2004 Variable Compensation (Executive Bonus) and Base
Program for CSP Inc. Vice Presidents and
The 2004 Variable Compensation and Base Pay programs provide the opportunity for incentive earnings for Vice
Presidents and General Managers based on how well they and the company perform.
The Variable Compensation Program places emphasis on company performance and is focused on the business realities of
the coming year. If CSPI does well, Vice Presidents and General Managers will too.
The Base Pay Program for Vice Presidents and General Managers contains a merit budget which places a premium on
personal performance. Both programs are designed to encourage Vice Presidents and General Managers to provide the
leadership and direction necessary to achieve the company’s business goals.
These programs have three important goals:
position the company to capitalize on the progress it makes this year .
The programs deliver a level of pay that is fully comparable to what other people in similar positions in different companies
receive. The company knows that its pay levels must be competitive to attract and retain the talent we need to succeed as a
company. We need highly-trained and uniquely skilled people to make decisions and provide the leadership that will help us
achieve our business goals.
The review of the pay practices of our peer companies shows that Vice President and General Manager level positions
contain a merit pay component as well as variable compensation. Personal performance measured against individual goals will
determine each Vice President and General Managers’ merit increase.
The Variable Compensation target incentive for Vice Presidents and General Managers is 5-30% of base pay. Each Vice
President and General Manager will have their entire Variable Compensation based on a Revenu