EXHIBIT 10.16
THE WACKENHUT CORPORATION
DESIGNATED EXECUTIVE OFFICER BONUS PLAN
FOR FISCAL 2001
Eligibility and Eligibility in this plan is limited to the Designated Senior
Participation Executive Officers, which presently includes the following:
- Chairman of the Board and Chief Executive Officer
- President and Chief Operating Officer
Target Incentive For fiscal year 2001, the percentages defined for each
Awards participant are shown below.
<Table>
<Caption>
Target Incentive Award
Position As a Percent of Base Salary
-------- ---------------------------
COB/CEO 50%
PRES/COO 50%
Corporate
Performance Performance Measures Participants
Measures -------------------- ------------
Corporate Revenues 30%
Corporate Income
Before Tax 70%
---
Total 100%
</Table>
Definition of This definition excludes extraordinary items and changes in
Corporate accounting principles, as defined by GAAP.
Income
Extraordinary items, as defined by GAAP, include items of a
very unusual and infrequent nature, a good example of which is
a loss incurred in the early extinguishment of debt.
Changes in accounting principles as a result of new
pronouncements or requirements issued by accounting
authorities such as SEC, FASB, etc.
Non-recurring and unusual items not included or planned for in
the budgeted bonus targets may be excluded from the corporate
income before income taxes, as defined, at the recommendation
of management and at the discretion and agreement of the
Nominating and Compensation Committee.
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Award Based on performance achieved during the year, a
Determination participant's award payout will be a function of performance
against pre-established goals for each performance measure,
as shown in the following chart:
Performance Payout as Percent
Achieved of Target Incentive Award
----------- -------------------------
Outstanding 150%
Target 100%
Threshold 50%
Below threshold 0%
Threshold, Target, and Outstanding performance levels will be
defined at the beginning of each year for each performance
measure.
For 2000, the following applies:
Threshold 80% of Target
Target 100% (Budget)
Outstanding 120% of Target
Governance The Nominating and Compensation Committee of the Board of
Directors of The Wackenhut Corporation is responsible for the
administration and governance of the plan. Actions requiring
Committee approval include final determination of plan
eligibility and participation, identification of performance
goals, and final award determination. The decision of the
Committee shall be conclusive and binding on all participants.
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