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As Of Filer Filing For·On·As Docs:Size Issuer Agent 11/05/04 Geo Group Inc 10-Q 9/26/04 8:346K Bowne of Atlanta Inc/FA |
Document/Exhibit Description Pages Size 1: 10-Q The Geo Group Inc. HTML 246K 2: EX-10.1 Material Contract 10 52K 3: EX-10.2 Material Contract 10 52K 4: EX-10.3 Material Contract HTML 15K 5: EX-31.1 Certification per Sarbanes-Oxley Act (Section 302) HTML 12K 6: EX-31.2 Certification per Sarbanes-Oxley Act (Section 302) HTML 12K 7: EX-32.1 Certification per Sarbanes-Oxley Act (Section 906) HTML 8K 8: EX-32.2 Certification per Sarbanes-Oxley Act (Section 906) HTML 8K
| Exhibit 10.3 |
EXHIBIT 10.3
Senior Management Incentive Plan
Target Incentive Award
Each participant is assigned a Target Incentive Award expressed as a percentage of base salary in effect on December 31st of the plan year. The eligible positions and target award percentages for participants are as follows:
| Target | ||||
| Position |
(% of Salary) |
|||
CEO |
150 | % | ||
President |
120 | % | ||
CFO |
50 | % | ||
Sr. Vice President |
45 | % | ||
Plan Year
The period over which performance will be measured is the Company’s fiscal year (January 1st – December 31st ).
Performance Measures and Weightings
| The plan will measure two financial items which will be weighted as follow: |
Net Income After Tax |
— | 65 | % | |||||
Revenue |
— | 35 | % |
Award Determination
Based on performance achieved during the year for Revenue and Net Income After Tax, the participants’ award payouts will be a function of performance against pre-established goals for each measure. The following chart shows this relationship.
| Payout as % of | ||||||||||||
| Target Award |
||||||||||||
| Performance | Actual Results as % of | Net Income | ||||||||||
| Achieved |
Business Plan |
Revenue |
After Tax |
|||||||||
Maximum |
120 | % | 150 | % | 150 | % | ||||||
Target |
100 | % | 100 | % | 100 | % | ||||||
Threshold |
80 | % | 50 | % | 50 | % | ||||||
Below Threshold |
<80 | % | 0 | % | 0 | % | ||||||
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EXHIBIT 10.3
Definition of Corporate Income
This definition excludes extraordinary items and changes in accounting principles, as defined by GAAP.
Extraordinary items, as defined by GAAP, include items of a very unusual and infrequent nature, a good example of which is loss incurred in the early extinguishment of debt.
Changes in accounting principles include those that occur as a result of new pronouncements or requirements issued by accounting authorities such as SEC, FASB, etc.
Non-recurring and unusual items not included or planned for in the budgeted bonus targets may be excluded from the corporate income before income taxes, as defined, at the recommendation of management and at the discretion and agreement of the Compensation Committee.
Discretionary Adjustment
For plan participants other than the CEO and President (who shall not be eligible for the discretionary adjustment), the CEO may recommend an adjustment to an individual’s Incentive Award, subject to review and approval by the Compensation Committee. Individual adjustments will be based upon position as follows:
| Multiply | ||||
| Position |
Award by up to: |
|||
CFO, Sr. Vice Presidents |
150 | % | ||
Form and Timing of Payments
Payments will be made in cash as soon as practicable after the award amounts are certified by the Compensation Committee of the Board of Directors as having been met.
Change in Status
In the event that a participant’s status changes during the plan year, whether due to a promotion, demotion or lateral move, awards for all participants will be prorated on a monthly basis for the year based on the length of time in each position.
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EXHIBIT 10.3
Termination of Employment
In the event a participant voluntarily terminates employment or is terminated involuntarily, any award for the year in which the termination occurs will be forfeited.
Withholding
The Company shall withhold from award payments any federal, state or local taxes required to be withheld.
Discontinuance, Termination of Amendment of Plan
This plan has been established with the bona fide intention and expectation that from year to year it will be deemed advisable to continue it. However, The GEO Group, Inc. realizes that it may be necessary to terminate the plan, suspend it, or amend it from time to time. The Committee therefore reserves the right, in its sole discretion, to modify, suspend, discontinue or terminate the plan.
Governance
The plan shall be governed by the Compensation Committee of the Board of Directors of The GEO Group, Inc. The plan shall be administered on a day-to-day basis by the CEO and the Vice President of Human Resources.
3
