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.
