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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.

2007 Operating Income Qualification Matrix

January 1 to June 30 Incentive Period

July 1 to December 31 Incentive Period

150%

120% of budgeted operating income

120% of budged operating income

100%

100% of budgeted operating income

100% of budgeted operating income

75%

87.5% of budgeted operating income

87.5% of budgeted operating income

50%

75% of budgeted operating income

75% of budgeted operating income

0%

less than 75% of budgeted operating income

less than 75% of budgeted operating income

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

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Eagle Global Logistics – Incentive Bonus Plan 2007

Applicable to:  Global Corporate Management and Staff

 

 

 

2007 Focus on Five Strategic Initiatives Matrix

Focus on Five Initiative

Incentive Payout Percentage

 

0%

50%

100%

150%

Customer Satisfaction

25% Component

A.

< 80% on time service

B.

< 90% milestone updates

C.

<90% POD updates within 24 hours

A.

80% on time

service

B.

90% milestone

updates

C.

90% POD updates within 24 hours

A.

 90% on time service

B.

95% milestone updates

C.

95% POD updates within 24 hours

A.

 95% on time service

B.

100% milestone updates

C.

100% POD updates within 24 hours

People Development

15% Component

< 5% reduction in voluntary turnover rate

5% reduction in voluntary turnover rate

7.5% reduction in voluntary turnover rate

10% reduction in voluntary turnover rate

Yield Management

15% Component

> 5% below budgeted net revenue margin

5% below budgeted net revenue margin

budgeted net revenue margin

10% over budgeted net revenue margin

Cost Management

25% Component

> 12% account receivable over 60 days

12% accounts receivable over 60 days

10% accounts receivable over 60 days

7% accounts receivable over 60 days

Revenue Growth

20% Component

< 10% gross revenue growth

10% gross revenue growth

15% gross revenue growth

20% gross revenue growth

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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