2009 Fiscal Year
Executive Officer Bonus Plan
The purpose of the Bancinsurance Corporation (the
“Company”) 2009 Fiscal Year Executive Officer Bonus
Plan (the “Plan”) is to attract, retain and motivate
high quality executives and reward executives for Company
profitability. Under the Plan, each executive officer is eligible
to receive a cash bonus equal to a specified percentage of his base
salary based upon the achievement of pre-established Company and
individual performance goals (with each component being weighted
differently based on the executive officer’s position with
the Company). For fiscal year 2009, the target bonus and the
weighting of the Company goal and individual goal components for
each executive officer are as follows:
John S. Sokol, Chairman, Chief Executive Officer and
President
Target Bonus as a % of Base Salary: 60%
Company Goal/Individual Goal Weighted Component: 100%/0%
Matthew C. Nolan, Vice President, Chief Financial Officer,
Treasurer and Secretary
Target Bonus as a % of Base Salary: 25%
Company Goal/Individual Goal Weighted Component: 100%/0%
Daniel J. Stephan, President of OIC Lender Services, a division
of Ohio
Indemnity Company
Target Bonus as a % of Base Salary: 50%
Company Goal/Individual Goal Weighted Component: 50%/50%
Stephen J. Toth, Vice President of Specialty Products of Ohio
Indemnity Company
Target Bonus as a % of Base Salary: 25%
Company Goal/Individual Goal Weighted Component: 50%/50%
Margaret A. Noreen, Vice President of Technology
Target Bonus as a % of Base Salary: 25%
Company Goal/Individual Goal Weighted Component: 50%/50%
Company Performance Goal Component
For fiscal year 2009, the Compensation Committee has established
a 10% return on beginning equity (“ROE”) as the target
Company performance goal. Under the Plan, ROE is calculated by
dividing (1) the Company’s net income for fiscal year
2009 (excluding (1) the after-tax effect of expenses incurred
for fiscal year 2009 relating to the Company’s ongoing SEC
investigation and (2) the after-tax effect of any net realized
gains (losses) on investments during fiscal year 2009) by (2)
total shareholders’ equity at the beginning of fiscal year
2009.
The minimum and maximum Company performance goals for fiscal
year 2009 were set by the Compensation Committee at a 5% ROE and a
15% ROE, respectively. Under the Plan:
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if ROE for fiscal year 20
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