exv10w03



 







Exhibit 10.03




INTUIT INC. PERFORMANCE INCENTIVE PLAN

FOR FISCAL YEAR 2007





	1.	 	Overview: Intuit Inc.’s Performance Incentive Plan (IPI) is a program under which
Intuit Inc. (“Intuit”) pays discretionary cash bonus awards to select employees located in
the United States of America. Bonus awards under the IPI are paid annually. The amount of a
bonus award is based upon the employee’s bonus target and performance during the fiscal
year and the bonus pool made available for payments under the IPI for the applicable fiscal
year. The IPI is intended to provide employees with “performance-based compensation” within
the meaning of Section 409A of the Internal Revenue Code (“Code”).
	 
	2.	 	Purposes: The IPI is a component of Intuit’s overall strategy to pay its employees for
performance. The purposes of IPI are to: (i) attract and retain top performing employees;
(ii) motivate employees by tying compensation to performance; and (iii) reward exceptional
performance that supports overall Intuit objectives.
	 
	3.	 	Effective Date: The terms of this IPI document will be applicable to bonuses for
services during Intuit’s 2007 fiscal year that begins August 1, 2006.
	 
	4.	 	Eligibility: All employees of Intuit are eligible to participate in the IPI, except
for employees who (i) are classified as seasonal employees, (ii) are classified as
interns/project employees, (iii) participate in Intuit’s Senior Executive Incentive Plan,
unless such employee is specifically approved by the Compensation and Organizational
Development Committee (“Compensation Committee”) to also participate in the IPI, (iv)
participate in other Intuit incentive compensation plans that specifically exclude an
employee’s participation in the IPI, including, but not limited to, the sales incentive
compensation plans and the contact center incentive compensation plans, (v) participate in
an incentive compensation plan sponsored by Intuit or an Intuit subsidiary for
international employees that was designed to provide a cash incentive benefit to such
employees comparable to or in lieu of the IPI, (vi) work for Intuit on a purely commission
basis or (vii) participate in the Performance Incentive Plan for Employees of
International Subsidiaries of Intuit Inc. Those employees who are determined to be eligible
for bonus awards under the IPI are called “Participants.” Participants in the IPI (other
than Senior Officers, which term means the Chief Financial Officer, any Executive Vice
President or Senior Vice President, the Vice President of Internal Audit and any other
officer who is a Section 16 officer or any other officer who reports to the President and
Chief Executive Officer) are not eligible to simultaneously participate in any other bonus
or cash incentive plan, unless the Vice President responsible for Total Rewards otherwise
specifically approves such participation. Senior Officers who are Participants in the IPI
are not eligible to simultaneously participate in any other bonus or cash incentive plan,
unless the Compensation Committee otherwise specifically approves such participation. An
employee must commence employment or otherwise




 









 












	 	 	become eligible to participate in the IPI no later than April 1 to be eligible for a
bonus award under the IPI for that fiscal year. Being a Participant does not entitle the
individual to receive a bonus award. Bonus awards are payable to Participants that meet
the criteria set forth in Paragraph 6 below.






	5.	 	Plan Year: The IPI operates on a fiscal year basis, August 1 through July 31.
	 
	6.	 	Bonus Awards: Bonus awards are discretionary payments. A Participant must be an active
employee in good standing and on Intuit’s or an approved subsidiary’s payroll on the day
the bonus award is paid to receive any portion of the bonus payment. A Participant who is
not actively employed or on an approved payroll for whatever reason on the date a bonus
award is paid is not entitled to a partial or pro rata bonus award. Intuit may make
exceptions in its sole discretion, provided, however, that exceptions for Senior Officers
must be made by the Compensation Committee. There is no minimum award or guaranteed
payment. Bonus awards are paid based on the fiscal year. A bonus award is calculated with
reference to the Participant’s bonus target and performance for the fiscal year and the
bonus pool made available for bonus awards under the IPI for the fiscal year.






	 	a.	 	Bonus Targets:






	 	i.	 	For each Participant that is paid an annual salary,
his or her bonus target is established as a percentage of the
Participant’s base salary. For each Participant that is paid hourly, his
or her bonus target is established as a percentage of the Participant’s
base pay. In accordance with the Fair Labor Standards Act, for each
Participant that is paid hourly, Intuit will either (a) add overtime
earnings to base pay in the calculation of the IPI award or (b) add the
amount of the IPI award to base pay and recalculate the Participant’s
hourly rate for overtime pay.
	 
	 	ii.	 	When an employee becomes a Participant, he or she
is advised of his or her bonus target for the fiscal year.
	 
	 	iii.	 	Following the beginning of each fiscal year, each
Participant is advised of his or her bonus target by the executive leader
of the Participant’s business or functional unit or the executive
leader’s designee.
	 
	 	iv.	 	The Compensation Committee establishes individual
bonus targets for Senior Officers and other Intuit officers. The
President and Chief Executive Officer may establish individual bonus
targets for officers. Bonus targets for other employees are established
by the Vice President responsible for Total Rewards in consultation with
Intuit’s President and Chief Executive Officer, the employee’s manager
and the individual responsible for the business unit or division thereof
or functional unit or division thereof in which the employee works and
that unit or division’s HR director.




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	 	v.	 	Intuit may establish bonus target guidelines for
each fiscal year; provided, however, that bonus targets for Senior
Officers are to be established by the Compensation Committee. A
Participant’s bonus target for a fiscal year may be determined based upon
a variety of factors, including but not limited to, his or her base
salary or base pay, position or level. A bonus target does not guarantee
that a bonus award will be made at that rate.






	 	b.	 	Determination of a Bonus Award Amount






	 	i.	 	The amount of a bonus award to a Participant who is
a Senior Officer is determined by the Compensation Committee, in
consultation with Intuit’s President and Chief Executive officer. The
amount of a bonus award to a Participant who is not a Senior Officer is
determined by the executive leader of the Participant’s business unit or
functional group and Intuit’s President and Chief Executive Officer in
consultation with the Participant’s direct manager and the Vice President
responsible for Total Rewards.
	 
	 	ii.	 	A Participant’s bonus award is linked to an
assessment of the Participant’s total job performance for the fiscal
year. Factors that may be considered, include but are not limited to,
what the Participant does to advance Intuit’s success and how the
Participant does it, especially leadership, balance of short-term actions
with long-term goals, resource allocation and maintenance by the
Participant of focus on Intuit while prioritizing the needs of customers,
employees and stockholders.
	 
	 	iii.	 	There is neither a minimum nor maximum amount of a
bonus award that may be paid to a Participant for a fiscal year. At
Intuit’s discretion, a bonus award amount may be prorated for those
Participants who are eligible to participate in the IPI for less than a
full fiscal year; provided, however, that decisions relating to Senior
Officers must be made by the Compensation Committee.
	 
	 	iv.	 	Any bonus award paid to a Participant is subject to
all applicable taxes and withholding.






	 	c.	 	When Bonus Awards are Paid: The timing for payment of a bonus award is
determined by the Vice President responsible for Total Rewards in consultation with
Intuit’s President and Chief Executive Officer and other senior management. A
Participant has no right to a bonus award until it is paid. Notwithstanding the
foregoing, in the event of an administrative error in the calculation or payment of
a bonus award to a Participant, Intuit reserves the right to seek recovery from a
Participant of an erroneously paid excessive bonus amount. Once a bonus award is
no longer subject to a “substantial risk of forfeiture” (as determined pursuant to
regulations and/or other guidance promulgated under Section 409A of the Code),





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	 	 	 	then it shall be paid not later than the later of: (i) 21/2 months after the end of
Intuit’s first taxable year when the bonus award is no longer subject to such
“substantial risk of forfeiture”, or (ii) 21/2 months after the end of such
Participant’s first taxable year when the bonus award is no longer subject to such
“substantial risk of forfeiture”; unless a later date is established by Intuit, or
Intuit permits the Participant to designate a later date, in either case only as
permitted under Section 409A of the Code.






	7.	 	Unfunded: The IPI is not funded. Bonus awards, if any, are made from the general
assets of Intuit. The Compensation Committee determines in its sole discretion the amount
of funds it would like to make available for bonus awards based on Intuit’s performance for
the fiscal year. Intuit’s performance for this purpose may be measured in a number of ways,
including but not limited to: financial measures, such as revenue and operating income;
qualitative measures, such as accomplishments to position Intuit for the future; the year’s
market conditions; stockholder returns; and progress of Intuit’s business model. Intuit is
not obligated to pay any part of such funds in bonus awards.
	 
	8.	 	Amendment: The Compensation Committee has the authority to terminate, change, modify
or amend the provisions of the IPI at any time. Notwithstanding the foregoing, Intuit’s
President and Chief Executive Officer, Chief Financial Officer and Vice President
responsible for Total Rewards, each individually, has the authority to make amendments to
the IPI that do not significantly increase the cost of the IPI and which in such
individual’s determination (i) clarify the terms of the IPI; (ii) assist in the
administration of the IPI; (iii) are necessary or advisable for the IPI to comply with
applicable law; or (iv) are necessary or advisable for the IPI to provide
“performance-based compensation” within the meaning of Code Section 409A for individuals
who participate in the Intuit Inc. 2005 Non-Qualified Executive Deferred Compensation Plan.
	 
	9.	 	Administration and Discretion: Except as otherwise required for Senior Officers under
the Charter of the Compensation Committee, Intuit’s President and Chief Executive Officer
and the Vice President responsible for Total Rewards have the sole discretion to: (a) adopt
such rules, regulations, agreements and instruments as it deems necessary to administer the
IPI; (b) interpret the terms of the IPI; (c) determine an employee’s eligibility under the
IPI; (d) determine whether a Participant is to receive a bonus award under the IPI; (e)
determine the amount of any bonus award to a Participant; (f) determine when a bonus award
is to be paid to a Participant and whether any such bonus award should be prorated based on
the Participant’s service or other factors; (g) determine whether a bonus award will be
made in replacement of or as an alternative to any other incentive or compensation plan of
Intuit or of an acquired business unit or corporation; (h) grant waivers of IPI standard
procedures and policies; (i) correct any defect, supply any omission, or reconcile any
inconsistency in the IPI, any bonus award or any notice to Participants or a Participant
regarding bonus awards; and (j) take any and all other actions it deems necessary or
advisable for the proper administration of the IPI.




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	10.	 	Participation Provides No Guarantee of Employment: Employment at Intuit is at-will and
participation in the IPI in no way constitutes an employment contract conferring either a
right or obligation of continued employment.
	 
	11.	 	Governing Law: The IPI will be governed by and construed in accordance with the laws
of the State of California.





Approved by the

Compensation and Organizational Development Committee

on July 25, 2006





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