NICOR Inc. Form 10-K Exhibit 10.18
NICOR INCENTIVE COMPENSATION PLAN
A. The 1994 NICOR Incentive Compensation Plan is designed to link participant incentive compensation to the
accomplishment of important objectives--both financial goals and defined strategic plans. It ties the pay an
individual receives to his performance and that of the Company. This plan is intended to provide a flexible
framework for a performance bonus program for NICOR.
The purpose of this Plan is to provide an annual incentive plan which supports the longer-term strategic planning
process. This is done by linking pay to the performance of tasks which focus on objectives of strategic
C. Eligible Group
Officers of NICOR. Participation should be limited to those employees in positions which enable them to make
significant contributions to the performance and growth of the Company.
D. Components of Plan
Goal Setting Guidelines
Form of Payment
Base Salary + Bonus Target - Short-Term Compensation Objective
An individual's short-term compensation objective will be based on salary plus a bonus, expected to be earned if
agreed-upon performance targets are met. Under certain conditions, short-term compensation above or below
targets may be paid.
Base salaries will be managed at the industry average which will be determined annually by survey data. Bonus
targets will be set based on the individual's grade level and Compensation Objective, such that total
compensation objectives are managed at the level as determined by the Compensation Committee to remain
competitive with industry.
The bonus target amount varies according to pay, salary grade and ability to impact the organization. The higher
responsibility and impact levels, the greater the dollars at risk.
Performance criteria would focus on the achievement of agreed-upon and docume