EXHIBIT 10.17 PHOENIX INVESTMENT PARTNERS, LTD. 2002 MANAGEMENT INCENTIVE PLAN CORPORATEExhibit 10.17 PHOENIX INVESTMENT PARTNERS, LTD. 2002 MANAGEMENT INCENTIVE PLAN CORPORATE Exhibit 10.17 2002 Management Incentive Plan PURPOSE Phoenix Investment Partners' 2002 Management Incentive Plan provides an opportunity for Company officers to enhance their compensation if Phoenix Investment Partners meets or exceeds its plan objectives. PLAN SUMMARY • Company incentive pool based on earnings • Line of business and Corporate performance matrix • Individual award PLAN COMPONENTS • Company Incentive Pool - A Company incentive pool will be determined based on PXP cash operating earnings. At target, the pool will be funded in an amount equal to the sum of the target incentives for all participants in the Management Incentive Plan and the Investment Incentive Plan. This pool will increase or decrease by 35% of any change in cash operating earnings. • Pool Allocation - Once Company financial results are determined, the Company pool will be allocated in proportion to the sum of the target incentives for all participants in the Management Incentive Plan and the Investment Incentive Plan. Allocation to the three lines of business (Retail, Institutional, AFP) and Corporate within MIP will be based on relative success determined by using the performance matrices. (See Exhibit A for pool allocation example) • Performance Matrix - Performance matrices are established for Retail, Institutional and Corporate. These performance matrices are designed to help us focus on meeting or exceeding plan. (See Exhibit B for your Performance Matrix) • Incentive Payment Calculation - Subject to the size of the funded pool, participants will receive up to 200% of their target incentive, with 75% of the total incentive award based on the performance matrix and 25% based on management discretion. (See Exhibit C for calculation example) 2 Exhibit 10.17 INCENTIVE TARGET Annually, target incentive awards are established for each participant. Your target incentive award for 2002 is $. Your actual incentive award can range from a minimum of $0 to a maximum of $. ELIGIBILITY Eligibility is limited to all officers who do not participate in the Investment Incentive Plan or sales related plans. Participants who leave the company during the plan year will not receive an incentive payment. In addition, participants must be employed by the company on the day the bonus is paid. In the event of a termination during the plan year due to disability, death, or retirement, a pro-rata payment will be made. Employees who are promoted to officer after the beginning of the plan year will be eligible for a pro-rata award based on the number of months as a plan participant. New employees hired as officers will receive a pro-rata award. Any employees who become eligible for participation after the end of the third quarter will not be eligible for an award in that year. Officers transferring from Phoenix Home Life will not be prorated and will receive full year payout. PROCESS FOR DETERMINING INCENTIVE PLAN AWARDS Following the close of the plan year, overall results will be determined. Recommendations for individual awards will be submitted by the LOB heads to the Chief Executive Officer. The Chief Executive Officer may at his discretion, modify awards based on individual contribution. Regardless of eligibility criteria stated above, employees have no right or entitlement to any incentive award or calculation until conditions stated in the plan are met, approvals are received and payments are made. The Company may amend or terminate this plan at any time without advance notice. No consent of any employee is required to terminate, modify or change this plan. Incentives will be paid subject to normal withholdings and plan deferrals as soon as is practical after approval by the Chief Executive Officer. All incentive plan awards are paid at the discretion of the Company. IMPACT ON BENEFITS Incentive payments made under the plan will not be used to determine pay-related benefits under the qualified or non-qualified benefit plans maintained by the Company. 3 Exhibit 10.17 Exhibit A Incentive Pool Allocation Cash Operating Earnings / \ / \ MIP IIP / \ / \ LOB & Teams Corporate / \ / \ Individual Individual 4 Exhibit 10.17 Exhibit B 2002 Corporate MIP Performance Matrix Non-Discretionary Portion -------------------------------------------------------------------------------- 115% 90% 100% 115% 140% 160% 180% 200% 200% 200% -------------------------------------------------------------------------------- 110% 80% 90% 100% 115% 140% 160% 200% 200% 200% -------------------------------------------------------------------------------- 105% 70% 80% 90% 100% 115% 140% 175% 200% 200% -------------------------------------------------------------------------------- Revenue* 100% 55% 65% 75% 85% 100% 125% 150% 175% 200% -------------------------------------------------------------------------------- 96% 40% 50% 60% 75% 85% 115% 140% 165% 190% -------------------------------------------------------------------------------- 92% 30% 40% 50% 60% 75% 100% 125% 150% 175% -------------------------------------------------------------------------------- 88% 20% 30% 40% 50% 65% 90% 115% 140% 165% -------------------------------------------------------------------------------- (% of Plan) 85% 90% 95% 100% 104% 112% 120% 128% 136% Cash Operating Earnings ** * Operating revenue including management fees, ancillary fees and other operating income fees ** Pre-tax income before MIP, IIP, amortization of intangibles and net interest expense Exhibit 10.17 Exhibit C Management Incentive Plan Corporate Calculation Example at Target Participant Assumptions Bonus target - $12,000 Performance Component - 75% Discretionary Component - 25% Performance Matrix Portion - $12,000 x 75% = $9,000 Discretionary Portion - $12,000 x 25% = $3,000 Performance Matrix Revenue - 100% of target Cash Operating Earnings - 100% of target (Based on Performance Matrix in Exhibit B the payout for the non-discretionary portion is 100%) Management Discretion 100% of target Company Cash Operating Earnings Pool 100% of target incentive pool available Calculation Performance Matrix Portion x Matrix Result = Payout $9,000 x 100% = $9,000 Discretionary Portion x Management Discretion = Payout $3,000 x 100% = $3,000 ------ Sub Total = $12,000 Available pool based on company pool = $12,000 Incentive plan payout = $12,000
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10-K Filing
Phoenix Companies (PNX) Inactive 10-K2002 FY Annual report
Filed: 21 Mar 03, 12:00am