Synergy-Based Incentive Plan

  • Executives have a synergy-based incentive target on top of the current annual incentive plan (AIP)
  • Department heads will have the ability to allocate discretionary pools to other employees
  • Eligibility: Management plus other employees involved in workstreams
  • Synergy goals are set as an add-on to the current AIP
  • The synergy plan target would be prorated. If paid at six months, then 37.5% of base salary would be paid. If paid at 18 months, 112.5% of base salary would be paid.
  • Management would be allocated pools to distribute on a discretionary basis to those employees facilitating the achievement of synergy goals
  • Regular AIP payments in Year 2 would only be made if synergy goals are achieved

Slide titles:

Typical MMA Synergy Based Incentive Plan

Synergy-Based Incentive Plan

Incentive Plan Funding

Incentive Plan Design

Advantages of Plan