Nicor Inc. Form 10-K Exhibit 10.24
Nicor Gas INCENTIVE COMPENSATION PLAN
A. The 1998 Nicor Gas 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 Gas.
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
importance. The Plan also encourages teamwork among officer areas and among line and staff groups.
C. Eligible Group
Officers of Nicor Gas in Salary Grades EX-1 or higher are eligible for participation. 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.
Standards for base salaries will be managed at the appropriate industry quartile which will be determined 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 organizati