Exhibit 10(bt)
National Western Life Insurance Company
2008 DOMESTIC MARKETING OFFICER BONUS PROGRAM
The Bonus
Program (“Program”) is designed to reward Domestic
Marketing officers for their performance in achieving
pre-determined sales targets while assisting the Company in
managing to its profit criteria. The Plan incorporates three
measurable performance factors: (1) sales, which are defined as net
placed annualized target premium for Life business and as total
placed premium for Annuity business, (2) persistency, and (3)
expense management. The bonus percentages included in this document
pertain to Domestic Marketing officers at the vice president level
and higher. The bonus percentages for assistant vice presidents are
determined using one-half of the percentages shown for vice
presidents and above.
Each of the
three performance factors will have an assigned target level for
purposes of the Program. Assuming a “par” performance
(i.e. achieving each target level), the weighting of the bonus
(applied to base salary) is 70% for sales performance, 15% for
persistency performance, and 15% for expense management
performance. Actual results compared to the targets can either
increase or decrease these percentages as explained in each of the
following sections.
The sales
component of the Program is subdivided between Life production and
Annuity production. For 2008, the Domestic sales goals
are:
|
|
Life --
$10,500,000 net placed annualized target premium excluding
California 1 st year business and $3,000,000 net paid annualized
2nd year California target premium (14% of MaxWealth and Lifetime
Returns Select (LTRS) total single premium, 55% of LTRS 5 pay
premium and 85% of LTRS 10 pay premium is assumed to be target for
purposes of the Program)
|
|
|
Annuities --
$540,000,000 net placed total premium
|
The New
Business Market Summary Report (NWAR60) will be the source of sales
results for purposes of this Program, as well as other programs to
track 2 nd
year California premium. Based upon
these sales goals, the bonus percentage corresponding with the Life
and Annuity
sales
production levels achieved in 2008 will be applied to 100% of each
Domestic Marketing officer’s base salary in accordance with
the following grid:
National Western Life Insurance Company
2008 DOMESTIC MARKETING OFFICER BONUS PROGRAM
|
Life Placed Target
|
Bonus
|
California Life 2nd
Yr.
|
Bonus
|
|
Premium (Minus
California
|
%
|
Target Paid Premium
¹
|
%
|
|
1 st Yr Premium)
|
|
|
|
|
$8,000,000 -
<$8,500,000
|
|
$ 500,000 -
<$1,000,000
|
|
|
$8,500,000 -
<$9,000,000
|
|
$1,000,000 -
<$1,500,000
|
|
|
$9,000,000 -
<$9,500,000
|
|
$1,500,000 -
<$2,000,000
|
|
|
$9,500,000 -
<10,000,000
|
|
$2,000,000 -
<$2,500,000
|
|
|
$10,000,000 -
<$10,500,000
|
|
$2,500,000 -
<$3,000,000
|
|
|
$10,500,000 -
<$11,000,000
|
|
$3,000,000 -
<$3,500,000
|
|
|
$11,000,000 -
<$11,500,000
|
|
$3,500,000 -
<$4,000,000
|
|
|
$11,500,000 -
<$12,000,000
|
|
$4,000,000 -
<$4,500,000
|
|
|
$12,000,000 -
<$12,5000,000
|
|
$4,500,000 -
$<5,000,000
|
|
|
Increment for every $500,000 thereafter
|
|
Increment for every $500,000 thereafter
|
|
¹For the
purposes of this Bonus Program, 2 nd year target paid premium is defined as paid
premium received by NWL in 2008 on life insurance sales originally
written in California that is classified as second year
premium for the purposes of paying agent commission.
|
Annuity Placed Total
Premium
|
Bonus
|
|
|
%
|
|
$340,000,000 -
<$380,000,000
|
|
|
$380,000,000 -
<$420,000,000
|
|
|
$420,000,000 -
<$460,000,000
|
|
|
$460,000,000 -
<$500,000,000
|
|
|
$500,000,000 -
<$540,000,000
|
|
|
$540,000,000 -
<$580,000,000
|
|
|
$580,000,000 -
<$620,000,000
|
|
|
$620,000,000 -
<$660,000,000
|
|
|
$660,000,000 and
Greater
|
|
Assuming an
officer salary of $100,000 and 2008 production of $11,000,000 of
Life placed target premium (excludes California business),
$2,500,000 of Life paid 2 nd year target California premium, and $470,000,000
of Annuity placed total premium, the officer’s 2008 sales
bonus component under the Program would be $63,500 ($100,000 x 35%
for Life business plus $100,000 x 8.5%% for California business,
plus $100,000 x 20% for Annuity business).
National Western Life Insurance Company
2008 DOMESTIC MARKETING OFFICER BONUS PROGRAM
Persistency Component (15%):
Similar to the
sales component, the persistency component of the Program is
further subdivided between Life business and Annuity
business.
The 24
th month ratio of actual persistency to expected
(i.e. pricing) persistency as reported in the Duration Score
Listing query will serve as the measure for the Life persistency
compone
|
