EXHIBIT 10.19 PHOENIX INVESTMENT PARTNERS, LTD. 2002 INVESTMENT INCENTIVE PLAN DPIM FIXED INCOME «NAME»Exhibit 10.19 PHOENIX INVESTMENT PARTNERS, LTD. 2002 INVESTMENT INCENTIVE PLAN DPIM FIXED INCOME «NAME» Exhibit 10.19 2002 Investment Incentive Plan PURPOSE Phoenix Investment Partners' 2002 Investment Incentive Plan provides an opportunity for Investment Plan participants to significantly enhance their compensation if Phoenix Investment Partners achieves its plan and their investment team meets expectations. PLAN SUMMARY • Company incentive pool based on earnings • Investment team pool based on team performance • Individual awards 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 individual investment plans will be based on relative success of each investment incentive plan. (See Exhibit A for pool allocation example) • Investment Team Objectives - At the beginning of each year, expectations are set for each team, which emphasize specific peer group or index measures. (See Exhibit B for your performance expectations) • Incentive Calculation - The total incentive award is calculated in the following steps: 1. Company pool created based on adjusted cash operating earnings and allocated between MIP and IIP 2. IIP pool allocated to all investment teams based on their performance relative to benchmarks and peer groups 3. 70% of the award is based on team performance and 30% is based on discretion (See Exhibit C for calculation example) Exhibit 10.19 • Discretionary Award - In determining the discretionary award consideration will be given, but not limited to, New Revenue Generation, Investment Performance, Sales Effort, Product Development and Expense Control. Consideration may also be given to rankings in other related peer groups and indexes. INCENTIVE TARGET Annually, target incentive awards are established for each participant. Your target incentive award for 2002 is $«TARGET». Your actual incentive award can range from a minimum of $0 to a maximum of $«MAX». ELIGIBILITY Your eligibility for this plan is based on your role in substantially influencing the achievement of Company and investment results. If your employment is terminated for any reason (voluntary or involuntary) other than death, disability or retirement you will not receive a bonus payment. In the event of termination during the plan year due to death, disability, or retirement, a pro-rata payment will be made. Employees who become eligible for participation in the plan during the plan year will be eligible for a pro-rata award based on the number of months as a plan participant. You must be actively employed by the Company on the day the award is paid. The Plan does not provide for any pro-rata distribution except as outlined above. PROCESS FOR DETERMINING INCENTIVE PLAN AWARDS Following the close of the plan year, investment results and business growth will be determined. Recommendations for individual awards will be based on overall investment results, on your contribution to achieving those results, and on business growth. These recommendations will be submitted to the Chief Executive Officer. The Chief Executive Officer may at his discretion, modify awards based on individual contribution or overall investment and Company results. 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. Exhibit 10.19 Exhibit A Incentive Pool Allocation Cash Operating Earnings / \ / \ MIP IIP / \ / \ LOB & Teams Corporate / \ / \ Individual Individual Exhibit 10.19 DPIM Fixed Income Plan The components of the Plan are as follows: Components Weighting Performance vs. Mercer Core Investment Grade Universe 35% Performance vs. Lehman Aggregate 35% Discretion 30% --- Total 100% Exhibit 10.19 Exhibit B DPIM Fixed Income Performance Expectations Target Peer Ranking Top 40% measured over a one-year period and top 34% measured over a three-year period. For 2002 this will be measured on a one-year basis. For 2003 this will be measured over a one- and two-year basis. For 2004 and thereafter this will be measured over a one- and three-year basis. Target Performance vs. Index 35 bp above Lehman Aggregate over one-year and three-year periods. For 2002 this will be measured on a one-year basis. For 2003 this will be measured over a one- and two-year basis. For 2004 and thereafter this will be measured over a one- and three-year basis. Refer to attached. Exhibit 10.19 Investment Incentive Plan Team Award Scale Percent of Maximum Peer Group Ranking One Year Period Three Year Period 20% 100% 22% 92% 24% 85% 26% 78% 28% 71% 30% 100% 64% 32% 90% 57% 34% 80% 50% 36% 70% 44% 38% 60% 38% 40% 50% 31% 42% 40% 25% 44% 30% 19% 46% 20% 12% 48% 10% 6% 50% 0% 0% Target peer ranking One year - 40% Three year - 34% Exhibit 10.19 DPIM Fixed Income Lehman Index Measurement The following table shows the bonus amount paid as a percentage of maximum for one and three year performance relative to the Lehman Aggregate Bond Index: Basis Points Above Index Percent of Maximum 10 0 11 2 12 4 13 6 14 8 15 10 16 12 17 14 18 16 19 18 20 20 21 22 22 24 23 26 24 28 25 30 26 32 27 34 28 36 29 38 30 40 31 42 32 44 33 46 34 48 35 50 36 52 37 54 38 56 39 58 40 60 41 62 42 64 43 66 44 68 Exhibit 10.19 Basis Points Above Index Percent of Maximum 45 70 46 72 47 74 48 76 49 78 50 80 51 82 52 84 53 86 54 88 55 90 56 92 57 94 58 96 59 98 60 100 Exhibit 10.19 Exhibit C DPIM Fixed Income Incentive Plan Calculation Example Example Company Assumptions Actual Company pool is 80% of plan Example Participant Assumptions Bonus Target - $50,000 Bonus Maximum - $100,000 Example Team Performance Assumptions % of Peer Lehman Fund performance relative to benchmarks Group Basis Points Above Index ------------ --------------- One year period 40% 39 bps Three year period 34% 43 bps Maximum Incentive Award Weight Max Incentive ------------ --------------- Team performance 70% $70,000 Management discretion 30% $30,000 --- ------- Total 100% $100,000 Calculation Example % of Max Example Team Performance Weight Max Incentive Payout Payout ------------ --------------- ----------- ------------ Peer group one year performance 17.5% $17,500 50%* $8,750 Peer group three year performance 17.5% $17,500 50%* $8,750 Benchmark one-year performance 17.5% $17,500 58%* $10,150 Benchmark three-year performance 17.5% $17,500 66%* $11,550 ----- ------- ---- ------- Team Total 70% $70,000 $39,200 Management Discretion 30% $30,000 60%** $18,000 Sub Total $57,200 In this example the final payout is subject to adjustment depending on the size of the company earnings pool and the performance of this team relative to all the other IIP teams. * Values derived from the Team Award Scales and the Lehman Index Measurement based on example performance. ** Based on subjective evaluation of individual's contribution.
- PNX Dashboard
- Filings
- ETFs
- Insider
- Institutional
-
10-K Filing
Phoenix Companies (PNX) Inactive 10-K2002 FY Annual report
Filed: 21 Mar 03, 12:00am