Exhibit 10.3

 

	

    	
2014 Incentive Compensation Plan

Effective January 1, 2014
    


 

	
Employee              Joseph W. Kennedy
    	
2014   Base Salary
    	
$
    	
136,000
    	
 
    	
 
    	
 
    
	
Title                        SVP/CFO
    	
2014   Bonus Target
    	
11
    	
%
    	
$
    	
14,960
    	
 
    
								


 

Thresholds                                 Maintain CAMELS rating at one of the two highest ratings

Maintain an Asset Quality Rating of “Satisfactory” or better

 

Goal #1:                                           Achieve Return on Assets

 

	
Annual   Payout Target
    	
60%
    	
=
    	
$
    	
8,976
    	
 
    


 

	
 
    	
 
    	
Payout
    	
 
    
	
Goals
    	
 
    	
 
    	
 
    
	
95% of Budget
    	
 
    	
$
    	
2,962
    	
 
    
	
At Budget
    	
 
    	
$
    	
5,924
    	
 
    
	
106% of Budget
    	
 
    	
$
    	
8,976
    	
 
    
	
Stretch Goal
    	
 
    	
 
    	
 
    
	
Every .03% over 106% of Budget
    	
 
    	
$
    	
2,962
    	
 
    


 

Goal #2:                                             Achieve Efficiency Ratio

 

	
Annual   Payout Target
    	
20%
    	
=
    	
$
    	
2,992
    	
 
    


 

	
 
    	
 
    	
Payout
    	
 
    
	
Goals
    	
 
    	
 
    	
 
    
	
102% of Budget
    	
 
    	
$
    	
997
    	
 
    
	
At Budget
    	
 
    	
$
    	
1,995
    	
 
    
	
97% of Budget
    	
 
    	
$
    	
2,992
    	
 
    
	
Stretch Goal
    	
 
    	
 
    	
 
    
	
Every 2% under 97% of Budget
    	
 
    	
$
    	
997
    	
 
    


 

Goal #3:                                           Achieve Net Interest Margin Percentage

 

	
Annual   Payout Target
    	
20%
    	
=
    	
$
    	
2,992
    	
 
    


 

	
 
    	
 
    	
Payout
    	
 
    
	
Goals
    	
 
    	
 
    	
 
    
	
98% of Budget 
    	
 
    	
$
    	
987
    	
 
    
	
At Budget 
    	
 
    	
$
    	
1,975
    	
 
    
	
102% of Budget 
    	
 
    	
$
    	
2,992
    	
 
    
	
Stretch Goal
    	
 
    	
 
    	
 
    
	
Every 0.07% over 102% of Budget
    	
 
    	
$
    	
987
    	
 
    


 

NOTES:

 

Bonus targets are based on Georgetown Bancorp Inc. 2014 budget.

All dollar figures are based on  estimates of annualized salary.  Incentive payments are based on the employee’s actual base compensation for the fiscal year, which includes  straight time pay,  vacation, holiday, personal, sick and jury duty pay.   Overtime and other payments including previous year’s bonus payout will be excluded from the calculation.

 

To be eligible for the Incentive Compensation, the employee must be actively employed, performing at a level of “satisfactory” or above, and not be on a written warning at the time of the incentive payment.

 

The Bank shall have the right to rescind and recoup or “clawback” incentive payments paid under this plan if the Compensation Committee concludes that such awards were paid out based on information that is later found to be materially incorrect, including payments that were determined, in whole or in part, on financial statement information that is subsequently restated.

 

By signing below I confirm receipt of my Incentive Compensation Plan and my understanding of the provisions stated above.

 

 

	
 
    	
 
    	
 
    
	
Joseph W. Kennedy
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Robert E. Balletto, CEO/President
    	
 
    	
Date