Exhibit 10.3
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
PRESIDENT - NUCLEAR
Effective: January 1, 2005
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
PRESIDENT - NUCLEAR
PURPOSE: To define the compensation plan for the President - Nuclear Segment.
SCOPE: Perma-Fix Environmental Services, Inc.
POLICY: The President - Nuclear Segment Compensation Plan is designed to retain,
motivate and reward the incumbent to support and achieve the business, operating
and financial objectives of the Nuclear business unit and 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 Nuclear Segment's Financial and Non-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 Plan 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: $185,000
Performance Incentive Compensation Target (at 100% of Plan): $ 50,000
Total Annual Target Compensation (at 100% of Plan): $235,000
The Performance Incentive Compensation is defined as a cash pay program funded
from revenue and is payable only after the Nuclear Segment 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 the
Nuclear Segment's Financial and Non-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 $20,000. The Nuclear Segment's
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% $750 $900 $975 $1,050 $1,125 $1,200 $1,313
Operating Profit 55% $2,750 $3,300 $3,575 $3,850 $4,125 $4,400 $4,813
Health & Safety 15% $750 $900 $975 $1,050 $1,125 $1,200 $1,313
Permit and License Violations 15% $750 $0 $0 $0 $0 $0 $0
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
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 quarter.
o Health and Safety is the percentage reduction of actual Reportable
Worker's Compensation Accidents for the Nuclear Segment in the quarter
versus the prior year's quarterly average of Reportable Worker's
Compensation Accidents.
o Permit and License Violations is defined as no major Permit or License
Violations for the Nuclear Segment in the quarter.
ANNUAL INCENTIVE COMPENSATION:
Represents 60% of the Total Performance Incentive Compensation target. The
Nuclear Segment's annual Financial targets and year-end incentive compensation
at 100% of plan is $30,000 payable based on the schedule 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% $4,500 $5,400 $5,850 $6,300 $6,750 $7,200 $7,875
Operating Profit 55% $16,500 $19,800 $21,450 $23,100 $24,750 $26,400 $28,875
Health & Safety 15% $4,500 $5,400 $5,850 $6,300 $6,750 $7,200 $7,875
Permit and License Violations 15% $4,500 $0 $0 $0 $0 $0 $0
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
2005 - Compensation Plan
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 Nuclear Segment 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 Nuclear Segment in the year.
ACKNOWLEDGMENT:
I acknowledge receipt of the aforementioned President - Nuclear 2005 -
Compensation Plan. I have read and understand and accept employment under the
terms and conditions set forth therein.
- ---------------------- ----------------------
/S/ Larry McNamara Date
- ---------------------- -----------------------
/S/ Dr. Louis Centofanti Date
FORWARD SIGNED FORM TO: Perma-Fix Environmental Services, Inc.
c/o Dr. Louis Centofanti
1940 N.W. 67th Place, Suite A
Gainesville, FL 32653