Fisher Communications, Inc. 2011 Management Short-Term Incentive Plan



 Fisher Communications, Inc. Management Short Term Incentive Plan -2011 

Exhibit 10.16 
  

 
 Purpose 
 The purpose of the Management Short Term Incentive Plan (the Plan) is to reward performance by focusing Fisher Communications key management employees on setting high standards and achieving performance
goals. 
 Administration of the Plan 
 The Compensation Committee of the Board of Directors of Fisher Communications (the Committee) will approve final disposition of all matters pertaining to the administration of the Plan. The
Committee’s decisions affecting the construction of the Plan will be final and binding on all parties. 
 The President and Chief Executive
Officer (CEO) of Fisher Communications, on behalf of the Committee, has the responsibility to administer the Plan. The CEO will review goals for all plan participants. The Committee will review and approve Company financial goals, individual goals
and final performance results and payouts. 
 Responsibilities for actions taken under the Plan and associated time frames are: 

 

									
	Responsibilities	 	CEO	 	Participant	 	 Finance and

Administration
	 	Committee
	 Goal setting for upcoming year

(Company financial and individual)
	 	 December 2010-

January 2011
	 	 December 2010-

January 2011
	 	October 2010-December 2010	 	
		 	 	 	 
	Goal approval for upcoming year	 		 		 		 	March 2011
		 	 	 	 
	 Evaluation of performance results at
 the end of the Plan period
	 	January 2012-February 2012	 		 	January 2012-February 2012	 	
		 	 	 	 
	Calculation of payouts	 	March 2012	 		 	March 2012	 	
		 	 	 	 
	 Approval of payouts and

performance results for previous year
	 		 		 		 	March 2012
		 	 	 	 
	Communication of payouts	 	March 2012	 		 		 	
		 	 	 	 
	Payouts to participants	 	 	 	By March 15, 2012	 	 	 	 


  

					
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 Fisher Communications, Inc. Management Short Term Incentive Plan -2011 

Exhibit 10.16 
  

 
 Plan Period 
 The plan period is defined as January 1, 2011 through December 31, 2011. 
 Plan
Participants 
 Participants in the Plan will be corporate officers and other key management employees approved by the Committee that are
responsible for directing and performing functions that have significant impact on Fisher Communications’ performance. At the current time they are: 
  

	 	•	 	 President and Chief Executive Officer 


  

	 	•	 	 Executive Vice President, Operations 


  

	 	•	 	 Senior Vice President, General Counsel and Corporate Secretary 



 

	 	•	 	 Senior Vice President, Business Development 


  

	 	•	 	 Vice President, Chief Financial Officer 


  

	 	•	 	 Vice President, Human Resources and Administration 


  

	 	•	 	 Vice President, Technology 



Newly hired employees who are added as participants to the Plan during the year may receive prorated incentive awards as recommended by the CEO and
approved by the Committee. 
 Plan Performance Measures and Weights 
 Performance measures are established before the end of the first quarter of the Plan period. 

Performance measures for all of the above employees will consist of 80% of the incentive based on Company Financial Performance or Fisher’s Adjusted
EBITDA (which may be adjusted for certain circumstances by the Compensation Committee) and 20% of the incentive based on the achievement of individual objectives. 
 Award payments for Adjusted EBITDA component will be based on the Payout as a Percent of Target which corresponds to the EBITDA achievement as a percent of target. The EBITDA payout will be calculated as
follows: Payout as a percent of target x participant’s target bonus percent x 80%. 
 The individual objectives component is based on a
pool that also varies by the EBITDA achievement. The minimum funding level for the pool is .8 x sum of participants’ target bonus x 20%. The pool funding increases with levels of EBITDA achievement such that the pool is funded at 90% of the
target opportunity at 90% EBITDA achievement and 100% at 100% EBITDA achievement. Above 100% EBITDA achievement the pool increases 5% for every 1% increase in EBITDA achievement. For example, if EBITDA achievement is 110% of target, the individual
objectives pool is 150%. If EBITDA achievement is 120% of target or higher, the individual pool is 200% of the target pool. Individual awards will vary based on individual performance. The sum of all individual awards will not exceed the total pool.


  

					
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 Fisher Communications, Inc. Management Short Term Incentive Plan -2011 

Exhibit 10.16 
  

 
 Please refer to the Corporate Matrix for illustration of award potential for
the Adjusted EBITDA component of the incentive. Please refer to the Individual Matrix for illustration of award potential for the individual objectives component of the incentive. 
 Award Schedule 
 At the beginning of the Plan year, a performance/payout schedule will be
developed that specifies threshold, target, and maximum Company financial performance levels and the corresponding percentage of the target award that would be earned for each performance level. Additionally, individual objectives are developed and
approved by the CEO. 
 Target Incentive Awards 
 Target incentive awards are expressed as a percentage of base salary and vary by position level and accountabilities. 
 Payment of Awards 
 A participant’s payout is calculated as follows: 

 

	 	•	 	 Confirm target opportunity as % of base salary 


  

	 	•	 	 Assess level of Company financial performance versus target performance 



 

	 	•	 	 Assess level of individual objective performance versus target performance 



 

	 	•	 	 Determine payout as a percent of target for Company financial and individual performance results 



Termination 
 Retirement or
Disability — In the event of termination of employment through retirement or as a result of total disability as defined in Fisher Broadcasting benefit plans, the award will be prorated for the number of months of the year completed prior to
termination. Retirement is defined as termination of employment on or after age 65. The award is contingent upon actual performance against goals during the months served. The award will be paid out at the normal payout date or earlier, at the
discretion of the Committee. 
 Death — If the participant dies, any unpaid awards will be paid to his or her estate in one lump
sum. The amount of the award will be prorated for the number of months of the year completed prior to the participant’s death. The award is contingent upon actual performance against goals during the months served. The award will be paid out at
the normal payout date or earlier, at the discretion of the Committee. 
 Termination for Reasons Other Than Retirement, Disability or
Death — In the event of termination of employment for any other reason, the participant will not be entitled to any incentive compensation for the Plan period subsequent to termination, unless otherwise approved by the Committee.


  

					
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 Fisher Communications, Inc. Management Short Term Incentive Plan -2011 

Exhibit 10.16 
  

 
 Amendment or Termination of the Plan — The Committee may
terminate, amend or modify this Plan at any time. 
 Other Considerations 
 Right of Assignment — No right or interest in the Plan is assignable or transferable, or subject to any lien, directly, by operation of law, or otherwise, including levy, garnishment,
attachment, pledge, or bankruptcy. 
 Right of Employment — Participation under this Plan does not guarantee any right to continued
employment; management reserves the right to dismiss participants. Participation in any one Plan period does not guarantee the participant the right to participation in any subsequent Plan period. 

Withholding for Taxes — Fisher Broadcasting has the right to deduct from all awards under this Plan any taxes required by law to be withheld
with respect to such payments. 

  

					
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 Fisher Communications, Inc. Management Short Term Incentive Plan -2011 

Exhibit 10.16 
  

 
 Corporate Matrix 

 

			
	 Corporate Performance
(EBITDA) as a % of

Target
	 	 Payout As a % of

Target

	 80%
	 	0%
	 81%
	 	1%
	 82%
	 	8%
	 83%
	 	10%
	 84%
	 	13%
	 85%
	 	15%
	 86%
	 	18%
	 87%
	 	23%
	 88%
	 	28%
	 89%
	 	33%
	 90%
	 	38%
	 91%
	 	43%
	 92%
	 	48%
	 93%
	 	53%
	 94%
	 	60%
	 95%
	 	68%
	 96%
	 	75%
	 97%
	 	83%
	 98%
	 	90%
	 99%
	 	98%
	 100%
	 	100%
	 101%
	 	105%
	 102%
	 	110%
	 103%
	 	115%
	 104%
	 	120%
	 105%
	 	125%
	 106%
	 	130%
	 107%
	 	135%
	 108%
	 	140%
	 109%
	 	145%
	 110%
	 	150%
	 111%
	 	155%
	 112%
	 	160%
	 113%
	 	165%
	 114%
	 	170%
	 115%
	 	175%
	 116%
	 	180%
	 117%
	 	185%
	 118%
	 	190%
	 119%
	 	195%
	 120%
	 	200%
	 	 	 


  

					
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 Fisher Communications, Inc. Management Short Term Incentive Plan -2011 

Exhibit 10.16 
  

 
 Individual Matrix 

 

			
	 Corporate Performance
(EBITDA) as a % of

Target
	 	 Pool Funding as a

% of Target

Pool

	 < 80.00%
	 	80%
	 	 	 
	 80.00%
	 	80%
	 85.00%
	 	85%
	 90.00%
	 	90%
	 95.00%
	 	95%
	 100.00%
	 	100%
	 105.00%
	 	125%
	 110.00%
	 	150%
	 115.00%
	 	175%
	 120.00%
	 	200%
	 Pool amount interpolated between levels
shown



  

					
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