THE MAJESTIC STAR CASINO,
LLC
AMENDED AND RESTATED MANAGEMENT
INCENTIVE PLAN
Purpose and
Overview:
The Management
Incentive Plan is the discretionary portion of the compensation
package offered to key executives by The Majestic Star Casino,
LLC. As a key member of the management team for The
Majestic Star Casino, LLC, you play an important role in the
Company’s ability to achieve its goals, most
notably: 1) developing and maintaining quality and depth
at all levels of our management team; 2) attaining the top position
in the markets we serve; and, 3) maintaining a high level of guest
service.
The Management
Incentive Program is designed to:
q
Encourage
and reward the attainment of performance results, which extend
beyond your essential job responsibilities;
q
Encourage
fiscal responsibility and reward achievement of the Company’s
realistic and attainable fiscal year profit and revenue
objectives;
q
Maintain
the Company’s commitment to quality guest service;
q
Retain
and recruit talented and forward-thinking key managers who are
essential to the continued growth and success of the Company;
and
q
Establish
individual non-financial performance objectives, which are
developed by the Plan Participants and their managers, with a
year-end evaluation designed to measure the individual
accomplishments.
What is the
Intent of the Plan?
Provide
executives with a competitive annual incentive that is tied to
their position and base compensation.
Recognize and
reward executives on the overall financial success of the
Company.
Incentivize
executives to achieve a higher individual performance level in
critical business areas which are not necessarily measured by
financial performance, such as succession planning and development
of staff.
Incentive
Plan Highlights :
The Management
Incentive Plan is built on “success.” The
greater the success of the Company, the greater the
reward.
At the
beginning of each year, each property will set an aggressive but
attainable financial target, which is the budgeted EBITDA
(including the estimate for the bonus).
Also, at the
beginning of each year, plan participants will establish, with
their managers, their non-financial individual performance goals,
which will be reviewed at the end of each year in order to evaluate
the level of success as it pertains to their individual performance
accomplishments.
Bonuses for
eligible Corporate Executives will be granted in conjunction with
each property’s financial goals, which are weighed against
the combined individual property’s EBITDA performance to
budget; it will also include the accomplishments achieved with
their individual non-financial performance goals.
Bonuses for
eligible Property Executives will be granted in conjunction with
their own property’s financial goals, which are weighed
against their property’s EBITDA performance to budget; it
will also include the accomplishments achieved with their
individual non-financial performance goals.
Bonus
Calculation
An
employee’s bonus is calculated as follows:
Target %
increase
or actual
base Bonus
Bonus
X decrease
in
X
compensation
= Amount
Award Financial
and earned
during plan
%
Individual
Bonus year
Awards
Target Bonus
Award
The target
bonus awards are a specific percentage of your base salary
actually
