Exhibit 10.2
Royal Caribbean Cruises Ltd.
(RCL)
Executive Short-Term Bonus
Plan
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1.
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PURPOSE. . . . . . . . . . . .
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2.
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ELIGIBILITY . . . . . . . . .
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3.
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PLAN OUTLINE . . . . . . . . .
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Participant
Bonus Target . . . . . . . . . . . . . . . . . . . . . . . . . . .
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1
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Bonus
Award Components . . . . . . . . . . . . . . . . . . . . . . . . .
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Performance Levels . . . . . . . . . . . . . . . . . . . . . . . .
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2
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Performance Measurement . . . . . . . . . . . . . . . . . . . . . .
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3
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4.
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BONUS AWARD PAYMENTS . . . . .
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3
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5.
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PLAN ADMINISTRATION AND
GENERAL PROVISIONS . . . . . . . . . .
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3
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Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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4
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6.
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DEFINITIONS . . . . . . . . .
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4
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7.
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EFFECTIVE DATE . . . . . . . .
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5
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1.
PURPOSE
The Plan is designed to promote the
interests of the Company and its shareholders by enabling the
Company to:
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(a)
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Attract, retain, and motivate
talented leaders;
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(b)
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Link pay directly to the achievement
of the Company’s short-term, business, financial, and
strategic goals;
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(c)
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Focus leaders on their contribution
to annual results enabling them to better manage the cyclical
nature of our business; and,
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(d)
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Reward leaders for the generation of
net income and positive cash flow.
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2.
ELIGIBILITY
Full-time employees at the Vice
President level and above are eligible to participate in this Plan.
The Participant must have at least one year of service with the
Company, one of its subsidiaries, affiliates or joint ventures.
Participants with less than one year of service may receive a
pro-rated Bonus Award.
3.
PLAN
OUTLINE
The Plan is designed to promote
short-term outstanding performance among its Participants and
reward the achievement of pre-established goals.
Participant
Bonus Target
Participants in the Plan have a
Bonus Target expressed as a percentage of their annual base salary.
The Bonus Target percentage assigned to each position will depend
on the scope of responsibility, market comparison and level of
position within the organizational structure. Management and/or the
Compensation Committee, when appropriate, will determine the Target
Bonus percentage of the Participants. In special circumstances the
Bonus Target may be expressed as a fixed amount of cash.
Bonus
Award Components
The Bonus Award may be tied to
various Performance Components, each one with a specific relevance
or Weight according to each Participant’s role and level with
the Company. The following is a list of components that may be
taken into consideration when determining the award:
Corporate
Performance : The Weight assigned to this component of the
Bonus Award is determined by Management, and/or the Compensation
Committee, when appropriate. The Corporate Performance Component is
measured by a financial metric, predetermined by the Compensation
Committee, which represents a relevant measure for overall Company
performance.
Brand Performance
: The Weight
assigned to this component of the Bonus Award is determined by
Management, and/or the Compensation Committee, when appropriate.
The Brand Performance Component is measured by a financial metric,
which is relevant in a specific Plan Year based on the
Brand’s business or operating plan.
Individual Performance
: The Weight
assigned to the Individual Performance Component will be determined
by Management, and/or the Compensation Committee, when appropriate,
and will measure predetermined individual and/or departmental
goals.
The targets of the above Performance Components
are established at the beginning of the Plan Year, and communicated
accordingly. In all cases, the sum of the components’
assigned weights should equal 100% of the Bonus Target
level.
At the end of the Plan Year, the Company, Brand
and Individual results will be assessed, and bonus amounts will be
calculated based on results achieved for each Performance
Component.
The Compensation Committee will establish
individual goals for the Company’s Chairman and Chief
Executive Officer (CEO). As appropriate, the Chairman and CEO will
approve the objectives of the senior management team (Senior Vice
Presidents and Above) and make recommendations to the Compensation
Committee regarding their individual performance.
Performance
Levels
The Plan performance levels range from 0%
– 300% for Corporate and Brand Performance and 0% –
200% for Individual Performance. The Bonus Targetis the bonus
amount the Participant may earn if all Performance Components are
met as planned. An achievement of all Bonus Components at 100% or
at Plan would result in achieving the Target Award. However, the
Plan recognizes different levels of achievement, with different
payout levels, as identified below:
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Minimum Performance
: Each
Component has a minimum acceptable level of Pe
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