2004 Corporate Support and Tellers Incentive Compensation Program



 EXHIBIT (10)(m) 
  

					
	The Sage Group	  	 	  	 
	CONSULTANTS TO MANAGEMENT	  	 	  	10409 LESLIE DRIVE
	 	  	 	  	RALEIGH, NORTH CAROLINA 27601
	 	  	 	  	(919) 844-9783
	 	  	 	  	E-mail: steve@sagegroupconsulting.com

  
 MEMORANDUM

  

			
	DATE:	  	May 1, 2004
		
	TO:	  	Lee Johnson, President M&F Bank
		
	FROM:	  	Steven A. Savia, CMC
		
	RE:	  	Final 2004 Corporate Support and Tellers Incentive Compensation Program
		
	CC:	  	 

  
 This year’s incentive
compensation program will have multiple components. 
  

	 	1.	Executive Plan 

  

	 	2.	City Executive Plan 

  

	 	3.	Loan Production Plan 

  

	 	4.	Branch Customer Service Plan 

  

	 	5.	Corporate Support/Teller Plan 

  
 This memo describes the plan for Corporate Support Personnel and Tellers. This plan remains essentially the same as in the previous year. 
  
 Schedule F on the following pages provides the list of participants in the Corporate
Support/Teller Incentive Program. 
  
 SCHEDULE F –
CORPORATE SUPPORT/TELLER 
 PLAN PARTICIPANTS 
  
  

			
	 EMPLOYEE

	  	 POSITION


	 Bailey, Tabitha
	  	P-T Teller
		
	 Ennis, Claytius
	  	Teller
		
	 Evans, Danita
	  	Teller
		
	 Harrison, David
	  	Teller
		
	 Lee, Tracie
	  	Teller
		
	 Rogers, Charlene
	  	P/T Teller

  

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	Strickland, Cynthia	  	Teller
		
	Suggs, Kimberly	  	Teller
		
	Alexander, Brendalyn	  	Credit Review Officer
		
	Allen, Nicole	  	Compliance Assistant
		
	Banks, Julia	  	VP/Branch Operations Support
		
	Bass, Sherri	  	Treasury Manager
		
	Bonnette, Kevin	  	EDP Coordinator
		
	Bradley, Barbara	  	Loan Documentation Specialist
		
	Brooks, Kinon	  	Operations Tech I
		
	Brown, Eleanor	  	Operations Clerk II
		
	Carter, Latonia	  	Operations Accounting Assistant
		
	Curtis, Catina	  	Operations Technician
		
	Douglas, Denise	  	Electronic Services Clerk
		
	Ellis, Faye	  	Receptionist/Secretary
		
	Farkas, Donna	  	Accounting Assistant
		
	Forbes, Todd	  	Operations Tech I
		
	Gill, Peggy	  	Internal Auditor
		
	Hailey-Jones, Vermont	  	Loan Services Coordinator
		
	Harris, Davon	  	Finance Assistant
		
	Hollingsworth, Tammie	  	Staff Accountant
		
	Lester, Patricia	  	Operations Accounting Assistant
		
	Lyon, Alice	  	EDP Operations Manager
		
	Mallory, Renee	  	Human Resources Assistant
		
	Mitchell, Pamala E	  	Loan Operations Coordinator
		
	Parker, Charles	  	Facility Support Services Coordinator
		
	Parker, Kevin	  	P/T Network Technician
		
	Quick, Saundra	  	Executive Assistant
		
	Quiett, Valerie	  	Compliance Officer
		
	Rollins, Sharlene	  	Loan Procedures Coordinator
		
	Rouse, Jane	  	Electronic Services Clerk

  

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	Shands, Artis	  	Account Services Manager 1
		
	Spruill, Ruth	  	Loan Documentation Specialist
		
	Sturges, Allan	  	VP and Controller
		
	Thornton, Chevez	  	Loan Operations Manager
		
	Williams, Stephanie	  	Human Resources Manager
		
	Wright, Danielle	  	Credit Analyst
		
	Wright, K. Lynette	  	Electronic Services Clerk
		
	Alston, Sheila	  	Teller Supervisor
		
	McClain, Ann	  	Teller
		
	Artis, Pearline	  	Teller
		
	Evans, April	  	Teller
		
	Graham, Angela	  	Teller
		
	Jones-Davis, Tiffany	  	Teller
		
	Ray, Lisa	  	Teller
		
	Boomer, Betty	  	Teller
		
	Harrington, Yvonne	  	P/T Teller
		
	Plummer, Lynette	  	Teller
		
	Johnson, Melanie	  	Teller
		
	Williams, Jarvis	  	Teller Supervisor
		
	Grimes, Michelle	  	Teller
		
	Davis, Rochelle	  	Teller

  
 For the purpose of the Plan, employees
will be divided into two groups: 
  

	•	 	Tellers (includes working Teller Supervisors) 

  

	•	 	Corporate Support (Financial Accounting, Credit Administration, Operations Group personnel, Marketing and other support staff) 

  
 Tellers 
  
 Incentive compensation for Tellers will be based on individual CAP and shop scores. Working Teller Supervisors’ awards shall be based
on the individual and branch CAP scores. Regular and part-time tellers must have a minimum average CAP score of 80 and an average shop score of 80 for the quarter to be eligible to participate. 
  

			
	 Monthly Individual CAP

	  	 Amount


	95 or above	  	$150 for each month achieved
	90 to 94	  	$100 for each month achieved
	85 to 89	  	$ 75 for each month achieved
	80 to 84	  	$ 60 for each month achieved

  

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 Part-time tellers (20 hours or less or an employee whose primary job is not a teller) will receive
one-half of the award amounts. 
  
 Working Teller Supervisors whose primary
responsibility is to operate a teller’s window and to supervise all tellers will be paid based on the average monthly CAP and Shop score of their branch (provided their individual average for the quarter is at least 85 for both the CAP and Shop
scores). The monthly Shop score of the branch must be at least 80 in addition to the CAP score to qualify for payment. 
  

			
	 Monthly Branch Score

	  	 Amount


	95 or above	  	$175 for each month achieved
	90 to 94	  	$125 for each month achieved
	85 to 89	  	$100 for each month achieved
	80 to 84	  	$ 85 for each month achieved

  
 The incentive will be paid each
quarter within 45 days of the quarter ending March 31, June 30, September 30 and December 31, respectively. 
  
 Incentive compensation will be paid only on new funds for both loans and deposits. Incentive compensation will be based upon the individual achieving the quarterly threshold levels specified in the City
Performance Objectives and Goals to be eligible for inclusion in the incentive calculation. Neither loans nor deposits will be counted should the individual fail to attain their minimum quarterly established goal. 
  
 New loan and/or deposit accounts from the same customer that are of the same type and term
will be combined and considered as one account for the purpose of this incentive program. Incentives for deposits other than certificates of deposit will be based on an average balance year-to-date and the account must have been opened for at least
30 days to be eligible. This information must be verified quarterly prior to payment. Certificates of deposit with a term of 90 days or less will only be paid 25% of the incentive amount due for other certificates. Renewal of such certificates will
not qualify for incentive consideration. 
  
 Corporate Support
Personnel/Departments 
  
 Corporate Support is defined as the supporting
departments within the corporate offices: Financial Accounting, Credit Administration, Operations Group, Marketing, Internal Audit and Compliance and other support staff as may be added from time to time: 
  
 When the Bank meets the annualized budgeted net income for the applicable quarter, the
individuals within this group shall share in an incentive pool of 5% of net income after taxes for the quarter. The amount an individual receives shall be based on the percentage as his/her salary to the total salaries within his/her respective
assigned department up to a maximum of $1,000 per quarter. Extraordinary accounting items will not be considered for purposes of payment of any incentives. 
  
 Performance evaluations will impact individual payment amounts. Any employee with a performance evaluation of less than satisfactory or any employee on probation will not
be eligible to receive an incentive award. 
  
 The incentive will be paid each
quarter within 45 days of the quarter ending March 31, June 30, September 30 and December 31, respectively. 
  

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