Short Term Incentive Plan



 Exhibit 10.8 
  

	
	 SHORT-TERM INCENTIVE PLAN
  

PLAN DESIGN


  
 Performance Measure

  

	 	•	Return on Class A Equity 

  
 Formula 
  

	 	•	Class A Equity (Pre-CEO Incentive Earnings after M.I.) as a Percentage of Beginning Class A Equity 

  
 Performance Measure Construction 
  

	 	•	Threshold – Needs to be determined annually 

  

	 	    	10% 

  

	 	    	$33M Beginning Class A Equity = $3.3M 

  

	 	•	Goal – Needs to be determined annually 

  

	 	    	15% 

  

	 	    	$33M Beginning Class A Equity = $4.95M 

  

	 	•	Uncapped – No maximum (same as current plan) 

  

 1 









	
	 SHORT-TERM INCENTIVE PLAN
  

PARTICIPATION AND AWARD LEVELS


  
 Tier I 
  

	 	•	President/CEO 

  
 Tier II 
  

	 	•	Chief Operating Officer 

  
 Tier III 
  

	 	•	Executive Vice President/CFO 

  

	 	•	Chief Operating Office – Stone Division 

  

 2 









	
	 SHORT-TERM INCENTIVE PLAN
  

AWARD LEVELS / TARGET AWARDS AT GOAL ROE (15%)


  
 Tier I 
  

	 	•	50% of base salary 

  
 Tier II 
  

	 	•	50% of base salary 

  
 Tier III 
  

	 	•	40% of base salary 

  

 3 









	
	 SHORT-TERM INCENTIVE PLAN
  

AWARD LEVELS


  

					
	 	 	 Threshold
 (10% ROE)

	 	 Goal
 (15% ROE)


	Tier I	 	25% of base salary	 	50% of base salary
	Tier II	 	25% of base salary	 	50% of base salary
	Tier III	 	20% of base salary	 	40% of base salary

  

 4 









	
	 SHORT-TERM INCENTIVE PLAN
  

AWARD SCHEDULE


  

										
	 	  	Performance
Return on Equity

	 	 	Tier I & II
Award Percentage
of Base Salary

	 	 	Tier III
Award Percentage
of Base Salary

	 
	 Threshold
	  	10	%	 	25	%	 	20	%
	 Goal
	  	15	%	 	50	%	 	40	%
	 	  	20	%	 	75	%	 	60	%
	 	  	30	%	 	126	%	 	101	%
	 	  	40	%	 	176	%	 	141	%

  

	 	•	Performance below Threshold will result in no award being made. 

  

	 	•	Performance beyond Threshold will be calculated according to a scale. 

  

 5 









	
	 SHORT-TERM INCENTIVE PLAN
  

PARTICIPANT AWARD LEVELS AT GOAL


  

							
	 	  	Position

	  	 8/03
 Base
Salary

	  	Target Award
at Goal


	Tier I	  	President/CEO	  	$320,000	  	50% / $160,000
	Tier II	  	Chief Operating Officer	  	$160,000	  	50% / $80,000
	Tier III	  	Executive Vice President/CFO	  	$135,200	  	40% / $54,080
	 	  	Chief Operating Officer – Stone Division	  	$150,000	  	40% / $60,000

  

 6 









	
	 SHORT-TERM INCENTIVE PLAN
  

PLAN ADMINISTRATION OUTLINE


  

	1.	Purpose of the Plan 

  

	2.	Definitions of Plan Terms (i.e., ROE) 

  

	3.	Plan Year (FCStone Fiscal Year) 

  

	4.	Effective Date – September 1, 2002 

  

	5.	Plan Administrator (Chairman of the Board) 

  

	6.	Plan Administration (follows plans guidelines, but free to interpret including issues where the plan is silent) 

  

	7.	Eligibility (to be determined by the Plan Administrator) 

  

	8.	Termination of Employment (either by executive of FCStone all rights are forfeited) 

  

	9.	Amendment/Termination of the Plan (at the Plan Administrator’s discretion) 

  

	10.	Employment (Plan is not a contract) 

  

	11.	Death, Disability, or Retirement (pro-rated award) 

  

	12.	Legal Requirements (in accordance with Federal, state and local statutory requirements) 

  

 7