printer-friendly

Sample Business Contracts

Annual Cash Incentive Plan for Fiscal Year 2011 - Annie's Inc.

Sponsored Links

Exhibit I

COMPENSATION COMMITTTEE APPROVAL FOR BONUS PLANS FOR FY2011

The Compensation Committee of Annie's Board of Directors has approved the following:

A new Bonus Plan for FY 2011 providing for a bonus pool of approximately $1.3 million if certain Company financial performance goals related to EBIT ($12.5 MM) and Net Sales ($105 MM) are achieved, along with personal performance goals (see Schedule II). At 100% achievement, current employees are eligible for awards aggregating $1.25MM. Higher awards are payable in the event the specified goals are exceeded.

May 25, 2010


/s/ Brian T. Murphy
Brian T. Murphy
For and on behalf of Annie's Inc. Compensation Committee

CC: Molly F Ashby
     Timothy Fallon
     Stephen L Palmer


Exhibit II FY2011 Bonus Award Plan


Financial Metrics

          YOY            YOY     FY2011 Goal     FY2010 Est         
     AH      incr.     AN      incr.     Total     Total      AN  

Gross Sales

   $ 105.7         16.3   $ 25.0         -2.9   $ 130.6        

Net Sales

   $ 84.7         14.3   $ 20.3         -4.0   $ 105.0      $ 95.2       $ 20.9   

Net Sales/Gross Sales

               80.4     

Operating Income

             $ 12.5      $ 7.7      

Net Income

             $ 10.4        

All Bonus Awards subject to EBIT of not less than 9 % of Net Sales

Actual Net Sales Achievement is increased by an additional $1 for every $ by which AN Net Sales exceed $20.3MM and decreased by an additional $ for each $ shortfall. No double dip on the AN override for overachievment.

Payout is subject to adjustment at discretion of the Compensation Committee if the Net Sales/Gross Sales Conversion Ratio is less than 79.7%.

 

Net Sales Target

   $105.0 MM   

Assumed $ pool at 100% achievement

      $554,660
Above achievement levels illustrated below, Bonus Pool is increased by $22,000 for each $500,000 increment in Net Sales

Net Sales            %     $  

Achievement

    (MM)      Payout     Payout  
  103.5   $ 108.68         135.0   $ 748,791   
  103.0   $ 108.16         130.0   $ 721,058   
  102.5   $ 107.63         125.0   $ 693,325   
  102.0   $ 107.11         120.0   $ 665,592   
  101.5   $ 106.58         115.0   $ 637,859   
  101.0   $ 106.06         110.0   $ 610,126   
  100.5   $ 105.53         105.0   $ 582,393   


   

    

   

 
  100.0   $ 105.01         100.0   $ 554,660   


   

    

   

 
  99.5   $ 104.48         95.0   $ 526,927   
  99.0   $ 103.96         89.0   $ 493,647   
  98.5   $ 103.43         82.0   $ 454,821   
  98.0   $ 102.91         74.0   $ 410,448   
  97.5   $ 102.38         66.0   $ 366,076   
  97.0   $ 101.86         58.0   $ 321,703   
  96.5   $ 101.33         51.0   $ 282,877   
  96.0   $ 100.81         44.0   $ 244,050   
  95.5   $ 100.28         37.0   $ 205,224   
  95.0   $ 99.76         31.0   $ 171,945   
  94.5   $ 99.23         24.0   $ 133,118   
  94.0   $ 98.71         17.0   $ 94,292   
  93.5   $ 98.18         10.0   $ 55,466   
  93.0   $ 97.66         5.0   $ 27,733   
  92.5   $ 97.13         0.0   $ 0   

EBIT Target

   $ 12.5 MM      

Assumed $ Pool at 100% achievement

      $ 747,925   

EBIT is net of Bonus Actually Earned

  

Planned Bonus Pool is assumed to be $1.3 MM

  


EBIT     EBIT      %     $  

Achievement

    $ MM      Payout     Payout  
  120   $ 15.00         135.0   $ 1,009,699   
  115   $ 14.38         130.0   $ 972,303   
  110   $ 13.75         120.0   $ 897,510   
  104   $ 13.00         110.0   $ 822,718   


   

    

   

 
  100   $ 12.5         100.0   $ 747,925   


   

    

   

 
  98   $ 12.25         97.0   $ 725,487   
  96   $ 12.00         94.0   $ 703,050   
  94   $ 11.75         90.0   $ 673,133   
  92   $ 11.50         86.0   $ 643,216   
  90   $ 11.25         80.0   $ 598,340   
  88   $ 11.00         73.0   $ 545,985   
  86   $ 10.75         66.0   $ 493,631   
  84   $ 10.50         58.0   $ 433,797   
  82   $ 10.25         50.0   $ 373,963   
  80   $ 10.00         40.0   $ 299,170   
  78   $ 9.75         30.0   $ 224,378   
  76   $ 9.50         20.0   $ 149,585   
 


Exhibit II FY2011 Bonus Award Plan (continued)

Summary of Plan Payout by Group at 100% achievement and Factor Weights by Group


     Approx
Target
% Salary
    Planned
Salary
FY 2011
     Proposed
Bonus Pool
FY 2011
    

Factor Weights

 
             Net Sales            EBIT            of which:Discretionary  

Exec Team

     38.8   $ 1,075,000       $ 417,500         40.0   $ 167,000         60.0   $ 250,500         20.0   $ 83,500   

Tier II

     22.4   $ 1,475,776       $ 330,994         40.0   $ 132,398         60.0   $ 198,596         30.0   $ 99,298   

Tier III

     11.3   $ 789,571       $ 89,152         40.0   $ 35,661         60.0   $ 53,491         40.0   $ 35,661   

Sales

     20.9   $ 1,606,278       $ 336,259         50.0   $ 168,129         50.0   $ 168,129         10.0   $ 33,626   

Goal Based

     9.0   $ 1,428,195       $ 128,680         40.0   $ 51,472         60.0   $ 77,208         40.0   $ 51,472   
  

   

    

    

   

    

   

    

   

 
     $ 6,374,820       $ 1,302,585         $ 554,660         $ 747,925         $ 303,557   


Exhibit III

Mark Mortimer - Additional Bonus Award Plan FY 2011


Measurement Period    YTD July 4
months
    YTD Oct 7
months
    Total
Potential
Bonus
 

Measure #1

      

Company Net Sales - AOP FY2011

   $ 31,013,719      $ 57,959,177     

Achievement Threshold

   $ 31,323,719      $ 59,697,952     
     1.0     3.0  

Bonus amount

   $ 5,000      $ 15,000      $ 20,000   

Minimum Company Total Sales Conversion Ratio

     81.4     80.8  
To be eligible, the Total Company Sales Conversion Ratio (Net Sales/Gross Sales) as reflected in the Company's internal financial statements for the relevant measurement period must exceed the Minimum Company Total Sales Conversion Ratio       

Measure #2

      

Grocery Channel Net Sales AOP FY2011

   $ 10,859,257      $ 20,830,596     

Achievement Threshold

   $ 11,945,183      $ 22,913,656     

Level of over achievement implied

     10.0     10.0  

Bonus amount

   $ 5,000      $ 10,000      $ 15,000   

Minimum Grocery Channel Sales Conversion Ratio

     78.9     77.6  
To be eligible, the Grocery Channel Sales Conversion Ratio (Net Sales/Gross Sales) as reflected in the Company's internal financial statements for the relevant measurement period must exceed the Minimum Grocery Channel Sales Conversion Ratio    

Total Bonus Potential

       $ 35,000   
Bonus awards are earned only if the achievement threshold is attained or exceeded. No pro-ration below the threshold.     
Bonus to be paid within 60 days after the end of the relevant measurement period, subject to continued employment and to approval of the Compensation Committee      
Any bonus(es) paid pursuant to this Additional Bonus Plan is (are) in addition to any other bonuses earned under the Company's regular FY2011 Bonus Plan      


Exhibit IV

Steven Jackson, Larry Waldman - Additional Bonus Award Plan for FY 2011

Target

If actual FY2011 COGS as reported in the Company's audited financial statements including any variances stated therein are less than FY2011 Pro-Forma COGS, the total bonus amount payable under this Additional Bonus Plan will be equal to 10% of such difference.

This bonus amount shall be shared equally between Steven Jackson and Larry Waldman, and shall be paid upon completion of the Company's FY2011 Audited Financial Statements, subject to 1) review and approval of the Compensation Committee of the Board, 2) continued employment of Mr. Jackson and Mr. Waldman on the date of payment and 3) other conditions generally applicable to Company Bonus Awards.


* FY2011 Pro Forma COGS are defined as the product of 4/1/2010 standard case cost per item multiplied by actual FY2011 cases per item minus all Budgeted FY2011 Manufacturing Variances**

Standard COGS

   $ 67,268,093      Standard Costs at 4/1/2010 AOP Cases per item
Budgeted FY2011 Manufacturing Variances are as follows:     

Physical Inventory

   ($ 25,000   Budgeted Shrink/Count Adjustments

Freight In

   ($ 750,000   Inbound Freight on Materials

Manufacturing Variances

   ($ 375,000   Budgeted Negative Variances

PPV Quantity

   $ 1,114,996      Cost reduction Improvement planned (of which $428 is rollover)

Obsolete

   ($ 300,000   Budgeted inventory write-offs/disposals

Standard Cost Adjustment

   $ 275,000      Budgeted price increases

MFG variance - vendor discounts

   $ 1,150,000      Budgeted promotional discounts to be taken for prompt/early payment

Total Budgeted FY2011 Manufacturing Variances

   $ 1,089,996      Favorable Variance

For reference only:

    

AOP COGS

   $ 66,178,097     

Example:

    

If Case Mix is unchanged and Actual COGS =

   $ 65,500,000     

Planned COGS including planned favorable variances

   $ 66,178,097     

Net savings

   $ 678,097     

10% of savings

   $ 67,810     

Share of Pool

    

Jackson

   $ 33,905     

Waldman

   $ 33,905     

Any Additional Bonus Awards are in addition to bonuses paid pursuant to the FY2011 Bonus Plan