Target Bonus will be £525,000 per annum, payable annually in arrears. In your first year, 50% of your pro-rated annual on-target bonus will be guaranteed and paid out in December 2024. The specific scheme rules can be accessed via the intranet. The Company reserves the right to review and/or vary the terms and conditions, commission rates and targets set out in the Scheme (and/or to withdraw the scheme completely) at its absolute discretion. You will be advised of any material changes to the Scheme at the earliest practicable opportunity. Your entitlement to participate in the Management Incentive Plan shall cease upon termination of your employment and any part payment that may be due will be calculated and paid as per the commission scheme rules. Award of an incentive payment in one year shall not entitle you to payment in subsequent years.
Management Incentive Plan (MIP. Though the current evaluation of the 2006 plan results does not suggest that a 2006 M.I.P. payment will be provided, should there be a change in those results, you will be paid any earned 2006 M.I.P. as would be calculated per the 2006 M.I.P. provisions. Pursuant to the terms of Section 2(a)(ii) of the Severance Benefit Agreement, and contingent upon your execution and non-revocation of a general release (attached as Exhibit A to this Agreement), you will be paid any earned 2007 M.I.P. based on the 2007 M.I.P. provisions. Any payment of the 2007 M.I.P. will be based on your latest annualized salary ($198,816.00) prorated for the time of your active employment. The 2007 M.I.P. target payout percentage will be consistent with Management Level I-P (45.0%); a personal performance percentage of 70%; and will be paid at the same time that all 2007 M.I.P. payments are made to participants.
Management Incentive Plan (MIP. Commencing with fiscal year 2026 (starting July 1, 2025), you will be eligible to participate in an annual cash bonus plan (as may be in effect from time to time, the “MIP”), pursuant to which you will be eligible to earn an annual cash bonus (the “Annual Bonus”), with a target Annual Bonus opportunity equal to 100% of your base salary, and with the actual Annual Bonus ranging from 0% to 200% based on performance targets as determined by Amcor in its sole discretion. Under the terms of the MIP as currently in effect, any payment of Annual Bonus is subject to you being employed with Amcor on the date of payment as well as you not having received or given notice of termination of your employment and remaining in good standing as of such date. The terms of the MIP are described in the relevant governing documents and may be modified by Amcor from time to time in its sole discretion. For the avoidance of doubt, from the Closing Date through the end of the applicable performance period, you will continue to participate in and be eligible for payment under the B▇▇▇▇ annual bonus arrangement in which you were participating as of the Closing Date in accordance with the terms and conditions of such arrangement, with performance calculated as of immediately prior to the Closing Date by the B▇▇▇▇ Compensation Committee.