Exhibit 10.10
2009 Variable Compensation
(Executive Bonus) and Base
Program for CSP Inc. Executive
Management
The 2009 Variable Compensation and
Base Pay programs provide the opportunity for incentive earnings
for Vice Presidents and General Managers based on how well they and
the company perform.
The Variable Compensation Program
places emphasis on company performance and is focused on the
business realities of the coming year. If CSPI does well, Vice
Presidents and General Managers will too.
The Base Pay Program for Vice
Presidents and General Managers contains a merit budget which
places a premium on personal performance. Both programs are
designed to encourage Vice Presidents and General Managers to
provide the leadership and direction necessary to achieve the
company’s business goals.
These programs have three important
goals:
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3.
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position the
company to capitalize on the progress it makes this
year.
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Competitive
Compensation
The programs deliver a level of pay
that is fully comparable to what other people in similar positions
in different companies receive. The company knows that its pay
levels must be competitive to attract and retain the talent we need
to succeed as a company. We need highly-trained and uniquely
skilled people to make decisions and provide the leadership that
will help us achieve our business goals.
The review of the pay practices of
our peer companies shows that Vice President and General Manager
level positions contain a merit pay component as well as variable
compensation. Personal performance measured against individual
goals will determine each Vice President and General
Managers’ merit increase.
Variable
Compensation
The Variable Compensation target
incentive for Vice Presidents and General Managers is 10-30% of
base pay. Each Vice President and General Manager will have their
entire Variable Compensation
