1995 NEBS EXECUTIVE BONUS PLAN
(Effective as of June 25, 1994)
This Executive Bonus Plan was adopted by the Board of Directors
of New England Business Serve, Inc. (the "Company") on July 22, 1994
upon the recommendation of its Organization and Compensation Committee
for the purpose of providing incentive compensation for the senior
executives and managers of the Company and its subsidiaries. This
Plan shall be governed by the following definitions and calculations.
I. Participants. The Participants in the Plan for the 1995
fiscal year of the Company (the "Year") and their respective Target
Bonus Percentages shall be as follows:
A. Officers of the Company.
William C. Lowe,
President, Chief Executive Officer 70%
Timothy D. Althof,
Vice President, Corporate Controller 50%
Edward M. Bolesky,
Vice President - General Manager, Operations 50%
Robert S. Brown,
Vice President-General Manager, Subsidiaries 50%
Christopher H. Corbett,
Vice President, Information Systems 50%
Russell V. Corsini, Jr.,
Vice President, Chief Financial Officer 50%
Sally C. Davis,
Vice President - Manual Business Forms 50%
Thomas W. Freeze,
Vice President - Finance and Administration,
Image Products 50%
The Treasurer/Secretary (1)
B. CEOs of Subsidiaries.
Robert T. Richardson,
President and Chief Executive,
NEBS Business Forms, Ltd. 40%
Robert A. Lay, President and
Chief Executive,
SYCOM, Inc. 40%
David G. Booth, Managing Director,
NEBS Business Stationery 40%
C. General Managers of Business Units.
Michael F. Dowd,
General Manager, Manual Business Forms
and Direct Marketing 40%(2)
Linda A. Jacobs,
General Manager, Image Products 40%(3)
The General Manager,
Computer Forms and Software (4)
D. Selected Directors.
Peter J. Zarrilla,
Corporate Director - Human Resources 30%(5)
John Winzeler,
Manufacturing Director 20%
Steve Schlerf,
Image Manufacturing Director 40%
John Gamelin,
Operations Director (NCF/Software) 20%
Dave Foster,
Finance Director (NCF/Software) 20%
Karen Hartzell,
Customer Relations Director 20%
Joe Cali,
Finance Director (Manual Business Forms) 20%
Gregg Walsh,
Operations Controller 20%
<FN>
<F1> Such percentage as shall be approved by the Board of Directors upon
such officer's election.
<F2> 50% effective January 1, 1995 if promoted to Vice President as of
that date.
<F3> 50% effective January 1, 1995 if promoted to Vice President as of
that date.
<F4> Such percentage as shall be approved by the Organization and
Compensation Committee upon such General Manager's appointment.
<F5> 50% effective January 1, 1995 if promoted to Vice President as of
that date.
No Participant shall be eligible to participate in the NEBS Profit
Sharing Plan for any year in which he or she is entitled to
participate in this Plan.
II. Target Bonus. The Target Bonus payable to a Participant
with respect to the Year shall be an amount arrived at by multiplying
his or her base salary initially fixed for the Year by his or her
Target Bonus Percentage.
III. Actual Bonuses.
A. President, Chief Executive Officer and Vice President,
Chief Financial Officer.
1. The Actual Bonus of each of these Participants
shall be calculated by multiplying his Target
Bonus by a percentage which shall be 50% of the
sum of (i) a "Consolidated Sales Factor" based on
the percentage which the consolidated net sales
for the Year are of $272, 000,000 (the "targeted
consolidated net sales" for the Year), and (ii) a
"Consolidated Profit Factor" based on the
percentage which the consolidated earnings per
share for the Year are of $1.30 per share (the
"targeted consolidated earnings per share" for
the Year), as described below:
(a) Consolidated Sales Factor equals 100% plus
6.48% for each one percent by which
consolidated net sales are more than the
targeted consolidated net sales for the
Year, or 100% minus 6.48% for each one
percent by which consolidated net sales are
less than the targeted consolidated net
sales for the Year (calculated in either
case to the nearest one-tenth of one
percent), provided that the Sales Factor
shall be 0% if consolidated net sales for
the Year are less than $251,000,000.
(b) Consolidated Profit Factor equals 100% plus
6.48% for each one percent (1.3 cents) by
which consolidated earnings per share are
more than the targeted consolidated
earnings per share for the Year up to and
including $1.43 and 9.72% for each one
percent (1.3 cents) by which consolidated
earnings per share are more than $1.43, or
100% minus 6.48% for each one percent (1.3
cents) by which consolidated earnings per
share are less than $1.30 (calculated in
either case to the nearest one-tenth of one
percent), provided that the profit factor
shall be 0% if the earnings per share for
the Year are less than $1.20.
2. No bonuses shall be paid to either of these
Officers if the Company's consolidated earnings
per share for the Year are less than $1.11.
B. Chief Executives of Subsidiary Business Units.
1. Each of the Chief Executives of NEBS Business
Forms, Ltd. and SYCOM , Inc. and the Managing
Director of NEBS Business Stationery shall be
paid an actual bonus which shall be the sum of
the following products:
(a) 15% of his Target Bonus times the
Consolidated Sales Factor;
(b) 15% of his Target Bonus times the
Consolidated Profit Factor;
(c) The sum of his unit's quarterly sales
factor awards determined pursuant to
Section 2 below; and
(d) The sum of his unit's quarterly profit
factor awards determined pursuant to
Section 3.
2. The Quarterly Sales Factor Awards of the several
subsidiary business units shall reflect the
degree of attainment (up to 100%) of the
following quarterly unit sales goals:
(000,000)
Q1 Q2 Q3 Q4
NEBS Business Forms $6.0 $6.1 $6.4 $6.2
SYCOM, Inc. $3.8 $3.7 $3.9 $3.7
NEBS Business Stationery [$L]0.694 [$L]0.765 [$L]0.779 [$L]0.765
Successful attainment of each quarterly sales goal
earns the participant 8.75% of his Target Bonus..
Each 1% of performance below the quarterly sales
goal results in a 20% reduction in the quarterly
award. For quarterly performance at 95% or less
of a quarterly sales goal, the quarterly award for
this factor shall be 0.
3. The Quarterly Profit Factor Awards of the several
subsidiary business units shall reflect the
degree of attainment (up to 100%) of the
following quarterly unit profit from operations
goals:
(000,000)
Q1 Q2 Q3 Q4
NEBS Business Forms $1.0 $0.9 $1.2 $1.1
SYCOM, Inc. $0.7 $0.7 $0.7 $0.8
NEBS Business Stationery [$L](0.105) [$L](0.017) [$L](0.009) [$L](0.067)
Successful attainment of each quarterly profit
from operations goal earns the participant 8.75%
of his Target Bonus. Each 1% of performance below
the quarterly profit from operations goal results
in a 20% reduction in the quarterly award. For
quarterly performance at 95% or less of a
quarterly profit from operations goal, the
quarterly award for this factor shall be 0.
4. All performance calculations pursuant to
Sections 2 and 3 shall be made to the nearest
one-tenth of one percent. No bonus shall be paid
to any CEO of a subsidiary business unit if the
consolidated earnings per share for the Year are
less than 1.11.
C. The Officers and General Managers in Charge of the
Company's Business Units.
1. The Vice President - Manual Business Forms, the
Vice President-Finance and Administration, Image
Products, the General Manager, Manual Business
Forms and Direct Marketing, the General Manager,
Computer Forms and Software (when appointed), and
the General Manager, Image Products, shall be paid
an actual bonus which shall be the sum of the
following:
(a) 20% of his or her Target Bonus times the
Consolidated Sales Factor;
(b) 20% of his or her Target Bonus times the
Consolidated Profit Factor;
(c) the sum of his or her unit's quarterly
sales factor awards determined pursuant to
Section 2 below;
(d) the sum of his or her unit's quarterly
profit factor awards determined pursuant to
Section 3 below; and
(e) 20% of his or her Target Bonus times his or
her Additional Factor determined by the
President on the basis of the Qualitative
Measurements shown on Appendix A annexed
hereto.
2. The Quarterly Sales Factor Awards of the several
business units shall reflect the degree of
attainment (up to 100%) of the following quarterly
unit sales goals:
(000,000)
Q1 Q2 Q3 Q4
Manual Business Forms $25.7 $25.1 $28.6 $26.9
Computer Forms and Software $14.3 $18.7 $21.4 $18.8
Image Products $13.4 $19.0 $16.2 $15.3
Successful attainment of each quarterly sales goal
earns the participant 5% of his or her Target
Bonus. Each 1% of performance below a quarterly
sales goal results in a 20% reduction in the
quarterly award. For quarterly performance at 95%
or less of a quarterly sales goal, the quarterly
award for this factor shall be 0.
3. The Quarterly Profit Factor Awards of the several
business units shall reflect the degree of
attainment (up to 100%) of the following quarterly
unit profit from operations goals:
(000,000)
Q1 Q2 Q3 Q4
Manual Business Forms $9.4 $9.2 $10.3 $9.6
Computer Forms and Software $0.1 $1.1 $ 2.4 $2.7
Image Products $0.7 $3.1 $ 1.5 $1.4
Successful attainment of each quarterly profit
from operations goal earns the participant 5% of
his or her Target Bonus.. Each 1% of performance
below a quarterly profit from operations goal
results in a 20% reduction in the quarterly award.
For quarterly performance at 95% or less of a
quarterly profit from operations goal, the
quarterly award for this factor shall be 0.
4. All performance calculations pursuant to
Sections 2 and 3 shall be made to the nearest
one-tenth of one percent. No bonus shall be paid
to any of these executives if the consolidated
earnings per share for the Year are less than
$1.11.
D. Other Corporate Officers.
1. The Vice President-General Manager, Subsidiaries
shall be paid an actual bonus which shall be the
sum of the following eight products:
(a) 20% of his Target Bonus times the
Consolidated Sales Factor;
(b) 20% of his Target Bonus times the
Consolidated Profit Factor;
(c) 10% of his Target Bonus multiplied six
times, once each by six fractions of which
the denominator is 35 in each instance and
the six numerators are the percentage of
his Target Bonus earned by the Chief
Executive of each of the three Subsidiary
Business Units based upon (a) the sum of
his unit's quarterly sales awards and
(b) the sum of his unit's quarterly profit
from operations awards for the Year.
2. The Vice President, Information Systems shall be
paid an actual bonus which shall be the sum of the
following three products:
(a) 20% of his Target Bonus times the
Consolidated Sales Factor;
(b) 20% of his Target Bonus times the
Consolidated Profit Factor; and
(c) 60% of his Target Bonus times his
Additional Factor determined by the
President on the basis of the Qualitative
Measurements shown on Appendix A annexed
hereto.
3. The Vice President-General Manager, Operations
shall be paid an actual bonus which shall be the
sum of the following three products:
(a) 20% of his Target Bonus times the
Consolidated Sales Factor;
(b) 20% of his Target Bonus times the
Consolidated Profit Factor; and
(c) 60% of his Target Bonus times his
Additional Factor determined by the
President on the basis of the Qualitative
Measurements shown on Appendix A annexed
hereto.
4. The Vice President, Corporate Controller shall be
paid an actual bonus which shall be the sum of
the following three products:
(a) 35% of his Target Bonus times the
Consolidated Sales Factor;
(b) 35% of his Target Bonus times the
Consolidated Profit Factor; and
(c) 30% of his Target Bonus times his
Additional Factor determined by the
President on the basis of the Qualitative
Measurements shown on Appendix A annexed
hereto.
5. No bonus shall be paid to any of these officers
if the consolidated earnings per share for the
Year are less than 1.11.
E. Selected Directors.
1. The Corporate Director-Human Resources shall be
paid an actual bonus which shall be the sum of
the following three products:
(a) 30% of his Target Bonus times the
Consolidated Sales Factor;
(b) 30% of his Target Bonus times the
Consolidated Profit Factor; and
(c) 40% of his Target Bonus times his
Additional Factor determined by the
President on the basis of the Qualitative
Measurements shown on Appendix A annexed
hereto.
2. The Manufacturing Director shall be paid an
actual bonus which shall be the sum of the
following:
(a) 20% of his Target Bonus times the
Consolidated Sales Factor;
(b) 20% of his Target Bonus times the
Consolidated Profit Factor; and
(c) the sum of the quarterly sales factor
awards of Domestic NEBS for this director
determined pursuant Section 9 below;
(d) the sum of the quarterly profit factor
awards of Domestic NEBS for this director
determined pursuant to Section 10 below;
and
(e) 40% of his Target Bonus times his
Additional Factor determined by the Vice
President-Operations on the basis of the
Qualitative Measurements shown on
Appendix A annexed hereto.
3. The Image Manufacturing Director shall be paid an
actual bonus which shall be the sum of the
following:
(a) 20% of his Target Bonus times the
Consolidated Sales Factor;
(b) 20% of his Target Bonus times the
Consolidated Profit Factor;
(c) the sum of the Image Product Unit's
quarterly sales factor awards determined
pursuant to Section 2 of Section C above;
(d) the sum of the Image Product Unit's
quarterly profit factor awards determined
pursuant to Section 3 above of Section C
above; and
(e) 20% of his Target Bonus times his
Additional Factor determined by the General
Manager-Image Products on the basis of the
Qualitative Measurements shown on
Appendix A annexed hereto.
4. The Operations Director (NCF/Software) shall be
paid by an actual bonus which shall be the sum of
the following:
(a) 20% of his Target Bonus times the
Consolidated Sales Factor;
(b) 20% of his Target Bonus times the
Consolidated Profit Factor;
(c) the sum of the NCF/Software Unit's
quarterly sales factor awards determined
pursuant to Section 2 of Section C above;
(d) the sum of the NCF/Software Unit's
quarterly profit factor awards determined
pursuant to Section 3 of Section C above;
and
(e) 20% of his Target Bonus times his
Additional Factor determined by the General
Manager, Computer Forms and Software on the
basis of the Qualitative Measurements shown
on Appendix A annexed hereto.
5. The Finance Director (NCF/Software) shall be paid
by an actual bonus which shall be the sum of the
following:
(a) 20% of his Target Bonus times the
Consolidated Sales Factor;
(b) 20% of his Target Bonus times the
Consolidated Profit Factor;
(c) the sum of the NCF/Software Unit's
quarterly sales factor awards determined
pursuant to Section 2 of Section C above;
(d) the sum of the NCF/Software Unit's
quarterly profit factor awards determined
pursuant to Section 3 of Section C above;
and
(e) 20% of his Target Bonus times his
Additional Factor determined by the General
Manager, Computer Forms and Software on the
basis of the Qualitative Measurements shown
on Appendix A annexed hereto.
6. The Customer Relations Director shall be paid an
actual bonus which shall be the sum of the
following:
(a) 20% of her Target Bonus times the
Consolidated Sales Factor;
(b) 20% of her Target Bonus times the
Consolidated Profit Factor; and
(c) the sum of the quarterly sales factor
awards of Domestic NEBS for this director
determined pursuant Section 9 below.
(d) the sum of the quarterly profit factor
awards of Domestic NEBS for this director
determined pursuant to Section 10 below.
(e) 40% of her Target Bonus times her
Additional Factor determined by the Vice
President-General Manager, Operations on
the basis of the Qualitative Measurements
shown on Appendix A annexed hereto.
7. The Finance Director (Manual Business Forms)
shall be paid by an actual bonus which shall be
the sum of the following:
(a) 20% of his Target Bonus times the
Consolidated Sales Factor;
(b) 20% of his Target Bonus times the
Consolidated Profit Factor;
(c) the sum of the quarterly sales factor
awards of the Manual Business Forms Unit
determined pursuant to Section 2 of
Section C above;
(d) the sum of the quarterly profit factor
awards of the Manual Business Form Unit
determined pursuant to Section 3 of Section
C above;
(e) 20% of his Target Bonus times his
Additional Factor determined by the General
Manager, Manual Business Forms on the basis
of the Qualitative Measurements shown on
Appendix A annexed hereto.
8. The Operations Controller shall be paid an actual
bonus which shall be the sum of the following:
(a) 20% of his Target Bonus times the
Consolidated Sales Factor;
(b) 20% of his Target Bonus times the
Consolidated Profit Factor; and
(c) the sum of the quarterly sales factor
awards of Domestic NEBS for this director
determined pursuant to Section 9 below;
(d) the sum of the quarterly profit factor
awards of Domestic NEBS for this director
determined pursuant to Section 10 below;
(e) 20% of his Target Bonus times his
Additional Factor determined by the Vice
President-General Manager, Operations on
the basis of the Qualitative Measurements
shown on Appendix A annexed hereto.
9. The Quarterly Sales Factor Awards of Domestic
NEBS shall reflect the degree of attainment (up
to 100%) of the following quarterly sales goals:
(000,000)
Q1 Q2 Q3 Q4
53.4M 62.8M 66.2M 61.0M
Successful attainment of each quarterly sales
goal earns the Operations Director 5% and each of
the Manufacturing Director and the Customer
Relations Director 2 1/2% of his or her Target
Bonus. Each 1% of performance below the
quarterly sales goal results in a 20% reduction
in the quarterly award. For quarterly
performance at 95% or less of quarterly sales
goals, the quarterly award for this factor shall
be 0.
10. The Quarterly Profit Factor Awards of Domestic
NEBS shall reflect the degree of attainment (up
to 100%) of the following quarterly profit from
operations goals:
(000,000)
Q1 Q2 Q3 Q4
$10.2 $13.3 $14.2 $13.7
Successful attainment of each quarterly profit
from operations goal earns the Operations Director
5% and each of the Manufacturing Director and the
Customer Relations Director 2 1/2% of his or her
Target Bonus. Each 1% of performance below the
quarterly profit from operations goal results in a
20% reduction in the quarterly award. For
quarterly performance at 95% or less of quarterly
profit from operations goals, the quarterly award
for this factor shall be 0%.
11. All performance calculations pursuant to
Sections 9 and 10 shall be made to the nearest
one-tenth of one percent. No bonus shall be paid
to any of these executives if the consolidated
earnings per share for the Year are less than
$1.11.
IV. Bonus Payouts.
80% of the payout will be in the form of cash; 20% of the
payout will be in the form of NEBS Stock with a share price which is
established at the close of trading on the NASDAQ National Market on
the third business day following the issuance of the press release
disclosing the Company's financial results for the fourth quarter of
the Year. All bonus payments, including those earned by attainment of
quarterly performance goals, will be made within 60 days after the
close of the Year.
V. Certain Definitions and Other Provisions.
A. All references to "net" sales shall refer to
consolidated net sales of the Company or net sales of a subsidiary
business unit or business unit, as the case may be, as reported or
used in calculating the Company's audited consolidated earnings.
B. For purposes of calculating the Consolidated Profit
Factor, consolidated earnings per share for the Year shall be
determined by dividing the consolidated net income from continuing
operations for the Year by the weighted average number of shares of
Common Stock outstanding during the Year. Consolidated net income
from continuing operations shall mean such consolidated income, after
taxes and after provision for executive bonuses under this Plan,
determined in accordance with all of the accounting policies employed
in the preparation of the Company's audited financial statements for
the Year.
C. Actual or targeted consolidated earnings per share,
actual or targeted consolidated sales, the actual or targeted profit
from operations of any subsidiary business unit , business unit or
Domestic NEBS or the actual or targeted net sales of any subsidiary
business unit, business unit or Domestic NEBS may, at the discretion
of the Organization and Compensation Committee, be adjusted to
eliminate the effect of (a) either the acquisition or the divestiture
by the Company of any subsidiary or division during the Year, and/or
(b) the imposition during the Year by Massachusetts or any other state
or states of sales taxes on services, materials or supplies purchased
by the Company or any subsidiary of the Company the effect of which is
not allowed for in the Company's annual budget for the 1995 fiscal
year or (c) any abatement of taxes or material increase or decrease in
Federal or State corporate tax rates. It is the intention of the
Organization and Compensation Committee that any such discretionary
adjustment shall be made by it, and shall be announced to the affected
Participants, promptly after the occurrence of the motivating event,
but failure to act promptly shall not deprive the Committee of its
power to make such an adjustment at a later time.
D. "Profit from Operations" for any subsidiary business
unit or business unit of the Company or Domestic NEBS shall be
determined consistently with the process whereby its targeted profit
from operations for the Year was determined and shall not reflect any
charge for executive bonuses payable under this Plan.
E. Domestic NEBS for the purposes of this Plan means the
Company without its subsidiaries SYCOM , Inc., NEBS Business Forms,
Ltd., or NEBS Business Stationery, but including its subsidiary NEBS
Software, Inc.
F. Should a Participant die, retire, or become totally
disabled during the Year, he or she or his or her estate shall be
entitled to receive a bonus pro-rated in accordance with the
percentage of his or her annual salary earned from the beginning of
the Year up to the date of death, retirement or disability. Should a
Participant's employment by the Company or a subsidiary business unit
be terminated for any other reason, payment of any bonus hereunder for
the year in which such termination occurs is at the sole discretion of
the Organization and Compensation Committee.
G. If a Participant assumes a new position during the
Year, the Organization and Compensation Committee may make an
appropriate adjustment in his or her target bonus and/or the means of
calculating his or her actual bonus, effective from and after that
event.
H. This Plan shall be effective commencing June 25, 1994.
I. The intended operation of the foregoing formulas for
calculating actual bonuses at the consolidated Company level are shown
graphically in the exhibits annexed hereto, which are incorporated
herein by this reference.
1995 NEBS EXECUTIVE BONUS PLAN
Appendix A
POSITION FY95 QUALITATIVE MEASUREMENTS
Vice President-General Manager,
Operations NEBS Manufacturing (30% of Target Bonus)
10% Manufacturing Cost of Sales/Revenue <= 31.1%
10% Customer Complaints/Shipped Items <= 0.46%
5% Printed Orders Shipped in 3 Days or Less >= 76.5%
5% Inventory Turns in FY95 Without Increase in >= 6.84x
Stockouts
NEBS Administration (30% of Target Bonus)
10% Administration Cost/Revenue <= 11.0%
10% Customer Complaints/Booked Items <= 0.65%
5% Administration Service Performance >= 94.0%
5% Outbound Bookings >= $5.758M
Vice President, Information Systems (60% of Target Bonus)
10% Total Cost of IS & Telecommunications <= $9.7M
(Excl. PrintNet and Project 90)
10% Enterprise Wide Service Level >= 99.0%
10% Maintain Phone Line Availability and Service
Level for Administration >= 98.8%
25% Reduce FY95 Cost of Quality $0.5M
5% Delivery of PrintNet to Schedule
Vice President - Manual Business Forms (20% of Target Bonus)
10% Integration of NBF into Image Product Line
for Total Customer Offering
10% Establishment of Effective Program to Sell
NBF Products to NCF Customers, Achieving
At Least $7M/Quarter by Q4
ALL FOOTNOTE REFERENCES ON LAST PAGE OF APPENDIX.
1995 NEBS EXECUTIVE BONUS PLAN
Appendix A
Vice President - Finance and
Administration, Image Products (20% of Target Bonus)
10% Establish Administration Function to Support
Image Business Unit
10% Establish Effective Communication with
Corporate Finance
General Manager, Manual Business
Forms and Direct Marketing (20% of Target Bonus)
10% Development of Successful Direct Mail
Advertising Program for Cross-Company Use
10% Develop a Business Opportunity Around DMA
and Mail Processing
List Rental Income >= $0.5M
Mail Processing Revenue >= $0.1M
General Manager, Image Products (20% of Target Bonus)
10% Successful Establishment of New Stationery
Product Line -- At Least Rate of $3M/Quarter
by Q4 with Break-even PFO in Q4
10% Establishment of new Brochure Product
Offering -- At least Rate of $.5M /Quarter
Revenue by Q4
The General Manager,
Computer Forms and Software (20% of Target Bonus)
10% Improve Service Performance(3) to 85% or
Better and Ability to Launch Consortium
Beginning of FY96
5% Establish GST Product in Market
5% Achieve Windows Accounting Product
Release Date of January 15, 1995
Vice President, Corporate Controller (30% of Target Bonus)
15% Establishment of Meaningful Measurements
for Each Business Unit
15% Maintenance of Timely Awareness of
Business Unit Performance Along with
Management of Balanced Quarter to Quarter
Performance
1995 NEBS EXECUTIVE BONUS PLAN
Appendix A
The Treasurer/Secretary (30% of Target Bonus)
15% Establish an investor relations plan in
conjunction with the repositioning of the
Company by December 1, 1994. Then
execute the plan as approved through
year-end.
15% Develop a transfer pricing policy and
procedure for the Company that integrates
tax, legal, financial, and operating
considerations. This plan should also
address administrative and control aspects.
To be completed and implemented by
May 15, 1995.
Corporate Director -- Human Resources (40% of Target Bonus)
20% Departmental Expense < $4.0M
10% Maintain Effective Corporate Communications 1.05
and Management Programs as Measured by Survey
Overall Employee Morale Measures >= index
(NEBS as
10% Maintain Effective Awareness of Employee a place to
Issues and Interaction with Officer/Executive work)
Team
Image Manufacturing Director (50% of Target Bonus)
20% FY95 Stationery Cost of Sales <= 46.4% of
Note: This number includes both standard Net Sales
and custom stationery through direct mail.
10% Custom Cost Sales <= 47.5% of
Note: This number includes all custom Net Sales
through direct mail except custom stationery
which is included in the above.
15% By January 1, 1995, position Image Business
Unit to produce full color brochure printing
independent of our current source
(Instacolor). Per current plan, develop an
in-house prepress capability in Phoenix,
outsourcing the printing to a local printer.
5% Starburst Cost Neutral (breakeven @ PFO for
the year)
Operations Director (NCF/Software)(20% of Target Bonus)
20% NCF/Software Service Performance(3) for
FY95 >= 85.0%
Finance Director (NCF/Software) (20% of Target Bonus)
20% Set up a central system that allows for the
timely retrieval of P&L information by product
managers and directors of the business
Finance Director (Manual Business
Forms) (20% of Target Bonus)
10% Develop a Business Opportunity Around Mail >= $0.1M
Processing for FY95 (Revenue)
10% Large Account Sales for FY95 >= $1.0M
Manufacturing Director (40% of Target Bonus)
8% Manufacturing Cost of Sales/Revenue(1) for
FY95 <= 29.5%
8% Manufacturing Customer Complaints/Shipped
Items for FY95 <= 0.38%
4% Printed Orders Shipped in 3 Days or Less >= 76.5%
8% To Support the Achievement of Operations
Objectives
12% * To develop and begin implementation of a
systems plan for Manufacturing that results in
improved measurable performance.
* To optimize the team-based organization in
Manufacturing that results in lower costs,
higher quality, and improved service.
* To develop a base forms strategy for NEBS
that optimizes our backward integration effort.
* To develop a plan to improve the delivery of
late orders in the NEBS order fulfillment
system.
1995 NEBS EXECUTIVE BONUS PLAN
Appendix A
Customer Relations Director (40% of Target Bonus)
8% Administration Cost/Revenue(2) <= 6.8%
8% Administration Customer Complaints/Booked Items <= 0.65%
4% Administration Service Performance(4) >= 94.0%
8% To Support the Achievement of Operations
Objectives
12% * To develop and execute a plan to implement
Project 90 in Telemarketing and Customer
Service. The implementation plan is expected
to be completed in FY95 in Telemarketing with
Customer Service being completed in FY96.
* To achieve 2/20 objectives in Telemarketing
($285K) and Order Entry ($500K).
* To complete the Administration expansion
project in Flagstaff and develop an
Administration expansion plan that optimizes
service and reduces cost.
* To improve the effectiveness of the Customer
Service department through a reengineering
effort that will result in improved service, lower
costs, and higher quality.
Operations Controller (20% of Target Bonus)
3% Manufacturing Cost of Sales/Revenue(1) <= 11.0%
3% Administration Customer Complaints/Booked
Items <= 0.65%
3% Administration Cost/Revenue(2) <= 31.1%
3% Manufacturing Customer Complaints/Shipped
Items <= 0.46%
8% * To support the achievement of specific
operations objectives, including the
development of a base forms strategy and
achievement of domestic bad debt objectives
* To support the achievement of remaining
2/20 Operations objectives
1995 NEBS EXECUTIVE BONUS PLAN
Appendix A
FOOTNOTE REFERENCES
<FN>
<F1> Revenue = Domestic NEBS Net Sales excluding orders shipped from
Peterborough (i.e., all Custom and Standard products produced in
Peterborough).
<F2> Revenue = Domestic NEBS Net Sales excluding DFS and Custom products.
<F3> Service Performance = Percentage of incoming customer calls handled
by the Technical Support Group in the Computer Forms and Software
business unit (Nashua).
<F4> Service Performance = Percentage of incoming customer calls handled
by all departments (consolidated) reporting to Customer Relations
Director.