Corporate Executive Bonus Plan
The Household International Executive Bonus Plan is a short-term, annual incentive plan. The purpose of the
annual bonus is to place a significant part of pay at risk and reward executives for the achievements of individual,
business unit and corporate financial and operational goals. Performance goals and award opportunities will be
communicated to plan participants at the beginning of each calendar year.
Participation in the Plan will be restricted to key line and staff executives. For purposes of the Plan, participants
will be divided into groups. (See attached list).
Any changes in the group of executives participating in the Plan will be made by the Chief Executive Officer,
subject to the approval of the Compensation Committee in the case of any participant whose base salary must be
determined by the Committee.
Level of Awards
The corporate measurement of performance is company-wide earnings per share, return on equity, core
receivables growth, revenue growth, equity to managed assets ratio and products per customer ratio.
Household's performance will be measured against pre-established minimum, target and maximum levels.
Individual performance is also measured and the percentage attributed to any particular performance objective
varies by executive and may change from year- to-year as circumstances warrant. Management may reduce
bonus awards in light of overall business conditions or other exceptional circumstances.
Target awards will be paid for fully satisfactory financial and individual performance in a given year. The target
award percentage for each group will approximate the guideline percentage shown below of the executive's base
salary at the end of the plan year.
Guideline % of Annual Base Salary Determined by
Group Target Bonus Maximum Bonus