A management bonus clause outlines the conditions under which a company's managers are eligible to receive additional compensation beyond their regular salary. It typically specifies performance metrics, financial targets, or other criteria that must be met for the bonus to be awarded.
(c) Management Bonus. Executive will be entitled to be eligible for a Management Bolus Target of up to 100% of Base Salary, with the determination of whether and to what extent Executive has earned such bonus to be determined at the sole discretion of the Board, provided such bonus is dependent upon overall Company performance and Executive performance (“Management Bonus”).
Fiscal 2019 Cash Incentive Bonuses. On April 23, 2019 the Compensation Committee approved target incentive cash compensation for our executive officers for 2019 under our Management Bonus Plan (the “Management Bonus Plan”). The Company’s executive officers were eligible to participate in the Management Bonus Plan, which provided for the opportunity to earn quarterly and annual bonuses based on corporate and individual performance during the fiscal year. Bonuses under the Management Bonus Plan are based on each executive officer’s annual target cash incentive opportunity (established as a percentage of each executive officer’s base salary, referred to as the “Target Bonus”). For each executive officer, 85% of the cash bonus opportunity under the Management Bonus Plan was evaluated based on multiples (ranging from 0 to 2) of the Target Bonus based on performance of the Company against corporate goals and objectives as approved by the Compensation Committee for the applicable measurement period, 65% of which was based on quarterly financial and operating performance and paid out quarterly, and 35% of which was based on annual corporate goals and objectives and paid out annually. In addition, for each executive officer, an additional 15% of their cash bonus opportunity under the Management Bonus Plan was evaluated based on a multiple (ranging from 0 to 1) of the Target Bonus based on individual performance against annual individual goals and objectives as approved by the Compensation Committee and paid out annually. Under this Management Bonus Plan, bonuses based on corporate goals and objectives were limited to no more than twice the amount of 85% of the applicable executive officer’s Target Bonus, and bonuses based on individual goals and objectives were limited to no more than 15% of the applicable executive officer’s Target Bonus. The Compensation Committee may increase or decrease bonuses calculated under the Management Bonus Plan in its discretion based on corporate or individual performance.
Bonus Opportunity: For the period from July 1, 2019 through December 31, 2019, your target bonus opportunity under the Corporation’s Management Bonus Plan will be increased by $450,000, or $900,000 if annualized. For the avoidance of doubt, your total target bonus opportunity for the full second half of 2019 will be $850,000, and your total target bonus opportunity for the full year 2019 will be equal to $1,250,000. Your target bonus opportunity will return to its present level of 100% of base salary as of January 1, 2020.
Management Bonus Plan: You will be eligible to participate in our Management Bonus Plan. Your target bonus is 150% of earned annual base pay, and your maximum bonus payout is 300% of earned annual base pay. Bonus criteria are reviewed each year, in good faith consultation with you, and may change from time to time. Notwithstanding the foregoing, for the 2019 calendar year only, your bonus payout will be equal to the fixed amount of $1,275,000 to be paid on or before March 15, 2020, subject to the following modification: To the extent the actual corporate bonus payout percentage based on Company performance for 2019 (including the impact of any discretionary adjustment by the Board and its Organizational Development & Compensation Committee which is generally applicable to employees of the Company) is greater than target, then your 2019 bonus payout above will be increased by an amount equal to the difference between the actual payout percentage and the target payout percentage, multiplied by your target percentage and applied to your earned annual base pay for the portion of 2019 you are employed by the Company.1
Profit Bonus Opportunity: Under the Employment Agreements, the Executives shall participate in AQSP's management bonus pool, generally described as follows: During the 4th quarter of each year, the Chairman of the Compensation Committee of AQSP's Board of Directors shall unanimously agree with the Executives, Erik S. Lundgren ("ESL"), and Nicholas S. Warrender ("NSW") upon an EBITDA target amount for the following year. In the event that the foregoing parties are unable to unanimously agree on an EBITDA target for the following year, the EBITDA target for the following year shall default to the actual EBITDA for the year preceding the following year. If AQSP's actual EBITDA during such following year exceeds that EBITDA target amount, then a total of 33% of the amount (if any) by which AQSP's actual EBITDA during such following year exceeds that EBITDA target amount will be set aside by AQSP as a cash management bonus pool, and such cash will be allocated and paid out by AQSP as bonuses or fees to the officers of AQSP and its subsidiaries (and potentially, to directors and/or third parties who have significantly helped AQSP during such following year), with the allocation of such management bonuses to be determined by unanimous written agreement of the Executives , ESL, and NSW.
(c) You will remain eligible for a 2019 management bonus under the terms of the Company’s Management Bonus Plan. Your management bonus will not be subject to any individual performance modifier, but it will be subject to any positive or negative adjustments or modifiers based on the Company’s performance under the terms of the Management Bonus Plan (including the impact of any positive or negative discretionary adjustment by the Board or its authorized delegates which is generally applicable to employees of the Company). Your management bonus will be paid at the same time bonuses are paid to active employees, but no later than March 8, 2020.
Executive Management Bonus Plan The Executive Management Bonus Plan award granted to the chief executive officer, Mr. Bradley, called for him to meet as many as possible of six separate operational and financial objectives within the year 2021. The Compensation Committee assigned to each of those objectives a value as a percentage of base salary. The objectives and their weightings were as follows: to meet or exceed the Company’s quarterly budgeted earnings (25% each quarter, total of 100%), to raise up to $60 million of debt capital (60%), to renew or replace one of the specific warehouse credit facilities (50%), to execute three rated securitization transactions (30% each, 90% total), to increase the Company’s annual originations of receivables to each of four targets (100% in the aggregate, creditable in increments of 25% for reaching aggregate amounts of $800 million, $850 million, $900 million, and $950 million), and to cause the Company’s common stock to trade in excess of each of four targets (100% in the aggregate, creditable in increments of 25% for reaching prices of $4.50, $5.00, $5.50, and $6.00 per share).
Executive Management Bonus Plan The Executive Management Bonus Plan award granted to the chief executive officer, Mr. Bradley, called for him to meet as many as possible of seven separate operational and financial objectives within the year 2022. The Compensation Committee assigned to each of those objectives a value as a percentage of base salary. The objectives and their weightings were as follows: to meet or exceed the Company’s quarterly budgeted earnings (25% each quarter, total of 100%), to execute four rated securitization transactions (25% each, 100% total), to increase the Company’s annual originations of receivables to each of four targets (100% in the aggregate, creditable in increments of 25% for reaching aggregate amounts of $1.1 billion, $1.15 billion, $1.20 billion, and $1.25 billion), to originate $50 million each of non-prime and deep independent dealer paper (100% in the aggregate, creditable in increments of 50% for each of the origination targets), to maintain the annualized delinquency rate or lower by one percent (25% if the rate is maintained or 50% if the rate is lowered by one percent ), to maintain the annualized loss rate or lower by one percent (25% if the rate is maintained or 50% if the rate is lowered by one percent) and to cause the Company’s common stock to trade in excess of each of four targets (100% in the aggregate, creditable in increments of 25% for reaching prices of $12.00, $13.00, $14.00, and $15.00 per share).
5.1.1 Management Bonus. Provided the Board of Directors determines certain Employer metrics have been met, Employee shall be eligible to receive an annual discretionary bonus of up to fifty percent (50%) of the Base Salary (the “Management Bonus”). Nothing herein shall limit the Management Bonus to fifty percent (50%) of the Base Salary if the target/“on plan” performance objectives referenced below are exceeded, as specified in the Board determined and approved Management Bonus program. The Management Bonus shall be determined as follows: (i) twenty percent (20%) of each annual bonus (if earned) will be based on Employee’s individual performance; and (ii) eighty percent (80%) of each annual bonus (if earned) will be based on corporate performance objectives, each as determined in the sole and absolute discretion by Employer’s Board. If a determination is made by the Board to pay the Management Bonus, it will be paid upon satisfactory filing of the Company’s Annual Form 10-K of the year following the fiscal year in which such bonus may have been earned. The determination by the Board to pay a Management Bonus will be uniform among similarly situated employees of the Employer without bias to Employee. For the purposes of clarity, all Management Bonuses require continued employment by the Employee at the date of payment. Any deviation, modification or deviation to this employment requirement shall be at the sole and absolute discretion of the Board.
Management Bonus Plan: You will be eligible to participate in our Management Bonus Plan. Your target bonus is 60% of earned base pay. Payout targets and bonus criteria are reviewed each year and may change from time to time.
Executive Management Bonus Plan The Executive Management Bonus Plan award granted to the chief executive officer, Mr. Bradley, called for him to meet as many as possible of seven separate operational and financial objectives within the year 2019. The Compensation Committee assigned to each of those objectives a value as a percentage of base salary. The objectives and their weightings were as follows: to meet the Company’s quarterly budgeted earnings (25% each quarter, total of 100%), to raise $70 million or more of new capital (50%), to renew or replace each of two designated existing warehouse credit facilities on terms equal to or better than those pre-renewal (50%), to acquire a material new servicing portfolio (100%), to execute three rated securitization transactions after the first quarter of 2019 (40% each, 120% total), to achieve annual originations of receivables exceeding each of five targets (100% in the aggregate, creditable in increments of 20% for reaching aggregate amounts of $800 million, $850 million, $900 million, $950 million, and $1.0 billion), and to cause the Company’s common stock to trade in excess of each of four targets (80% in the aggregate, creditable in increments of 20% for reaching prices of $5.00, $5.50, $6.00 and $6.50 per share).
CALCULATION OF MANAGEMENT BONUSES The Executive, as Chief Executive Officer of Flagship, will be entitled to Management Bonuses as set forth below and otherwise on the terms and conditions set forth in this Agreement. The Management Bonuses shall be defined as twenty-five percent (25%) of Flagship’s net income available in free cash flows determined in accordance with GAAP for each calendar quarter during the Term. Notwithstanding anything to the contrary in this Exhibit A or elsewhere in this Agreement, the Management Bonus calculation shall be subject to an annual “true-up” based on the audited annual financial statements of Flagship for the applicable fiscal year, which shall occur promptly after receipt by Flagship of the applicable audited financial statements from its auditing firm. Flagship shall provide such audited annual financial statements to the Executive, along with the resulting true-up of the Management Bonus amount, if any, promptly after its receipt of such audited annual financial statements from its auditing firm. Any additional Management Bonus amounts determined to be owed by Flagship to the Executive pursuant to the true-up, or excess Management Bonus amounts determined to be owed by the Executive to Flagship pursuant to the true-up (as applicable), will be paid by the applicable Party to the other Party to within thirty (30) days after the applicable audited financial statements have been provided by Flagship to the Executive hereunder.
(h) The Executive and his legal, accounting and financial representatives shall be entitled, upon at least five (5) days’ prior written notice to Flagship and the Parent Company and during regular business hours, to inspect and copy all documents and records (including any financial statements and notes thereto) of Flagship or the Parent Company that reasonably related to the calculation of any element of the Executive’s compensation hereunder, including any Management Bonuses, it being agreed that any such information provided to the Executive or any of his legal, accounting or financial representatives shall be ‘Flagship/Parent Company Confidential Information subject to the restrictions on use and disclosure set forth in Section 5. If any dispute arises regarding any Management Bonus, Special Post-Closing Management Bonus, the amount of any termination or other payments made under Section 4(a), or any other economic or financial terms of this Agreement that has not been resolved by the Parties within fifteen (15) days, the Parties shall jointly engage the Independent Accountants under the Merger Agreement the “Independent Accountants”) and submit the disputed items to the Independent Accountants for resolution and the time period that would otherwise apply for payment thereof under this Agreement shall be delayed until such time as such resolution occurs
2021 Senior Management Bonus to Equity Plan 1. Purposes. The purpose of the Biodesix, Inc. 2021 Senior Management Bonus to Equity Plan (the “Plan”) is to provide certain designated employees of Biodesix, Inc., a Delaware corporation (the “Company”), or its subsidiaries with the opportunity to receive a portion of their annual cash bonus in the form of a Nonstatutory Stock Option (as defined under the Equity Incentive Plan). The Plan is a subplan of the Equity Incentive Plan.
6.1.1 Management Bonus. Provided the Board of Directors determines certain Employer metrics have been met, Employee shall be eligible to receive an annual discretionary bonus of up to fifty percent (50%) of the Base Salary (the “Management Bonus”). Nothing herein shall limit the Management Bonus to fifty percent (50%) of the Base Salary if the target/“on plan” performance objectives referenced below are exceeded, as specified in the Board determined and approved Management Bonus program. The Management Bonus shall be determined as follows: (i) twenty percent (20%) of each annual bonus (if earned) will be based on Employee’s individual performance; and (ii) eighty percent (80%) of each annual bonus (if earned) will be based on corporate performance objectives, each as determined in the sole and absolute discretion by Employer’s Board. If a determination is made by the Board to pay the Management Bonus, it will be paid upon satisfactory filing of the Company’s Annual Form 10-K of the year following the fiscal year in which such bonus may have been earned. The determination by the Board to pay a Management Bonus will be uniform among similarly situated employees of the Employer without bias to Employee. For the purposes of clarity, all Management Bonuses require continued employment by the Employee at the date of payment. Any deviation, modification or deviation to this employment requirement shall be at the sole and absolute discretion of the Board.
A Management Bonus is a form of incentive payment given to managers within an organization. It is typically awarded based on the company’s performance, the achievement of specific goals, or the individual performance of the manager. These bonuses are designed to motivate managers to achieve high-performance levels and align their objectives with the strategic goals of the company.
You should use a Management Bonus when you want to:
When crafting a Management Bonus section in a contract or an agreement, you should include:
Example:
Management Bonus:
The Company agrees to provide a Management Bonus to eligible Managers based on the following criteria:
- Eligibility: All Managers with a minimum of one year of service.
- Performance Metrics: Achievement of quarterly revenue targets and individual performance ratings of “Excellent” or above.
- Calculation Method: The bonus will be 10% of the Manager’s annual base salary for meeting the revenue target and achieving an excellent performance rating.
- Payment Schedule: Bonuses will be paid out annually in the first quarter of the subsequent fiscal year.
Management Bonuses are typically included in:
By understanding and effectively implementing a Management Bonus, organizations can ensure that their managerial team is motivated and aligned with the company’s strategic goals.
Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
A merger clause, also known as an integration clause, stipulates that the written contract represents the complete and final agreement between the parties, superseding all prior negotiations, representations, or agreements. This clause ensures that no external documents or verbal agreements can alter the contract's terms, providing clarity and preventing disputes over prior statements or understandings.
This clause explicitly states that the agreement between the parties does not create an agency relationship. Each party operates independently and does not have the authority to act on behalf of or bind the other party in any manner.
The "Notice and Opportunity to Cure" clause requires a party to inform the other party of any breaches or defects and allows a specified period for the offending party to remedy the issue before further action can be taken. This provision helps mitigate conflicts by facilitating problem resolution and allowing parties to maintain their contractual relationship.
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