EX-10.17 8 g74165ex10-17.txt SENIOR MANAGEMENT BONUS PLAN EXHIBIT 10.17 THE WACKENHUT CORPORATION SENIOR MANAGEMENT BONUS PLAN FOR FISCAL 2001 Eligibility and Eligibility in this plan is limited to the Senior Officers, Participation which presently includes the following: - EVP & President -- North American Operations Group - EVP -- Chief Financial Officer - SVP & President -- Wackenhut International, Inc. - SVP -- Corporate Planning & Development and President & CEO, Wackenhut Resources, Inc. - SVP -- Human Resources Target Incentive For fiscal year 2001, the percentages defined for each Awards participant are shown below.
Target Incentive Award Position As a Percent of Base Salary -------- --------------------------- EVPs 35% SVPs 35%
Corporate Business Unit Performance Performance Measures Participants Participants Measures --------------------- ------------ ------------- Corporate Revenues 30% 30% Corporate Income Before Tax 70% 30% Business Unit Service Profit 0% 40% --- --- Total 100% 100%
Definition of This definition excludes extraordinary items and changes in Corporate accounting principles, as defined by GAAP. Income Extraordinary items, as defined by GAAP, include items of a very unusual and infrequent nature, a good example of which is a loss incurred in the early extinguishment of debt. Changes in accounting principles 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 Nominating and Compensation Committee. Page 1 of 2 Award Based on performance achieved during the year, a Determination participant's award payout will be a function of performance against pre-established goals for each performance measure, as shown in the following chart: Performance Payout as Percent Achieved of Target Incentive Award ----------- ------------------------- Outstanding 150% Target 100% Threshold 50% Below threshold 0% Threshold, Target, and Outstanding performance levels will be defined at the beginning of each year for each performance measure. Discretionary For other plan participants, the CEO and COO may recommend Judgment an adjustment to an individual's incentive award to reflect individual performance. All recommended adjustments will be subject to review and approval by the Committee. Adjustments will be based on the following guidelines: Evaluation of Multiply Individual Performance Award By: ---------------------- --------- Outstanding 150% Normal Performance 100% Clearly below desired 0%-80% Governance The Nominating and Compensation Committee of the Board of Directors of The Wackenhut Corporation is responsible for the administration and governance of the plan. Actions requiring Committee approval include final determination of plan eligibility and participation, identification of performance goals, and final award determination. The decision of the Committee shall be conclusive and binding on all participants.
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