NICOR ANNUAL INCENTIVE COMPENSATION PLAN FOR OFFICERS
Nicor Inc. (the “Company”, or “Nicor”) has established the Nicor Annual Incentive Compensation Plan for
Officers (the “Plan”) to link participant incentive compensation to the accomplishment of corporate and operating
unit financial performance, as well as to non-financial measures of operating performance across the Company
and operating units. It ties the pay an individual receives to Company performance and non-financial goals. This
plan is intended to provide a framework for a performance-based bonus program for Nicor, and is effective
January 1, 2008.
The purpose of this Plan is to provide meaningful annual incentive award opportunity to the participants. Awards
will be directly tied to the achievement of corporate financial and goals and non-financial objectives.
Officers of Nicor are eligible for participation. As such, participation is limited to employees in positions which
enable them to make significant contributions to the performance and growth of the Company.
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
established performance targets are met. Short-term compensation above (or below) target levels may be paid in
the event performance exceeds (or falls short of) goals.
Standards for base salaries will be targeted to the 50
percentile of the appropriate blend of general and industry
survey data. Base salaries are reviewed annually by the Compensation Committee of the Board of Directors (the
The bonus target amount varies according to pay, job responsibilities and ability to impact the organization and is
consistent with the bonus opportunity ranges set by officer salary bands. Higher responsibility