EXHIBIT
10.25
EMPLOYERS MUTUAL CASUALTY
COMPANY
SENIOR EXECUTIVE LONG TERM
INCENTIVE PLAN
The Senior Executive Long Term Incentive Plan
(LTIP) is a bonus program based on long term Company results that
incorporate the criteria and results of the Senior Executive
Compensation Bonus Program on a rolling three year basis for
calculation purposes.
Purpose:
1. To provide a motivational tool in
the form of compensation to help executives focus on long term
results for specific corporate goals and objectives.
2. To maintain a competitive
advantage in terms of recruitment and retention of senior
executives.
3. To provide a mechanism that
encourages adequate notice to the Company from senior executives
regarding their retirement plans.
4. To reward superior, long term
results.
Eligibility:
All members of
the Policy Committee (with the exception of the President of EMC
National Life Company) will be eligible for the LTIP if they have
been eligible for the Senior Executive Compensation Bonus Program
for at least three years. All vice presidents of
Employers Mutual Casualty Company, not covered by a separate
program, will be eligible for the LTIP if they have been eligible
for the Senior Executive Compensation Bonus Program for the past
three years. In addition, retiring senior executives
will be eligible during the year of their retirement and the next
two years should bonuses be paid. Each LTIP bonus will
be calculated according to the terms and conditions of the Program
and using each executive’s final status as an officer and his
or her base salary for the most recent year.
General LTIP
Bonus Calculation
The LTIP uses
the results of the latest three years Senior Executive Compensation
Bonus Program calculations, except that no minimums or maximums are
applied for the annual calculations. The results from three years
of the Bonus Program are averaged and multiplied by an adjustment
factor determined by the EMCC Executive Compensation and Stock
Option Committee.
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Example:
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(Year 1) 25% + (Year
2) 35% + (Year 3) 30%
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= 30% X .50
(adjustment factor) = 15% X Base Salary
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3
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Plan
Administration
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1.
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An executive
must be in the position o
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