EXHIBIT 10.3
                         BARRETT BUSINESS SERVICES, INC.

                     SUMMARY OF ANNUAL CASH INCENTIVE BONUS

                      AWARD PROGRAM FOR EXECUTIVE OFFICERS



            The  executive   officer   compensation   policy   approved  by  the
Compensation  Committee of Barrett Business Services,  Inc. (the "Company"),  in
November 1995  establishes  three components of  compensation:  (1) salary,  (2)
annual cash incentive bonus,  and (3) incentive stock options.  The Compensation
Committee  approved a formula for  calculating  annual cash  incentive  bonuses,
based on the  Company's  annual Return on Equity  ("ROE").  ROE is calculated by
dividing the Company's current year's net income (before taking into account the
provision for executive  officer  bonuses) by the Company's total  shareholders'
equity as of December 31 of the preceding year. In February of each year,  after
the Company's financial results for the prior year have been finalized,  bonuses
are  determined by multiplying  the amount of each officer's  salary paid during
the preceding year by the Company's ROE. The Company's  Compensation  Committee,
in its discretion, may approve the payment of additional bonus amounts in excess
of the amounts calculated under the pre-approved ROE formula.