EXHIBIT 10.1
MOVADO GROUP,
INC.
EXECUTIVE
PERFORMANCE SHARE PROGRAM
Performance
Period
Fiscal
2010
Introduction
The Movado
Group, Inc. Executive Performance Share Program (EPSP) is a
performance share program that has been established by the
Compensation Committee of the Board of Directors of Movado Group,
Inc. (the “Committee”) pursuant to Section 9 of the
Movado Group, Inc. 1996 Stock Incentive Plan (as amended and
restated, the “Plan”).
Capitalized
terms that are not defined below have the meaning given to them in
the Plan. Performance Share Units are equivalent, 1 for
1, to shares of Stock that vest based on the Company’s
achievement of the specified Performance Goal and the continued
service of the Plan Participant.
Objectives :
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Links
compensation to the achievement of corporate goals
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Recognizes
competitive practices in executive compensation
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Focuses key
employees on the improvement of the Company’s operating
profit
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Provides
greater equity awards for achieving and exceeding goals
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Assists with
the attraction and retention of key management personnel
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Type of
Award
Your Award is
in the form of Performance Share Units as described under Section 9
of the Plan.
Performance
Goal
The Performance
Goal that will determine the number of shares of Stock, if any, you
receive is the Company’s operating profit for the
Award Period. Operating profit is defined as earnings
before interest and taxes, determined in accordance with GAAP as
consistently applied by the Company. In addition to
meeting the operating profit goal, cash flow from operations must
be positive for the Award Period.
Award
Period
The Award
Period, which is the period of time within which performance is
measured to determine whether an Award of Performance Share Units
has been earned, is one year ending January 31, 2010.
Size of
Individual Awards
Your target
Award is expressed as a number of Performance Share
Units. The actual number of shares of Stock earned is
based on actual performance at the end of the Award Period relative
to the Performance Goal and can range from 0% to 120% of the target
Award depending on the achievement of the operating profit
goal.
Performance
Standards
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The number of
shares of Stock earned is determined using the following payout
schedule for the Award Period ending January 31, 2010
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Payouts between
performance levels will be based on straight line
interpolation
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Fiscal 2010
Performance:
Degree of
Performance Operating %
of Shares
Attainment Profit
FY
10 Earned
(% of Target
Goal)
Maximum
(120%) $23.8
million 120%
Target
(100%) $19.8
million 100%
Below
Target
0%
*Cash flow from
operations must be positive
Earn Out and
Vesting
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After the Award
Period ends (January 31, 2010), if the Perfo
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