EXHIBIT 10.22
Indianapolis Power & Light Company
DATE: May 31, 1995
TO: See Distribution Below AT: Various
Locations
FROM: Mr. Ramon L. Humke AT: Electric
Building
SUBJECT: 1995 MANAGEMENT INCENTIVE PROGRAM
DISTRIBUTION:
Officers Superintendents
Managers Assistant Superintendents
Directors Division Supervisors
The 1995 Management Incentive Program (MIP) is
established to provide additional incentive and
recognition to individuals who make above average
contributions to the achievement of organization
and corporate objectives.
Awards will be based on a year-end evaluation of
the Company's performance and of each
participant's performance during the year,
directly keyed to organization and department
objectives through specifically documented
Performance Management "Expectations" and
"Objectives" for that participant. The threshold
standard is:
IPL Net Income $83.6 Million
This threshold performance standard must be met
for bonus qualification.
The Senior Vice Presidents, and Vice Presidents of
Human Resources and Corporate Affairs, will ensure
that individual awards are commensurate with
performance and that the total of awards does not
exceed their organization's allocation of the
budget for this program. The Company's
compensation philosophy is to establish base
salaries at market value; therefore participant
awards under this program are for demonstrable and
measurable contributions to organization and
corporate objectives and performance. Guidelines
for individual awards, granted in $500 increments,
are as follows:
Award Range
Participant's Contribution if Threshold is met
Above Expected Up to $7,500
At Expected Up to $5,000
Below Expected 0%
The evaluator should be able to identify
demonstrable and measurable results as the
criteria for recommending an award for the
participant. Awards are not automatic and not all
participants may receive an award.
The Management Incentive Program participants for
1995 include supervisors from the division head
level to the manager level. Special requests for
inclusion in the program need to be submitted for
approval to the Vice President of Human Resources.
Documentation supporting inclusion in the program
is required. In addition, at year-end,
Organizational Heads may recommend other
associates who have specific work assignments that
significantly affect the Corporate Objectives.
If a participant retires, becomes disabled, or
dies during 1995, or if a person becomes eligible
after the year begins, any award payable to such
person shall be prorated.
Additionally, the Big Dollar Award Program for
other associates who deserve special recognition
for making an extraordinary contribution to
Corporate Objectives or organizational assignments
is being continued. A formal Big Dollar Award
Program description is attached.
/s/ R.L. Humke
RLH:dlr
Attachment
Program Name: Big Dollar Award Program
Purpose: The program exists to provide an
immediate cash reward to an
associate who makes significant
contribution which will have a
substantial positive impact on the
Company.
Eligibility: Any non-officer associate who is
not part of the Management
Incentive Program is potentially
eligible to receive a reward under
this program.
Award Basis: Associates whose recommendations,
acts, or achievements are outside
their normal work requirements
should be considered for awards.
Extraordinary contributions to
Corporate Objectives and
organization assignments are the
principal criteria for these
awards. Superior work on normal
work assignments alone does not
qualify an individual for an award.
More efficient operations, greater
productivity, better customer
service, reduced costs, higher
earnings, and enhanced public image
are examples of results which would
warrant consideration for an award.
Award Amount: The amount of the award will depend
upon the significance and long-term
benefit to the Company. As a
general rule, awards should be no
less than $200, after taxes.
Process: All associates and supervisors are
asked to identify recommendations,
acts, or achievements of other
associates which should be
considered for an award.
Descriptions of such acts should be
directed to the organization
officer who will assess the
achievement and, if warranted,
forward a recommendation through
the appropriate senior officer to
the President. Recommendations
should include suggested award
amounts. The President will
approve and present these special
awards as these extraordinary
contributions are identified and
evaluated throughout the year. The
intent is that an award follow
these acts or achievements as
closely as practical. Therefore,
recommendations for awards should
be expedited. When possible, Mr.
Humke will present the award to the
associate personally.
Administration: The Vice President, Human
Resources, will administer
this program, with the
assistance of the Controller.
All checks will represent the
award, less necessary tax
withholding. The organization
officer should contact
Corporate Communications to
arrange appropriate publicity.
1995 MANAGEMENT INCENTIVE PROGRAM
The purposes of the program are to focus attention
on key IPL performance standards, to improve
productivity and to control costs by attaining the
goals set out in the Corporate Objectives while
maintaining operating costs within or less than
those budgeted for 1995. The program cost is
estimated to be $560,000.
The Program also includes a separate fund for the
payment of bonuses to persons not within the group
identified above who deserve recognition for
extraordinary contributions to the Company. An
additional $48,500 is estimated for this separate
fund.
Bonus awards will depend upon the performance of
the participants in meeting specific objectives
and assignments. Awards are not automatic; some
participants may not receive an award. No bonus
payments will be made unless the 1995 IPL Net
Income thresholds is met.
Performance Bonus
Above Expected $500 to $7,500
At Expected $500 to $5,000
Below Expected 0
If a participant dies, retires or becomes disabled
during the Program Year, or if a person becomes
eligible to participate in the Program after the
Program Year begins, any bonus shall be prorated
based on the number of months such person was
eligible to participate in the Program.
Bonus awards will be approved by Mr. Humke and Mr.
Hodowal, based upon the recommendations of the
Senior Officers for their respective
organizational participants. Progress in meeting
objectives will be reviewed with each participant
periodically throughout the year.