Exhibit 10.1
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
CHAIRMAN, CHIEF EXECUTIVE OFFICER AND PRESIDENT
Effective: January 1, 2005
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
CHAIRMAN, CHIEF EXECUTIVE OFFICER AND PRESIDENT
PURPOSE: To define the compensation plan for the Chairman, Chief Executive
Officer and President.
SCOPE: Perma-Fix Environmental Services, Inc.
POLICY: The Compensation Plan is designed to retain, motivate and reward the
incumbent to support and achieve the business, operating and financial
objectives of Perma-Fix Environmental Services, Inc.
BASE SALARY: The Base Salary noted in Schedule A. is paid in equal periodic
installments per the regularly scheduled payroll.
PERFORMANCE INCENTIVE COMPENSATION: Performance Incentive Compensation is
available based on the Company's financial results noted in Schedule A. Eligible
quarterly performance incentive compensation is payable in the second pay period
of the month following each calendar year quarter and annual performance
incentive pay is payable in the second pay period of the month following the
close of the company's financial books.
SEPARATION: Upon voluntary or involuntary separation from the Company the
employee will be paid the base salary due to the last day of employment. If
employment is separated prior to a regularly scheduled quarterly or annual
incentive compensation payment period as noted above, no incentive compensation
is due to the incumbent.
ACKNOWLEDGEMENT: No Base Salary or Performance Incentive Compensation of any
type will be provided until the Human Resources Department has received a signed
acknowledgement of receipt of the Compensation Plan.
INTERPRETATIONS: The Compensation Committee of the Board of Directors retains
the right to modify, change or terminate the Compensation at any time and for
any reason. It also reserves the right to determine the final interpretation of
any provision contained in the Compensation Plan. While the plan is intended to
represent all situations and circumstances some issues may not easily be
addressed. The Compensation Committee will endeavor to review all standard and
non-standard issues related to the Compensation Plan and will provide quick
interpretations that are in the best interest of the Company, its shareholders
and the incumbent.
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
SCHEDULE A.
The compensation for the below named individual as follows:
Annualized Base Pay: $225,000
Performance Incentive Compensation Target (at 100% of Plan): $112,500
Total Annual Target Compensation (at 100% of Plan): $337,500
The Performance Incentive Compensation is defined as a cash pay program funded
from revenue and is payable only after the Company meets a minimum threshold of
85% of its budgeted EBITDA, including Performance Incentive Compensation accrual
targets during the course of the year. When the Performance Incentive
Compensation Plan is funded, the employee is eligible to receive quarterly and
annual Incentive Compensation based on the achievement of Financial objectives
noted below.
QUARTERLY INCENTIVE COMPENSATION:
Represents 40% of the Total Performance Incentive Compensation target. The total
eligible Quarterly Incentive Compensation spread over four (4) quarters for
performance at 100% of year-to-date plan is $45,000. Corporate financial and
non-financial targets are cumulative from quarter to quarter with eligible
incentive pay based on the table below.
Performance Target Thresholds
(Actual versus Plan)
-------------------------------------------------------------------
90% 101% 121% 131% 141% 151%
- - - - - - 161%
100% 120% 130% 140% 150% 160% Plus
------ ------ ------ ------ ------ ------ ------
Targets (Cumulative) Target Weight Per Quarter Incentive Pay Target
-------------------- ------------- -------------------------------------------------------------------
Revenue 15% $1,688 $2,025 $2,194 $2,363 $2,531 $2,700 $2,953
EPS 55% $6,188 $7,425 $8,044 $8,663 $9,281 $9,900 $10,828
Health & Safety 15% $1,688 $2,025 $2,194 $2,363 $2,531 $2,700 $2,953
Permit & License Violations 15% $1,688 $0 $0 $0 $0 $0 $0
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
CHAIRMAN, CHIEF EXECUTIVE OFFICER AND PRESIDENT
o Revenue is defined as the percentage of the top-line budget achieved
for existing segment services and where feasible, the identification
and generation of new revenue from non-traditional revenue sources in
the quarter.
o Health and Safety is defined as the percentage reduction of actual
Reportable Worker's Compensation Accidents for the Corporation in the
quarter versus the prior year's quarterly average of Reportable
Worker's Compensation Accidents. (See attached Addendum)
o Permit and License Violations is defined as no major Permit or License
Violations for the Corporation in the quarter.
ANNUAL INCENTIVE COMPENSATION:
Represents 60% of the Total Performance Incentive Compensation target. The
corporate annual financial targets and year-end incentive compensation at 100%
of plan is $67,500 and payable based on the table below.
Performance Target Thresholds
(Actual versus Plan)
-------------------------------------------------------------------
90% 101% 121% 131% 141% 151%
- - - - - - 161%
100% 120% 130% 140% 150% 160% Plus
------ ------ ------ ------ ------ ------ ------
Targets (Cumulative) Target Weight Per Quarter Incentive Pay Target
-------------------- ------------- -------------------------------------------------------------------
Revenue 15% $10,125 $12,150 $13,163 $14,175 $15,188 $16,200 $17,719
EPS 55% $37,125 $44,550 $48,263 $51,975 $55,688 $59,400 $64,969
Health & Safety 15% $10,125 $12,150 $13,163 $14,175 $15,188 $16,200 $17,719
Permit or License Violations 15% $10,125 $0 $0 $0 $0 $0 $0
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
CHAIRMAN, CHIEF EXECUTIVE OFFICER AND PRESIDENT
o Revenue is the percentage of the top-line budget achieved for existing
segment services and where feasible, the identification and generation
of new revenue from non-traditional revenue sources in the year.
o Health and Safety is the percentage reduction of the total actual
Reportable Worker's Compensation Accidents for the Corporation for the
year compared to the prior year's total Reportable Worker's
Compensation Accidents.
o Permit and License Violations is defined as no major Permit or License
Violations for the Corporation in the year.
ACKNOWLEDGMENT:
I acknowledge receipt of the aforementioned Chairman, Chief Executive Officer
and President 2005 - Compensation Plan. I have read and understand and accept
employment under the terms and conditions set forth therein.
- ---------------------- ----------------------
/S/ Dr. Louis Centofanti Date
- ---------------------- -----------------------
/S/ Board of Directors Date
FORWARD SIGNED FORM TO: Perma-Fix Environmental Services, Inc.
c/o Board of Directors
1940 N.W. 67th Place, Suite A
Gainesville, FL 32653