printer-friendly

Sample Business Contracts

2006 Success Sharing Plan - Convio Inc.

Sponsored Links

2006 Success Sharing Plan

Objectives

•
Provide strong incentives to achieve revenue and operating income plans

•
Allow employees to share in the company's results

•
Provide managers with the ability to award top performers

Eligibility/Administrative Guidelines

•
Includes all full-time employees and certain part-time employees (see second bullet) not on the following plans:

•
Commission

•
Account Management

•
Business Development

•
Consulting

•
Sales Support

•
Account Development

•
Part-time employees must be employed for twelve months prior to payout date

•
Employees hired in first half are eligible for the second half bonus while those hired in the second half are not eligible for a bonus

•
Employees on performance improvement plan at anytime during the 6 month period are not eligible

•
Employees must be actively on payroll at the time of payment to receive an award

•
All awards calculated on the employee's base salary at the end of the award period

 
  2005
  2006
Funding Components   50% Revenue
50% Operating Income
  50% Bookings
50% Operating Income
Corporate Performance Funding   1H
Revenue
<92.5% = 0%
92.5 – 99% = 50%
> or = 100% = 100%*
  Bookings
<90% = 0%
90 – 99% = 50%
> or = 100% = 100%*
    Operating Income
<95% = 0%
95 – 99% = 50%
> or = 100% = 100%*
  Operating Income
<95% = 0%
95 – 99% = 50%
> or = 100% = 100%
    2H
Revenue and Operating Income
<95% = 0%
95 – 99% = 50%
> or = 100% = 100%*
   
Employee Bonus Percent   Director: 4-12%
Manager: 3-9%
Employee: 2-6%
  Director: 4-12%
Manager: 3-9%
Employee: 2-6%
Individual Payout   50% Corporate performance paid out based on employee's bonus percent   50% Corporate performance paid out based on employee's bonus percent
    50% Individual performance paid out based on employee's bonus percent adjustable by managers based on employees performance   50% Individual performance paid out based on employee's bonus percent adjustable by managers based on employees performance
Timing   Halves—50% 1H and 50% 2H—stand alone   Halves—50% 1H and 50% 2H—year-to-date
    *Discretionary accelerators for over achievement in both operating income and revenue achievement   *Discretionary accelerators for over achievement in both operating income and revenue achievement

Payout Example

        Assumptions:

•
1H Corporate attainment is 100% = 100% funding/payout

•
Employee A is an individual contributor with an annual salary of $35,000 and is an average performer

•
Employee B is also an individual contributor with an annual salary of $35,000 and is a top performer

Employee A

 
  Corporate Component
  Individual Component
  Total
Annual Target   $ 700.00   $ 700.00   $
1,400
(35000*.04)
1H Target   $ 350.00   $ 350.00   $ 700.00
1H Payout   $ 350.00   $
175.00
(25% of pool)
  $ 525.00

Employee B

 
  Corporate Component
  Individual Component
  Total
Annual Target   $ 700.00   $ 700.00   $
1,400
(35000*.04)
1H Target   $ 350.00   $ 350.00   $ 700.00
1H Payout   $ 350.00   $
525.00
(75% of pool)
  $ 875.00