THE

WCI COMMUNITIES, INC.
(WCI)

MANAGEMENT INCENTIVE
COMPENSATION PLAN
(MICP)

 

 

January 1, 2002

 


 

WCI Communities, Inc.
Management Incentive Compensation Plan
Page 2

I.

 

OBJECTIVE

 

 

 

 

 

The WCI Communities, Inc., (“WCI” or “Company”) Management Incentive Compensation Plan (the “MICP” or “Plan”) was established to reward the performance of those key employees whose efforts significantly impact WCI’s achievement of its annual financial goals. The Plan will place emphasis on differentiating performance among our diverse businesses while maintaining a consistent reward theory and a common focus on achieving our financial and non-financial objectives. This Plan is also designed to provide significant financial rewards to participants when such objectives are met or exceeded, (a “Bonus”). However, through a “pay-for-performance” structure, the Plan will generate reduced or no incentive payment when objectives or financial goals are not met.

 

 

 

II.

 

PARTICIPATION

 

 

 

 

 

A Plan participant must be a) an officer of WCI or b) an employee whose position has been identified as having significant value towards WCI achieving its financial goals (a “Participant”).

 

 

 

 

 

Newly hired employees will not be eligible for participation in the Plan until they have completed at least eighteen (18) months of employment. Employees with less than eighteen (18) months of service may become a Participant provided they meet all of the following criteria:

 

 

(i)

 

They meet either a) or b) above, and

 

 

 

 

 

(ii)

 

Have been employed for at least six (6) months prior to payment, and

 

 

 

 

 

(iii)

 

Their participation in the Plan had been approved in advance by the Chief Executive Officer of the Company. Such approval would generally be received at the time of negotiating employment terms with the employee.

 

III.

 

VESTING

 

 

 

 

 

Termination of employment prior to a payment date will result in the loss of the entire Bonus award. Discretionary bonuses and pro-rated bonuses may be given with the approval of the Chief Executive Officer.

 

 

 

IV.

 

BONUS AMOUNTS AS A PERCENT OF SALARY

 

 

 

 

 

A Participant’s potential maximum Bonus amount, (as a percent of base salary), will be established within the following ranges:

 


 

WCI Communities, Inc.
Management Incentive Compensation Plan
Page 3

 

 

 

 

 

% of Salary

 

 


President/Chief Operating Officer

 

Up to 200%

 

 

 

 

 

 

 

 

 

 

 

 

Senior Vice Presidents/Division Presidents

 

40% – 100%

 

 

 

 

 

 

 

 

 

 

 

 

Vice Presidents/Directors/Controllers

 

20% – 30%

 

 

 

 

 

 

 

 

 

 

 

 

Other Key Managers

 

10% – 20%

 

V.

 

PARTICIPANT CLASSIFICATION

 

 

 

 

 

Based on a Participant’s position within WCI, each Participant will be classified as a member of one of the following groups:

 

 

(i)

 

Home Building Personnel

 

 

 

 

 

(ii)

 

Division Operating Personnel

 

 

 

 

 

(iii)

 

Corporate Administrative Personnel

 

VI.

 

OBJECTIVES

 

 

 

 

 

The amount of each Participant’s Bonus shall be determined based on a combination of, (i) the Participants Bonus amount as percent of base salary, (ii) the group within which the Participant is classified and, (iii) achievement of one or more of the following objectives: Corporate Financial Objectives and Division/Project Objectives.

 

 

 

 

 

The matrix of a Participant’s classification and objectives upon which a Bonus shall be determined is as follows:

For 2002, the MICP allocations are the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Division/Project

 

 

Corporate Financial

 

Objectives and/or

Classification

 

Objectives

 

Personal Objectives


 


 


Home Building Personnel

 

 

20

%

 

 

80

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Division Operating Personnel

 

 

20

%

 

 

80

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Administrative Personnel

 

 

100

%

 

 

0

%

 

VII.

 

ACHIEVEMENT MEASUREMENT

 

 

A.

 

Corporate Administrative Personnel

 

 

 

Each Corporate Administrative Personnel Participant shall be eligible to receive incentive compensation, paid on their individual Bonus target amount as a percent of base salary in the event the Corporate Financial Objective has been achieved.

 

 

 

 

 

The Corporate Financial Objective is a combination of two (2) measurements of the financial performance of WCI.

 

 

(i)

 

Net Income

 


 

WCI Communities, Inc.
Management Incentive Compensation Plan
Page 4

 

(ii)

 

Return on Invested Capital-(“ROC”) earnings before interest and taxes (“EBIT”) divided by the weighted average capital deployed for the period. Total capital includes the sum of debt-—excluding non-monetary liabilities such as payables and accruals, plus equity, less unrestricted cash.

 

 

 

Note: Excluded from the Bonus calculation will be any parcel land sales (in overall dollars) that are not in the 2002 WCI Business Plan (“Business Plan”) for that year, unless such incremental parcel sales are submitted to and approved by the Board of Directors prior to such incremental sales.

 

 

 

 

 

This provision is intended to give management the business flexibility to “substitute” parcels, but require Board approval for “incremental” parcels. If Parcel A is in the Business Plan with a contribution of $1,000 and Parcel A is sold for a higher contribution, then the higher contribution will be included in income for “Bonus Calculation”; similarly, if the contribution is less than the Business Plan it will negatively effect income for Bonus Calculation. Management has the authority to “substitute” parcels in the Business Plan to respond to market demand.

 

 

 

 

 

WCI must meet at least eighty (80%) of the Net Income and Return on Capital, weighted as listed below, for each of the Corporate Financial Objectives to be satisfied.

 

 

 

 

 

 

 

 

 

 

 

100% of Net Income

 

 

 

 

 

 

75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15% of the Net Income component is measured quarterly, 15% is measured quarterly YTD and 70% is measured annually)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of Quarterly Net Income Goals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 1st Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 2nd Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 3rd Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 4th Quarter

 

 

3.75

%

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of Cumulative YTD Net Income Goals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement at 1st Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement at 2nd Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement at 3rd Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement at 4th Quarter

 

 

3.75

%

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of Annual Net Income Goal

 

 

70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100% of Annual Return on Capital

 

 

 

 

 

 

25

%

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

100

%

 


 

WCI Communities, Inc.
Management Incentive Compensation Plan
Page 5

 

 

Since Net Income is the most important and most comprehensive measure of current year performance, it will be the primary measurement and will be weighted at 75% of the potential MICP award. Return on Capital will be used as a secondary measurement that will motivate deployment of resources judiciously. Specifically, the program will work as follows:

Net Income—75% of MICP Potential (All acceleration of payouts will
be based upon Net Income performance)

 

 

 

Actual Achieved

 

Actual Payout (% Earned)


 


120% or higher of $112.1M

 

160% 

 

 

 

 

 

 

 

 

 

 

 

 

101 to 119%

 

100% plus 3% for each $1.12M above $112.1M

 

 

 

 

 

 

 

 

 

 

 

 

$112.1M

 

100% 

 

 

 

 

 

 

 

 

 

 

 

 

80 to 99% of $112.1M

 

100% less 3% for each $1.12M Below $112.1M

 

 

 

 

 

 

 

 

 

 

 

 

Less than 80% of $112.1M

 

No payout

Return on Capital (R.O.C.) – 25% of total MICP potential

 

 

 

Actual R.O.C.

 

Actual Payout (% earned)


 


18% or higher

 

100%; multiplied by the payout percentage awarded on Net income performance only if ROC is 100% or higher

 

 

 

 

 

 

 

 

 

 

 

 

15.4% to 17.95%

 

40% plus 3% for each .15%
Achieved in excess of 15.4%

 

 

 

 

 

 

 

 

 

 

 

 

Less than 15.4%

 

No payout

 

 

 

Any Corporate Administrative Personnel Bonus shall be payable to a qualifying Participant in the first quarter of the following Plan year.

 

 

 

 

 

(See Exhibit A & AA for hypothetical example)

 

 

B.

 

Home Building Personnel

 

 

 

 

 

 

 

Each Home Building Personnel Participant shall be eligible to receive incentive compensation, paid on their individual bonus target amount as a percent of base salary in the event targeted Division/Project

 


 

WCI Communities, Inc.
Management Incentive Compensation Plan
Page 6

 

 

 

Objectives and Corporate Financial Objectives have been achieved.

 

 

 

 

 

 

 

Bonus Compensation payable to eligible Home Building Personnel shall be calculated on an allocation weighted eighty (80%) percent on Division/Project Objectives and twenty (20%) percent on Corporate Financial Objectives.

 

 

 

 

 

(i)

 

Corporate Financial Objectives (20% of Total Target)
The Company Financial Objective portion of the above calculation, twenty (20%) percent of the total, is a combination of two (2) measurements of the financial performance of WCI, Net Income and Return on Capital. A detailed explanation of the Corporate Financial Objective is outlined in Section VII (A) above.

 

 

 

 

 

(ii)

 

Division/Project Objectives (80% of Total Target)
The Division/Project Objective portion of the above calculation, eighty (80%) percent of the total, is based on the eligible participant meeting predetermined financial objectives by job positions as listed below.

 

 

 

 

 

 

 

 

 

 

Financial

Title

 

Community/Division

 

Objectives


 


 


Division President/Financial
Manager

 

Division

 

Net Home Building
$ Contribution after Sales Overhead

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Project Manager

 

Community

 

Net Home Building
$ Contribution after Sales Overhead

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land Manager/Purchasing
Manager

 

Division

 

Gross Margin $

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production Manager

 

Community

 

Net Home Building
$ Contribution before Sales Overhead

 

 

 

 

The bonus payment calculation will be structured as follows:

 

 

 

 

 

 

 

 

 

 

 

100% of Net Contribution

 

 

 

 

 

 

80

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of Quarterly Net Income Goals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 1st Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 2nd Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 3rd Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 4th Quarter

 

 

3.75

%

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of Cumulative YTD Net Income Goals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement at 1st Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement at 2nd Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement at 3rd Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement at 4th Quarter

 

 

3.75

%

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of Annual Net Income Goal

 

 

70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100% Corporate Financial Objectives

 

 

 

 

 

 

20

%

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

100

%

 


 

WCI Communities, Inc.
Management Incentive Compensation Plan
Page 7

 

(iii)

 

In the event the Division/Project Objectives are not achieved or are exceeded, the bonus payment will be paid according to the following schedule:

 

 

 

 

Actual Achieved

 

Actual Payout

Against Plan

 

(% earned)


 


120% or higher

 

160% 

 

 

 

 

 

 

 

 

 

 

 

 

101% to 119%

 

100% plus 3% for each 1% over 100% to 119%

 

 

 

 

 

 

 

 

 

 

 

 

100%

 

100% 

 

 

 

 

 

 

 

 

 

 

 

 

80% to 99%

 

100% less 3% for each 1%
under 100%

 

 

 

 

 

 

 

 

 

 

 

 

Less than 80%

 

No Payout

 

 

(iv)

 

The Corporate Financial Objectives payment will only be paid if eighty (80%) percent or more of the Division/Project Objective is met.

(See Exhibit B & BB for hypothetical example)

 

 

 

 

 

(v)

 

The Corporate Financial and Division/Project Objective Payments shall be paid to qualifying Participants in the first quarter of the following Plan year.

 

 

 

 

 

C.

 

Division Operating Personnel

 

 

 

 

 

 

 

Each Division Operating Personnel Participant shall be eligible to receive incentive compensation, paid on their individual Bonus target amount as a percent of base salary in the event targeted Division/Project Financial Objectives and Corporate Financial Objectives have been achieved.

 

 

 

 

 

 

 

Bonus compensation payable to eligible Division Operating Personnel shall be calculated on an allocation based on two (2) components weighted eighty percent (80%) on Division/Project Objectives and twenty percent (20%) on Corporate Financial Objectives.

 

 

 

 

 

(i)

 

Corporate Financial Objectives (20% of Total Target)
The Company Financial Objective portion of the above calculation, twenty (20%) percent of the total, is a combination of two (2) measurements of the financial performance of WCI, Net Income and

 


 

WCI Communities, Inc.
Management Incentive Compensation Plan
Page 8

 

 

 

Return on Capital. A detailed explanation of the Corporate Financial Objective is outlined in Section VII (A) above.

 

 

 

 

 

(ii)

 

Division/Project Objectives (80% of Total Target)
The eighty percent (80%) component is comprised of two (2) separate factors. The weighting of these factors, which in the aggregate represent a total of eighty percent (80%) of the total target, shall be calculated as follows:

 

 

 

 

 

 

 

 

 

 

 

100% of Net Contribution

 

 

 

 

 

 

80

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of Quarterly Net Income Goals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 1st Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 2nd Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 3rd Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 4th Quarter

 

 

3.75

%

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of Cumulative YTD Net Income Goals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement at 1st Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement at 2nd Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement at 3rd Quarter

 

 

3.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement at 4th Quarter

 

 

3.75

%

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of Annual Net Income Goal

 

 

70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100% Corporate Financial Objectives

 

 

 

 

 

 

20

%

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

100

%

 

 

(iii)

 

In the event the Division/Project Objectives are not achieved or exceeded, the bonus payment will be paid according to the following schedule:

 

 

 

 

Actual Achieved

 

Actual Payout

Against Plan

 

(% earned)


 


120% or higher

 

160% 

 

 

 

 

 

 

 

 

 

 

 

 

101% to 119%

 

100% plus 3% for each 1% over 100% to 119%

 

 

 

 

 

 

 

 

 

 

 

 

100%

 

100% 

 

 

 

 

 

 

 

 

 

 

 

 

80% to 99%

 

100% less 3% for each 1%
under 100%

 

 

 

 

 

 

 

 

 

 

 

 

Less than 80%

 

No Payout

 

 

(iv)

 

The Corporate Financial Objectives payment will only be paid if eighty (80%) percent or more of the Division/Project Objective is met.

 

 

 

 

 

 

 

(See Exhibit D & DD for hypothetical example)

 


 

WCI Communities, Inc.
Management Incentive Compensation Plan
Page 9

 

(v)

 

The Corporate Financial and Division/Project Objective Payments shall be paid to qualifying Participants in the first quarter of the following Plan year.

 

VIII.

 

FORM

 

 

 

 

 

Attached Exhibit “A”-2002 Individual and Department Incentive Bonus Plan. The form is to be used to structure Participant participation.

 

 

 

IX.

 

IMPACT ON BENEFITS

 

 

 

 

 

A Participant’s Bonus, within legal limitations, will be used for contribution to the WCI Communities 401(k) and Retirement Plan unless participant elects not to make such a contribution and notifies the payroll department in writing of this election. This contribution will also receive the applicable Company match.

 

 

 

X.

 

APPROVALS

 

 

 

 

 

At the beginning of each year, the Chief Executive Officer or President/Chief Operating Officer shall submit to the Compensation Committee of the Board of Directors for it approval, the proposed incentive program for that year.

NOTE: This document is to inform the employees of potential compensation based on their performance and performance of the Company. All terms and conditions of this Plan may be modified by WCI from time-to-time upon notice. This document is for information purposes only and in no way should be construed as an employment contract or other commitment to continue your employment.

EXHIBIT A

Corporate Administrative Participant

 

 

 

 

 

Base Salary:

 

$

75,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Target Bonus %:

 

 

25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Target Bonus Amount:

 

$

18,750

 

 


 

WCI Communities, Inc.
Management Incentive Compensation Plan
Page 10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hypothetical Result

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

Net Income (@ 75%)

 

$

14,062

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 1st Quarter

 

$

527

 

 

Achieved

 

$

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 2nd Quarter

 

$

527

 

 

Not Achieved

 

No Payment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 3rd Quarter

 

$

527

 

 

Achieved

 

$

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 4th Quarter

 

$

527

 

 

Not Achieved

 

No Payment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achieve Cumulative

 

$

527

 

 

Achieved 110% YTD

 

$

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Quarter YTD Net Income

 

 

 

 

 

Achieved 110% YTD 1st Qtr)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achieve Cumulative

 

$

527

 

 

Achieved 102% YTD

 

$

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter YTD Net Income

 

 

 

 

 

(Achieved 94% 2nd Qtr)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achieve Cumulative

 

$

527

 

 

Achieved 100% YTD

 

$

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter YTD Net Income

 

 

 

 

 

(Achieved 96% 3rd Qtr)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achieve Cumulative

 

$

527

 

 

Achieved 104% YTD

 

$

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4th Quarter YTD Net Income

 

 

 

 

 

(Achieved 112% 4th Qtr)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of Annual

 

 

 

 

 

Achieved @ 104%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

9,846

 

 

Of Plan

 

$

9,846

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital (@ 25%)

 

$

4,688

 

 

Achieved @ 100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Of Plan

 

$

4,688

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

Total

 

$

17,696

 

Since Net Income was 104% of the Plan and the Return on Capital achieved was 100% or better, the $17,696 bonus achieved would be increased by 112% (3% for each 1% Net Income over 100%) for a total bonus payment of $19,820.

 


 

WCI Communities, Inc.
Management Incentive Compensation Plan
Page 11

EXHIBIT AA

Corporate Administrative Participant
(In the event 100% of Return on Capital is not met)

 

 

 

 

 

Base Salary:

 

$

75,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Target Bonus %:

 

 

25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Target Bonus Amount:

 

$

18,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hypothetical Result

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

Net Income (@ 75%)

 

$

14,062

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 1st Quarter

 

$

527

 

 

Achieved

 

$

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 2nd Quarter

 

$

527

 

 

Not Achieved

 

No Payment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 3rd Quarter

 

$

527

 

 

Achieved

 

$

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 4th Quarter

 

$

527

 

 

Not Achieved

 

No Payment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achieve Cumulative

 

$

527

 

 

Achieved 110% YTD

 

$

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Quarter YTD Net Income

 

 

 

 

 

(Achieved 110% YTD 1st Qtr)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achieve Cumulative

 

$

527

 

 

Achieved 102% YTD

 

$

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter YTD Net Income

 

 

 

 

 

(Achieved 94% 2nd Qtr)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achieve Cumulative

 

$

527

 

 

Achieved 100% YTD

 

$

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter YTD Net Income

 

 

 

 

 

(Achieved 96% 3rd Qtr)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achieve Cumulative

 

$

527

 

 

Achieved 104% YTD

 

$

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4th Quarter YTD Net Income

 

 

 

 

 

(Achieved 112% 4th Qtr)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of Annual

 

 

 

 

 

Achieved @ 104%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Profit

 

$

9,846

 

 

Of Plan

 

$

9,846

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

        Total

 

$

13,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Capital

 

$

4,688

 

 

Achieved @ 68%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Of Plan

 

$

3,188

 

Since Net Income was 104% of the Plan, the Net Income bonus achieved of $13,008 would be increased by 112% (3% for each 1% over 100%) or $14,569 and added to $3,188 (ROC @ 16.8% – 15.4% = 1.4% ÷ .15% = 9.3% x 3% + 40% = 68%) for a total bonus payment of $17,757.

 


 

WCI Communities, Inc.
Management Incentive Compensation Plan
Page 12

EXHIBIT B

Homebuilding

 

 

 

 

 

Base Salary:

 

$

100,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Target Bonus %:

 

 

40

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Target Bonus Amount:

 

$

40,000

 

 

 

 

 

 

 

 

 

 

 

Division/Project Financial Objectives

 

$

32,000

 

 

 

(80

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company Financial Objectives

 

$

8,000

 

 

 

(20

%)

 

 

 


 

 

 


 

 

$

40,000

 

 

 

(100

%)

Corporate Financial Objectives
(@ 20% of Targeted Bonus, or $8,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

Targeted

 

Hypothetical

 

Bonus

(@ 75% or $6,000)

 

Bonus

 

Result

 

Paid


 


 


 


Achievement of 1st Quarter

 

$

225

 

 

Achieved

 

$

225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 2nd Quarter

 

$

225

 

 

Not Achieved

 

No Payment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 3rd Quarter

 

$

225

 

 

Achieved

 

$

225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achievement of 4th Quarter

 

$

225

 

 

Not Achieved

 

No Payment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Achieve Cumulative

 

$

225

 

 

Achieved 110% YTD

 

$

225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Quarter YTD Net Income

 

 

 

 

 

(Achieved 110% YTD 1st Qtr)