INTUIT INC. PERFORMANCE INCENTIVE
PLAN
FOR FISCAL YEAR 2010
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1.
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Overview: Intuit Inc.’s Performance
Incentive Plan (IPI) is a program under which Intuit Inc.
(“Intuit”) pays discretionary cash bonus awards to
select employees located in the United States of America. Bonus
awards under the IPI are paid annually. The amount of a bonus award
is based upon the employee’s bonus target and performance
during the fiscal year and the bonus pool made available for
payments under the IPI for the applicable fiscal year. The IPI is
intended to provide employees with “performance-based
compensation” within the meaning of Section 409A of the
Internal Revenue Code (“Code”).
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2.
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Purposes : The IPI is a component of
Intuit’s overall strategy to pay its employees for
performance. The purposes of IPI are to: (i) attract and
retain top performing employees; (ii) motivate employees by
tying compensation to Intuit’s performance; and
(iii) reward exceptional individual performance that supports
overall Intuit objectives.
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3.
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Effective Date
: The terms of this IPI
document will be applicable to bonuses for services during
Intuit’s 2010 fiscal year that begins August 1,
2009.
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4.
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Eligibility : All employees of Intuit are
eligible to participate in the IPI, except for employees who
(i) are classified as seasonal employees, (ii) are
classified as interns/project employees, (iii) participate in
Intuit’s Senior Executive Incentive Plan, unless such
employee is specifically approved by the Compensation and
Organizational Development Committee (“Compensation
Committee”) to also participate in the IPI, (iv) participate
in other Intuit incentive compensation plans that specifically
exclude an employee’s participation in the IPI, including,
but not limited to, the sales incentive compensation plans and the
contact center incentive compensation plans, (v) participate
in an incentive compensation plan sponsored by Intuit or an Intuit
subsidiary for international employees that was designed to provide
a cash incentive benefit to such employees comparable to or in lieu
of the IPI, (vi) work for Intuit on a purely commission basis,
(vii) participate in the Performance Incentive Plan for
Employees of International Subsidiaries of Intuit Inc. or
(viii) commence employment pursuant to (AA) an
acquisition which becomes effective following August 1, 2009
and (BB) an offer letter which provides for participation in
future Intuit compensation plan(s) only. Those employees who are
determined to be eligible for bonus awards under the IPI are called
“Participants.” Participants in the IPI (other than
Senior Officers, which term means the Chief Financial Officer, any
Executive Vice President or Senior Vice President, the Vice
President of Internal Audit and any other officer who is a
Section 16 officer or any other officer who reports to the
President and Chief Executive Officer) are not eligible to
simultaneously participate in any other bonus or cash incentive
plan, unless the Vice President responsible for Total Rewards
otherwise specifically approves such participation. Senior Officers
who are Participants in the IPI are not eligible to
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simultaneously participate in any
other bonus or cash incentive plan, unless the Compensation
Committee otherwise specifically approves such participation. An
employee must commence employment or otherwise become eligible to
participate in the IPI no later than April 1 to be eligible for a
bonus award under the IPI for that fiscal year. Being a Participant
does not entitle the individual to receive a bonus award. Bonus
awards are payable to Participants that meet the criteria set forth
in Paragraph 6 below.
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5.
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Plan Year : The IPI operates on a fiscal year
basis, August 1 through July 31.
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6.
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Bonus Awards : Bonus awards are discretionary
payments. A Participant must be an active employee in good standing
and on Intuit’s or an approved subsidiary’s payroll on
the day the bonus award is paid to receive any portion of the bonus
payment. A Participant who is not actively employed or on an
approved payroll for whatever reason on the date a bonus award is
paid is not entitled to a partial or pro rata bonus award. Intuit
may make exceptions in its sole discretion, provided, however, that
exceptions must be made by the Compensation Committee or its
delegate. There is no minimum award or guaranteed payment. Bonus
awards are paid based on the fiscal year. A bonus award is
calculated at the discretion of the Compensation Committee after
considering Intuit’s performance, the Participant’s
bonus target and performance for the fiscal year and the bonus pool
made available for bonus awards under the IPI for the fiscal
year.
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i.
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For
each Participant that is paid an annual salary, his or her bonus
target is established as a percentage of the Participant’s
base salary. For each Participant that is paid hourly, his or her
bonus target is established as a percentage of the
Participant’s base pay. In accordance with the Fair Labor
Standards Act, for each Participant that is paid hourly, Intuit
will either (a) add overtime earnings to base pay in the
calculation of the IPI award or (b) add the amount of the IPI
award to base pay and recalculate the Participant’s hourly
rate for overtime pay.
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ii.
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When an employee becomes a
Partic
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