EXHIBIT
10.1


 


HireRight, Inc.


 


2008
Executive Short-term Incentive Plan


 


HireRight’s objective with respect to executive
compensation is to establish programs which attract, retain and motivate
talented and qualified executives and align their compensation with our overall
business strategies, values and performance. The primary objective of the
Executive Short-term Incentive Plan (“Plan”) is to drive and reward increased
stockholder value achieved through meeting or exceeding the 2008 financial and
customer satisfaction objectives.


 


Eligibility


 


Participants
in the Plan are the Chief Executive Officer (“CEO”) and those HireRight
executives reporting directly to the CEO in a leadership capacity over a
HireRight department or division and other key executives as approved by the
Compensation Committee of the HireRight Board of Directors (“Committee”).


 


HireRight executives must have commenced work in an
eligible position prior to the beginning of the fourth quarter and remain
employed with HireRight until the day the bonus is paid to be eligible.  Bonuses for associates who become eligible
during the year will be adjusted on a pro-rated basis.  Bonuses for executives who receive a promotion
to a position with a higher bonus target during the year will be adjusted on a
pro-rated basis consistent with the time in each position.  Bonuses for executives who are on medical,
family or other leave during the year will be adjusted on a pro-rata basis
consistent with their time worked during the year.


 


Administration


 


The
Committee will approve the Plan.  The
Committee will approve the annual financial targets under the Plan.


 


Bonuses
under the Plan, if any, will be paid after the end of the 2008 fiscal year and
between January 1, 2009 and March 15, 2009.  Bonus payments will be based on HireRight’s
achievement of its financial goals and customer satisfaction results.  All payments under the Plan are subject to
the sole discretion of, and must be approved by, the Committee.  Accordingly, each individual’s subjective
personal contribution may be taken into account by the Committee, based upon
input from the CEO. The Committee, with input from the full HireRight Board of
Directors, will determine the CEO’s bonus payment.


 


The
Committee will evaluate the Plan for effectiveness and modify as
appropriate.  The Plan is subject to
change or cancellation from quarter to quarter at the sole discretion of the
Committee.


 

















 


Target Incentives


 


Short-term Incentive Targets are determined based on a
percentage of base salary consistent with competitive market variable
compensation targets.  The following
bonus targets are applicable under the Plan:


 


	
  Position

  	
   

  	
  Annual Target as %

  of Base Salary

  	
   

  
	
  CEO

  	
   

  	
  50%

  	
   

  
	
  VP, Worldwide Sales

  	
   

  	
  60%

  	
   

  
	
  Other Plan Participants

  	
   

  	
  35%

  	
   

  



 


Metrics


 


The potential bonus for all participants will be based on
HireRight’s results for the following metrics: 
40% on operating income, 25% on fully diluted earnings per share, 20% on
service revenue, and 15% on customer satisfaction.


 


Metrics Definitions and
Targets


 


The
following definitions describe the metrics upon which the Plan is based.


 


Operating Income – Operating Income is measured by the extent to which HireRight has met
its stated operating income plan for the quarter and the year as described in
HireRight’s annual operating plan.  The
Board of Directors and executive management establish the operating income plan
at the beginning of each fiscal year.


 


Earnings per Share – Earnings per share is measured by the extent to which HireRight has met
its stated fully diluted earnings per share plan for the quarter and the year
as described in HireRight’s annual operating plan.  The Board of Directors and executive
management establish the earnings per share plan at the beginning of each
fiscal year.


 


Revenue – Revenue is measured by the extent to which HireRight has met its stated
service revenue plan for the quarter and the year as described in HireRight’s
annual operating plan.  The Board of
Directors and executive management establish the revenue plan at the beginning
of each fiscal year.


 


Overall Customer Satisfaction - An outside firm
will conduct a quarterly survey of a sampling of HireRight’s customer base to
measure customer satisfaction.  The areas
addressed in the survey are developed in consultation with our survey provider
and are focused on supporting our objective of customer retention.


 


Bonus Pool Funding


 


Operating Income:  The operating
income portion may be funded to the extent HireRight can still meet its planned
operating income for the quarter.


 


Earnings per Share:  The earnings
per share portion may be funded to the extent HireRight can still meet its
planned earnings per share plan for the quarter.


 


Revenue:  The revenue
portion of the Plan may be funded as follows:


 


	
  Revenue Plan 

  Achievement

  	
   

  	
  100%

  	
   

  	
  98% to

   99.9%

  	
   

  	
  96% to

  97.9%

  	
   

  	
  94% to

  95.9%

  	
   

  	
  Less

  than

  94%

  	
   

  
	
  Funding%

  	
   

  	
  100%

  	
   

  	
  75%

  	
   

  	
  50%

  	
   

  	
  25%

  	
   

  	
  0%

  	
   

  



 

















 


Overall Customer Satisfaction:  The overall
customer satisfaction portion may be funded based on the results of the
quarterly customer satisfaction survey.


 


Provided
that HireRight achieves its annual targets, the Committee may, in its sole
discretion, make up any quarterly funding shortfall at the time of the annual
bonus payment.


 


Over Achievement Bonus


 


In the event HireRight exceeds its annual operating income
target, up to 15% of the excess operating income may be granted to the
participants in the Plan at the discretion of the Committee.  The amount of the over achievement bonus
payable to each participant is completely discretionary and is recommended by
the CEO (for participants other than himself) and subject to the approval of
the Committee.  The Committee, with input
from the full HireRight Board of Directors, will determine the CEO’s over
achievement bonus payment.  In no event
will an individual’s over achievement bonus exceed two times his or her annual
target bonus amount.


 


Bonus Calculation


 


The final bonus calculation and payment amount, if any,
will be determined once HireRight’s annual results are finalized.  The bonus will not be deemed earned until after
the end of the fiscal year, and the participant must be an active employee at
the time bonus is paid in order to be eligible for the payment.