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Eagle
Global Logistics – Incentive Bonus Plan 2007
Applicable to: Global Corporate Management
and Staff
SUMMARY
The 2007 Incentive Bonus Plan for Global Corporate Management
and Staff (the "Plan") is a semi-annual plan paid
semi-annually.
Global corporate management and staff positions (other than
Sales positions participating in another incentive plan) will be
eligible for Incentive Bonus subject to EGL, Inc. (the "Company")
achieving certain operating income performance targets.
Amounts available for payout will be determined with
reference to (1) the Company’s performance against its
strategic Focus on Five initiatives, (2) departmental performance
against established goals and (3) the employee’s personal
performance against established goals, each for a percentage of the
total available incentive as determined by the employee’s
grade, if applicable, and/or job title. See attached NORTAM
matrix by component and job grade/title. Foreign
divisions will adjust bands and grade levels accordingly.
1.
TARGET INCENTIVE BONUS AMOUNT
Target incentive amounts will be calculated as a percent of
non-incentive wages.
2.
OPERATING INCOME QUALIFICATION REQUIREMENTS FOR INCENTIVE
The Operating Income Qualification Matrix is the sliding scale
that determines how much of the Target Incentive bonus will be
eligible for payout for each Incentive Period, not to exceed in the
aggregate twenty percent (20%) of the Company’s operating
income for the Incentive Period. If the Company program
would payout above the 20% operating income maximum, payouts will
be adjusted downward on a pro rata basis. The minimum threshold for
eligibility is 75% of budgeted operating income. Maximum
incentive is 120% of non-incentive wages.
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2007 Operating
Income Qualification Matrix
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January 1 to June
30 Incentive Period
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July 1 to December
31 Incentive Period
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150%
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120% of budgeted
operating income
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120% of budged
operating income
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100%
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100% of budgeted
operating income
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100% of budgeted
operating income
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75%
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87.5% of budgeted
operating income
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87.5% of budgeted
operating income
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50%
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75% of budgeted
operating income
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75% of budgeted
operating income
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0%
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less than 75% of
budgeted operating income
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less than 75% of
budgeted operating income
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3.
EGL, INC. "FOCUS ON FIVE" STRATEGIC INITIATIVES
Executive management has established performance metrics and a
payout scale associated with each of the five components of the
Company’s overall Focus on Five strategic management plan, as
set forth below. The metrics associated with each of the
Focus on Five performance metrics will account for a certain
percentage of the target Company performance portion of the total
incentive. Achievement of the performance metrics will
determine incentive amounts available for the payout for the
Company performance portion of the total incentive.
2007 Corporate and
Regional Management and Staff Incentive Bonus Plan
Page 1 of 10
Eagle
Global Logistics – Incentive Bonus Plan 2007
Applicable to: Global Corporate Management
and Staff
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2007 Focus on Five
Strategic Initiatives Matrix
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Focus on Five
Initiative
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Incentive Payout
Percentage
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0%
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50%
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100%
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150%
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Customer
Satisfaction
25% Component
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A.
< 80% on time service
B.
< 90% milestone updates
C.
<90% POD updates within 24 hours
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A.
80% on time
service
B.
90% milestone
updates
C.
90% POD updates within 24 hours
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A.
90% on time service
B.
95% milestone updates
C.
95% POD updates within 24 hours
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A.
95% on time service
B.
100% milestone updates
C.
100% POD updates within 24 hours
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People Development
15% Component
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< 5% reduction
in voluntary turnover rate
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5% reduction in
voluntary turnover rate
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7.5% reduction in
voluntary turnover rate
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10% reduction in
voluntary turnover rate
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Yield Management
15% Component
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> 5% below
budgeted net revenue margin
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5% below budgeted
net revenue margin
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budgeted net
revenue margin
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10% over budgeted
net revenue margin
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Cost Management
25% Component
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> 12% account
receivable over 60 days
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12% accounts
receivable over 60 days
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10% accounts
receivable over 60 days
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7% accounts
receivable over 60 days
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Revenue Growth
20% Component
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< 10% gross
revenue growth
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10% gross revenue
growth
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15% gross revenue
growth
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20% gross revenue
growth
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4.
DEPARTMENTAL/REGION/UNIT PERFORMANCE METRICS
Prior to the commencement of each Incentive Period, each
department will establish in conjunction with the department head
and senior management not more than three performance metrics,
achievement of which will determine incentive amounts available for
payout for the departmental performance portion of the total
incentive. Each department must have goals for the upcoming
Incentive Period established and approved by the department head
and senior management, and provid
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